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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 3227 Placed on Calendar Senate (PCS)]

                                                       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.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Iran Sanctions Act 
of 2008''.
    (b) Table of Contents.--The table of contents for 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.
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.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) For more than 20 years, Iran has pursued a secret 
        nuclear program that is intended to produce a nuclear weapons 
        capability for Iran.
            (2) The Government of Iran has consistently misled the 
        United Nations, the International Atomic Energy Agency, and the 
        United States as to the objectives and scope of its nuclear 
        activities.
            (3) Iran has refused to comply with United Nations Security 
        Council Resolutions 1737 (2006), 1747 (2007), and 1803 (2008), 
        which called for the suspension of all uranium enrichment-
        related and reprocessing activities, and is advancing work at 
        its largest nuclear facility.
            (4) The International Atomic Energy Agency is unable to 
        verify the absence of undeclared nuclear material and 
        activities in Iran and its Director General has stated that 
        Iran could be 6 months to a year away from acquiring the 
        material necessary to make a nuclear weapon.
            (5) The Government of Iran possessing a nuclear weapons 
        capability would pose a grave threat to the security of the 
        United States and its allies around the world.
            (6) It is in the national security interests of the United 
        States to prevent Iran from acquiring a nuclear weapons 
        capability.
            (7) The United States should use all political, economic, 
        and diplomatic tools at its disposal to prevent Iran from 
        acquiring a nuclear weapons capability.

SEC. 3. SENSE OF CONGRESS.

    The following is the sense of Congress:
            (1) The United States should pursue vigorously all measures 
        in the international financial sector to restrict Iran's 
        ability to conduct international financial transactions, 
        including prohibiting banks in the United States from handling 
        indirect transactions with Iran's state-owned banks and 
        prohibiting financial institutions from engaging in dollar 
        transactions with Iranian institutions.
            (2) Iran should comply fully with its obligations under 
        United Nations Security Council Resolutions 1737, 1747, and 
        1803, and any subsequent United Nations resolutions related to 
        Iran's nuclear program, and in particular the requirement to 
        suspend without delay all uranium enrichment-related and 
        reprocessing activities, including research and development, 
        and all work on all heavy water-related nuclear activities, 
        including research and development.
            (3) The United Nations Security Council should take further 
        measures beyond Resolutions 1737, 1747, and 1803 to tighten 
        sanctions on Iran, including preventing new investment in 
        Iran's energy sector, as long as Iran fails to comply with the 
        international community's demand to halt its uranium enrichment 
        campaign.
            (4) The United States should encourage foreign governments 
        to direct state-owned entities to cease all investment in 
        Iran's energy sector and all exports to and imports from Iran 
        of refined petroleum products and to persuade, and, where 
        possible, require private entities based in their territories 
        to cease all investment in Iran's energy sector and all exports 
        to and imports from Iran of refined petroleum products.
            (5) Administrators of Federal and State pension plans 
        should divest all assets or holdings from foreign companies and 
        entities that have invested or invest in the future in Iran's 
        energy sector.

SEC. 4. CONSTRUCTION WITH RESPECT TO USE OF MILITARY FORCE.

    Nothing in this Act shall be construed as giving the President the 
authority to use military force against Iran.

SEC. 5. DEFINITIONS.

    In this Act:
            (1) Agricultural commodity.--The term ``agricultural 
        commodity'' has the meaning given that term in section 102 of 
        the Agricultural Trade Act of 1978 (7 U.S.C. 5602).
            (2) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' has the meaning given 
        that term in section 14(2) of the Iran Sanctions Act of 1996 
        (Public Law 104-172; 50 U.S.C. 1701 note).
            (3) Executive agency.--The term ``executive agency'' has 
        the meaning given the term in section 4 of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 403).
            (4) Family member.--The term ``family member'' means, with 
        respect to an individual, the spouse, children, grandchildren, 
        or parents of the individual.
            (5) Investment.--The term ``investment'' has the meaning 
        given that term in section 14(9) of the Iran Sanctions Act of 
        1996 (Public Law 104-172; 50 U.S.C. 1701 note).
            (6) Iranian diplomats and representatives of other 
        government and military or quasi-governmental institutions of 
        iran.--The term ``Iranian diplomats and representatives of 
        other government and military or quasi-governmental 
        institutions of Iran'' has the meaning given that term in 
        section 14(11) of the Iran Sanctions Act of 1996 (Public Law 
        104-172; 50 U.S.C. 1701 note).
            (7) Medical device.--The term ``medical device'' has the 
        meaning given the term ``device'' in section 201 of the Federal 
        Food, Drug, and Cosmetic Act (21 U.S.C. 321).
            (8) Medicine.--The term ``medicine'' has the meaning given 
        the term ``drug'' in section 201 of the Federal Food, Drug, and 
        Cosmetic Act (21 U.S.C. 321).

SEC. 6. EXPANSION OF DEFINITION OF PERSON IN THE IRAN SANCTIONS ACT OF 
              1996.

    Section 14(13)(B) of the Iran Sanctions Act of 1996 (Public Law 
104-172; 50 U.S.C. 1701 note) is amended to read as follows:
                    ``(B)(i)(I) a corporation, business association, 
                partnership, society, trust, financial institution, 
                insurer, underwriter, guarantor, or any other business 
                organization, including any foreign subsidiary, parent, 
                or affiliate of one of the foregoing; or
                    ``(II) any other nongovernmental entity, 
                organization, or group; and
                    ``(ii) any governmental entity operating as a 
                business enterprise, including an export credit agency; 
                and''.

SEC. 7. RUSSIA NUCLEAR COOPERATION.

    (a) In General.--Notwithstanding any other provision of law, and in 
addition to any other sanction in effect, beginning on the date that is 
15 days after the date of the enactment of this Act, the policies 
described in subsection (b) shall apply with respect to Russia, unless 
the President makes a certification to Congress described in subsection 
(c).
    (b) Policies.--The policies described in this subsection are the 
following:
            (1) Agreements.--The United States may not enter into an 
        agreement for cooperation with Russia pursuant to section 123 
        of the Atomic Energy Act (42 U.S.C. 2153).
            (2) Licenses to export nuclear material, facilities, or 
        components.--The United States may not issue a license to 
        export directly or indirectly to Russia any nuclear material, 
        facilities, components, or other goods, services, or technology 
        that would be subject to an agreement under section 123 of the 
        Atomic Energy Act (42 U.S.C. 2153).
            (3) Transfers of nuclear material, facilities, or 
        components.--The United States may not approve the transfer or 
        retransfer directly or indirectly to Russia of any nuclear 
        material, facilities, components, or other goods, services, or 
        technology that would be subject to an agreement under section 
        123 of the Atomic Energy Act (42 U.S.C. 2153).
    (c) Certification.--The certification described in this subsection 
means a certification made by the President to Congress on or after the 
date that is 15 days after the date of the enactment of this Act that 
the President has determined that--
            (1) Russia has suspended all nuclear assistance to Iran and 
        all transfers of advanced conventional weapons and missiles to 
        Iran; or
            (2) Iran has completely, verifiably, and irreversibly 
        dismantled all nuclear enrichment-related and reprocessing-
        related programs.
    (d) Termination of Policies.--The policies described in subsection 
(b) shall remain in effect until such time as the President makes the 
certification to Congress described in subsection (c).

SEC. 8. ECONOMIC SANCTIONS RELATING TO IRAN.

    (a) In General.--Notwithstanding any other provision of law, and in 
addition to any other sanction in effect, beginning on the date that is 
15 days after the date of the enactment of this Act, the economic 
sanctions described in subsection (b) shall apply with respect to Iran.
    (b) Sanctions.--The sanctions described in this subsection are the 
following:
            (1) Prohibition on imports.--No article of Iranian origin 
        may be imported directly or indirectly into the United States.
            (2) Prohibition on exports.--
                    (A) In general.--Except as provided in subparagraph 
                (B), no article that is of United States origin may be 
                exported directly or indirectly to Iran.
                    (B) Exceptions.--
                            (i) In general.--The prohibition in 
                        subparagraph (A) does not apply to exports to 
                        Iran of--
                                    (I) agricultural commodities;
                                    (II) medicine or medical devices; 
                                or
                                    (III) other articles exported to 
                                Iran to provide humanitarian assistance 
                                to the people of Iran.
                            (ii) Informational materials.--
                                    (I) In general.--The President may 
                                not regulate or prohibit the 
                                exportation, directly or indirectly, to 
                                Iran of informational materials, 
                                including publications, films, posters, 
                                phonograph records, photographs, 
                                microfilms, microfiche, tapes, compact 
                                discs, CD ROMs, artworks, and news wire 
                                feeds that are classifiable under 
                                headings 9701, 9702, or 9703 of the 
                                Harmonized Tariff Schedule of the 
                                United States.
                                    (II) Exception.--The limitation on 
                                regulation or prohibition of 
                                exportation under subclause (I) does 
                                not apply to informational materials 
                                the exportation of which are otherwise 
                                controlled--
                                            (aa) under section 5 of the 
                                        Export Administration Act of 
                                        1979 (50 U.S.C. App. 2404) (as 
                                        in effect pursuant to the 
                                        International Emergency 
                                        Economic Powers Act (50 U.S.C. 
                                        1701 et seq.)); or
                                            (bb) under section 6 of 
                                        that Act (50 U.S.C. App. 2405), 
                                        to the extent that such 
                                        controls promote the 
                                        nonproliferation or 
                                        antiterrorism policies of the 
                                        United States or with respect 
                                        to which acts are prohibited by 
                                        chapter 37 of title 18, United 
                                        States Code.
            (3) Accession to wto.--The United States Trade 
        Representative or any other Federal official may not take any 
        action that would extend preferential trade treatment to, or 
        lead to the accession to the World Trade Organization of, Iran.
            (4) Freezing assets.--
                    (A) In general.--At such time as the United States 
                has access to the names of Iranian diplomats and 
                representatives of other government and military or 
                quasi-governmental institutions of Iran that are 
                subject to sanctions imposed under the authority of the 
                International Emergency Economic Powers Act (50 U.S.C. 
                1701 et seq.) or any other provision of law relating to 
                the imposition of sanctions with respect to Iran, the 
                President shall take such action as may be necessary to 
                freeze immediately the funds and other assets belonging 
                to anyone so named and any family members or associates 
                of those so named to whom assets or property of those 
                so named were transferred on or after January 1, 2008. 
                The action described in the preceding sentence includes 
                requiring any United States financial institution that 
                holds funds and assets of a person so named to report 
                promptly to the Office of Foreign Assets Control 
                information regarding such funds and assets.
                    (B) Asset reporting requirement.--Not later than 14 
                days after a decision is made to freeze the property or 
                assets of any person under this paragraph, the 
                President shall report the name of such person to the 
                appropriate congressional committees.
            (5) United states government contracts.--The head of an 
        executive agency may not procure, or enter into a contract for 
        the procurement of, any goods or services from a person that 
        meets the criteria for the imposition of sanctions under 
        section 5(a) of the Iran Sanctions Act of 1996 (Public Law 104-
        172; 50 U.S.C. 1701 note).

SEC. 9. LIABILITY OF PARENT COMPANIES FOR VIOLATIONS OF SANCTIONS BY 
              FOREIGN ENTITIES.

    (a) In General.--In any case in which an entity, the parent company 
of which is a United States person, engages in an act outside the 
United States that, if committed in the United States or by a United 
States person, would violate the provisions of Executive Order 12959 
(50 U.S.C. 1701 note) or Executive Order 13059 (50 U.S.C. 1701 note), 
or any other prohibition on transactions with respect to Iran imposed 
under the authority of the International Emergency Economic Powers Act 
(50 U.S.C. 1701 et seq.) or any other provision of law, the parent 
company of the entity shall be subject to the penalties for the act if 
the parent company knowingly participates in the act.
    (b) Effective Date.--
            (1) In general.--Subsection (a) shall take effect on the 
        date of the enactment of this Act and apply with respect to 
        acts described in that subsection that are--
                    (A) commenced on or after the date of the enactment 
                of this Act; or
                    (B) except as provided in paragraph (2), commenced 
                before such date of enactment, if such acts continue on 
                or after such date of enactment.
            (2) Exception.--Subsection (a) shall not apply with respect 
        to an act described in paragraph (1)(B) by an entity if the 
        parent company of the entity divests or terminates its business 
        with that entity not later than 90 days after such date of 
        enactment.
    (c) Definitions.--In this section:
            (1) Entity.--The term ``entity'' means a partnership, 
        association, trust, joint venture, corporation, or other 
        organization.
            (2) Parent company.--The term ``parent company'' means an 
        entity--
                    (A) that is a United States person; and
                    (B)(i) that owns, directly or indirectly, more than 
                50 percent of the equity interest by vote or value in 
                another entity;
                    (ii) board members or employees of which hold a 
                majority of the seats on the board of directors of 
                another entity; or
                    (iii) that otherwise controls or is able to control 
                the actions, policies, or personnel decisions of 
                another entity.
            (3) United states person.--The term ``United States 
        person'' means--
                    (A) a natural person who is a citizen, resident, or 
                national of the United States; and
                    (B) an entity that is organized under the laws of 
                the United States, any State or territory thereof, or 
                the District of Columbia, if natural persons described 
                in subparagraph (A) own, directly or indirectly, more 
                than 50 percent of the outstanding capital stock or 
                other beneficial interest in such entity.

SEC. 10. MANDATORY INVESTIGATIONS INTO THE IMPOSITION OF SANCTIONS.

    (a) In General.--Section 4(f) of the Iran Sanctions Act of 1996 
(Public Law 104-172; 50 U.S.C. 1701 note) is amended--
            (1) in paragraph (1), by striking ``should'' and inserting 
        ``shall'';
            (2) in paragraph (2), by striking ``should'' and inserting 
        ``shall''; and
            (3) by adding at the end the following:
            ``(3) Extension of time for investigations.--The President 
        may extend the time period for making a determination under 
        paragraph (2) by not more than an additional 180 days if the 
        President determines that the President will be unable to make 
        a determination during the time period required under paragraph 
        (2).''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply with respect to investigations initiated based on information 
indicating that a person is engaged in investment activity described in 
section 5(a) of the Iran Sanctions Act of 1996 (Public Law 104-172; 50 
U.S.C. 1701 note) that is received by the United States on or after the 
date that is 90 days after the date of the enactment of this Act.

SEC. 11. MODIFICATION OF CERTAIN TAX INCENTIVES FOR OIL COMPANIES 
              INVESTING IN IRAN.

    (a) In General.--Subsection (h) of section 167 of the Internal 
Revenue Code of 1986 (relating to amortization of geological and 
geophysical expenditures) is amended by adding at the end the following 
new paragraph:
            ``(6) Longer amortization period when iran sanctions in 
        effect.--
                    ``(A) In general.--In the case of geological and 
                geophysical expenses paid or incurred during any 
                taxable year ending during a sanction period with 
                respect to the taxpayer--
                            ``(i) paragraphs (1) and (4) shall be 
                        applied by substituting `10-year' for `24-
                        month', and
                            ``(ii) paragraph (5)(A) shall be applied by 
                        substituting `10-year' for `7-year'.
                    ``(B) Special rule for unamortized expenses as of 
                beginning of sanction period.--In the case of 
                geological and geophysical expenses paid or incurred 
                after December 31, 2008, and remaining unamortized as 
                of the beginning of the first taxable year ending 
                during a sanction period with respect to the taxpayer, 
                such unamortized expenses shall be treated as having 
                been paid or incurred during such first taxable year 
                for purposes of applying subparagraph (A).
                    ``(C) Special rule for unamortized expenses as of 
                end of sanction period.--In the case of geological and 
                geophysical expenses paid or incurred after December 
                31, 2008, and remaining unamortized as of the beginning 
                of the first taxable year ending after the last day of 
                a sanction period, the taxpayer may elect to treat such 
                unamortized expenses as having been paid or incurred 
                during such first taxable year for purposes of applying 
                this subsection.
                    ``(D) Sanction period.--For purposes of this 
                paragraph, the term `sanction period' means, with 
                respect to any taxpayer, any period during which 
                sanctions under section 5(a) of the Iran Sanctions Act 
                of 1996 or section 8 of the Iran Sanctions Act of 2008 
                (relating to sanctions with respect to the development 
                of petroleum resources of Iran)--
                            ``(i) are imposed on the taxpayer, or
                            ``(ii) are imposed on any other member of 
                        the expanded affiliated group which includes 
                        the taxpayer, or would be so imposed if such 
                        other member were a domestic corporation.
                    ``(E) Expanded affiliated group.--For purposes of 
                this paragraph--
                            ``(i) In general.--The term `expanded 
                        affiliated group' means an affiliated group as 
                        defined in section 1504(a), determined--
                                    ``(I) by substituting `more than 50 
                                percent' for `at least 80 percent' each 
                                place it appears, and
                                    ``(II) without regard to paragraphs 
                                (2), (3), and (4) of section 1504(b).
                            ``(ii) Other affiliated entities.--Under 
                        regulations prescribed by the Secretary, the 
                        term `expanded affiliated group' shall include 
                        entities other than corporations which, based 
                        on principles similar to the principles which 
                        apply in the case of clause (i), are members of 
                        the same affiliated group.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to expenses paid or incurred on or after January 1, 2009.

SEC. 12. WORLD BANK LOANS TO IRAN.

    (a) Report.--Not later than 180 days after the date of the 
enactment of this Act, and every 180 days thereafter, the Secretary of 
the Treasury shall submit to the appropriate congressional committees a 
report on--
            (1) the number of loans provided by the World Bank to 
        entities in Iran and for projects or activities in Iran;
            (2) the dollar amount of such loans; and
            (3) the voting record of each member of the World Bank on 
        such loans.
    (b) Reduction of Contribution of the United States.--If the World 
Bank extends any new loans to entities in Iran, or for projects and 
activities in Iran, after December 31, 2008, the President shall reduce 
the total amount otherwise payable on behalf of the United States to 
the World Bank for fiscal year 2010 and each fiscal year thereafter by 
an amount that bears the same ratio to the total amount otherwise 
payable as--
            (1) the total of the amounts provided by the Bank to 
        entities in Iran, and for projects and activities in Iran, in 
        the preceding fiscal year, bears to
            (2) the total of the amounts provided by the Bank to all 
        entities, and for all projects and activities, in the preceding 
        fiscal year.
    (c) Allocation of Amounts Not Contributed to the World Bank.--There 
is authorized to be appropriated to the United States Agency for 
International Development for fiscal year 2010 and each fiscal year 
thereafter an amount equal to the amount made available as a result of 
the application of subsection (b). Funds appropriated pursuant to this 
subsection shall be made available for the Child Survival and Health 
Programs Fund to carry out programs relating to maternal and child 
health, vulnerable children, and infectious diseases other than HIV/
AIDS.

SEC. 13. INCREASED CAPACITY FOR EFFORTS TO COMBAT UNLAWFUL OR TERRORIST 
              FINANCING.

    (a) Findings.--The work of the Office of Terrorism and Financial 
Intelligence of the Department of the Treasury, which includes the 
Office of Foreign Assets Control and the Financial Crimes Enforcement 
Network, is critical to ensuring that the international financial 
system is not used for purposes of supporting terrorism and developing 
weapons of mass destruction.
    (b) Authorization of Appropriations for Office of Terrorism and 
Financial Intelligence.--There is authorized to be appropriated to the 
Secretary of the Treasury for the Office of Terrorism and Financial 
Intelligence--
            (1) $61,712,000 for fiscal year 2009; and
            (2) such sums as may be necessary for each of the fiscal 
        years 2010 and 2011.
    (c) Authorization of Appropriations for Financial Crimes 
Enforcement Network.--Section 310(d)(1) of title 31, United States 
Code, is amended by striking ``such sums as may be necessary for fiscal 
years 2002, 2003, 2004, and 2005'' and inserting ``$91,335,000 for 
fiscal year 2009 and such sums as may be necessary for each of the 
fiscal years 2010 and 2011''.

SEC. 14. EXCHANGE PROGRAMS WITH THE PEOPLE OF IRAN.

    (a) Sense of Congress.--It is the sense of Congress that the United 
States should seek to enhance its friendship with the people of Iran, 
particularly by identifying young people of Iran to come to the United 
States under United States exchange programs.
    (b) Exchange Programs Authorized.--The President is authorized to 
carry out exchange programs with the people of Iran, particularly the 
young people of Iran. To the extent practicable, such programs shall be 
carried out in a manner consistent with the requirements for 
eligibility for assistance specified in section 302(b) of the Iran 
Freedom Support Act (Public Law 109-293; 120 Stat. 1348).
    (c) Authorization of Appropriations.--Of the amounts available 
under the heading ``Educational and Cultural Exchange Programs'', under 
the heading ``Administration of Foreign Affairs'', under title IV of 
the Science, State, Justice, Commerce, and Related Agencies 
Appropriations Act, 2006 (Public Law 109-108; 119 Stat. 2321), there 
are authorized to be appropriated to the President to carry out this 
section $15,000,000 for fiscal year 2009.

SEC. 15. SENSE OF CONGRESS ON RADIO BROADCASTING TO IRAN.

    It is the sense of Congress that the Broadcasting Board of 
Governors should devote a greater proportion of the programming of the 
Radio Farda service to programs offering news and analysis to further 
the open communication of information and ideas to Iran.

SEC. 16. SENSE OF CONGRESS REGARDING THE INTERNATIONAL REGIME FOR THE 
              ASSURED SUPPLY OF NUCLEAR FUEL FOR PEACEFUL MEANS.

    (a) Policy.--It is the policy of the United States to support the 
establishment of an international regime for the assured supply of 
nuclear fuel for peaceful means under a multilateral authority, such as 
the International Atomic Energy Agency.
    (b) Sense of Congress on an International Regime for the Assured 
Supply of Nuclear Fuel.--It is the sense of Congress that--
            (1) the Concept for a Multilateral Mechanism for Reliable 
        Access to Nuclear Fuel, proposed by the United States, France, 
        the Russian Federation, the Federal Republic of Germany, the 
        United Kingdom, and the Netherlands on May 31, 2006, is welcome 
        and should be expanded upon at the earliest possible 
        opportunity;
            (2) the proposal by the Government of the Russian 
        Federation to bring one of its uranium enrichment facilities 
        under international management and oversight is also a welcome 
        development and should be encouraged by the United States;
            (3) the offer by the Nuclear Threat Initiative of 
        $50,000,000 in funds to support the creation of an 
        international nuclear fuel bank by the International Atomic 
        Energy Agency is also welcome, and the United States and other 
        member states of the International Atomic Energy Agency should 
        pledge collectively at least an additional $100,000,000 in 
        matching funds to fulfill the proposal made by the Nuclear 
        Threat Initiative; and
            (4) the Global Nuclear Energy Partnership, initiated by 
        President George W. Bush in January 2006, is intended to 
        provide a reliable fuel supply throughout the fuel cycle and 
        promote the nonproliferation goals of the United States.
    (c) Sense of Congress on Contributions to IAEA To Establish an 
International Nuclear Fuel Bank.--
            (1) In general.--It is the sense of Congress that the 
        President should determine the appropriateness of making 
        voluntary contributions on a grant basis to the International 
        Atomic Energy Agency (in this subsection referred to as the 
        ``IAEA'') to support the establishment of an international 
        nuclear fuel bank to maintain a reserve of low-enriched uranium 
        for the production of reactor fuel to be provided to eligible 
        countries in the case of a disruption in the supply of reactor 
        fuel by normal market mechanisms.
            (2) Determinations.--It is the sense of Congress that, in 
        making a determination under paragraph (1), the President 
        should consider whether--
                    (A) the IAEA has received pledges in a total amount 
                of not less than $100,000,000 from other governments or 
                entities for the purpose of supporting the 
                establishment of the international nuclear fuel bank 
                referred to in paragraph (1);
                    (B) the international nuclear fuel bank referred to 
                in paragraph (1) will be under the oversight of the 
                IAEA or another multilateral authority; and
                    (C) the international nuclear fuel bank will 
                provide nuclear reactor fuel to a country only if--
                            (i) at the time of the request for nuclear 
                        reactor fuel, the country is in full compliance 
                        with its IAEA safeguards agreement and has an 
                        additional protocol for safeguards in force;
                            (ii) in the case of a country that at any 
                        time prior to the request for nuclear reactor 
                        fuel has been determined to be in noncompliance 
                        with its IAEA safeguards agreement, the IAEA 
                        Board of Governors determines that the country 
                        has taken all necessary actions to satisfy any 
                        concerns of the IAEA Director General regarding 
                        the activities that led to the prior 
                        determination of noncompliance;
                            (iii) the country agrees to use the nuclear 
                        reactor fuel in accordance with its IAEA 
                        safeguards agreement; and
                            (iv) the country does not operate uranium 
                        enrichment or spent-fuel reprocessing 
                        facilities of any scale.
            (3) Authorization of appropriations.--There are authorized 
        to be appropriated $50,000,000 to carry out this section for 
        fiscal year 2009. Amounts appropriated pursuant to this section 
        shall remain available until September 30, 2011.

SEC. 17. REPORTING REQUIREMENTS.

    (a) Foreign Investment in Iran.--Not later than 180 days after the 
date of the enactment of this Act, and every 180 days thereafter, the 
Secretary of the Treasury shall submit to the appropriate congressional 
committees a report on--
            (1) any foreign investments made in Iran's energy sector on 
        or after January 1, 2008; and
            (2) the determination of the President on whether each such 
        investment qualifies as a sanctionable offense under section 
        5(a) of the Iran Sanctions Act of 1996 (Public Law 104-172; 50 
        U.S.C. 1701 note).
    (b) Investment by United States Companies in Iran.--Not later than 
180 days after the date of the enactment of this Act, and annually 
thereafter, the Secretary of the Treasury shall report to the 
appropriate congressional committees the names of persons that have 
operations or conduct business in the United States that have invested 
in Iran and the dollar amount of each such investment.
    (c) Establishment of International Regime.--Not later than 180 days 
after the date of the enactment of this Act, the President shall submit 
to the Committee on Foreign Affairs of the House of Representatives and 
the Committee on Foreign Relations of the Senate a report on the 
activities of the United States to support the establishment of an 
international regime for the assured supply of nuclear fuel for 
peaceful means under a multilateral authority, such as the 
International Atomic Energy Agency.
    (d) Export Credits.--Not later than 90 days after the date of the 
enactment of this Act, and every 90 days thereafter, the Secretary of 
the Treasury shall report to the appropriate congressional committees 
on the export credits issued by foreign banks to persons investing in 
the energy sector of Iran, and any fines, restrictions, or other 
actions taken by the President to discourage or prevent the issuance of 
such export credits.
    (e) Sense of Congress on Investment by the Federal Thrift Savings 
Plan in Iran.--It is the sense of Congress that not later than 180 days 
after the date of the enactment of this Act, and annually thereafter, 
the Executive Director of the Federal Retirement Thrift Investment 
Board should report to the appropriate congressional committees on any 
investment in entities that invest in Iran from the Thrift Savings Fund 
established under section 8437 of title 5, United States Code.

SEC. 18. WAIVER AUTHORITY.

    The President may waive the imposition of sanctions under section 
8, 9, or 12 if the President--
            (1) determines that such a waiver is in the national 
        interest of the United States; and
            (2) submits to the appropriate congressional committees a 
        report describing the reasons for the determination.

SEC. 19. TERMINATION.

    Except as provided in section 7, the provisions of, and amendments 
made by, this Act shall terminate on the earlier of--
            (1) the date on which the President determines and 
        certifies to the appropriate congressional committees that Iran 
        has completely, verifiably, and irreversibly dismantled all 
        uranium enrichment-related and reprocessing-related programs; 
        or
            (2) the date that is 5 years after the date of the 
        enactment of this Act.
                                                       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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