IB 

Union Calendar No. 215 

110TH CONGRESS 

1ST SESSION H. R. 1400 

[Report No. 110–294, Part 1] 

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 

MARCH 8, 2007 

Mr. LANTOS (for himself, Ms. ROS-LEHTINEN, Mr. ACKERMAN, Mr. PENCE, 

Mr. SHERMAN, Mr. ROYCE, Mr. BERMAN, and Mr. SMITH of New Jersey) 

introduced the following bill; which was referred to the Committee on 

Foreign Affairs, and in addition to the Committees on Ways and Means, 

Financial Services, Oversight and Government Reform, and the Judiciary, 

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 

AUGUST 2, 2007 

Reported from the Committee on Foreign Affairs with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

AUGUST 2, 2007 

Referral to the Committees on Ways and Means, Financial Services, Oversight 

and Government Reform, and the Judiciary extended for a period ending 

not later than September 7, 2007 

SEPTEMBER 4, 2007 

Referral to the Committees on Ways and Means, Financial Services, Oversight 

and Government Reform, and the Judiciary extended for a period ending 

not later than September 21, 2007 

SEPTEMBER 21, 2007 

Referral to the Committees on Ways and Means, Financial Services, Oversight 

and Government Reform, and the Judiciary extended for a period ending 

not later than September 24, 2007 


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SEPTEMBER 24, 2007 

Additional sponsors: Mr. WEXLER, Mr. CROWLEY, Ms. MATSUI, Mr. FERGUSON, Ms. WASSERMAN SCHULTZ, Mr. MCCOTTER, Mr. DAVIS of Alabama, Mr. LOBIONDO, Mrs. MUSGRAVE, Mr. TOWNS, Mr. PALLONE, Mr. 

JEFFERSON, Mr. ROTHMAN, Mr. BOREN, Mr. ENGEL, Mr. PLATTS, Mr. 

HOLDEN, Mr. MCCAUL of Texas, Mr. HOLT, Mr. STEARNS, Mr. TIBERI, 

Mrs. GILLIBRAND, Mr. KNOLLENBERG, Mr. KLINE of Minnesota, Mr. 

BISHOP of New York, Mr. COHEN, Mr. KIRK, Mr. MCHUGH, Mr. LINDER, Mr. LEWIS of Georgia, Mr. FATTAH, Ms. JACKSON-LEE of Texas, 

Mr. MITCHELL, Mr. WELLER of Illinois, Mr. PERLMUTTER, Mr. MCNULTY, Mr. BLUNT, Mr. GENE GREEN of Texas, Mr. LINCOLN DIAZ-BALART

of Florida, Mrs. MALONEY of New York, Ms. SCHWARTZ, Mr. CARNEY, 

Mr. BONNER, Mr. MCINTYRE, Mr. DOYLE, Ms. SCHAKOWSKY, Mrs. 

DRAKE, Mr. KLEIN of Florida, Ms. HARMAN, Mr. CUELLAR, Mr. GORDON of Tennessee, Mr. GRAVES, Mr. SAXTON, Mrs. BONO, Mr. ANDREWS, Mr. WOLF, Mr. BERRY, Mr. COLE of Oklahoma, Mr. MATHESON, 

Mrs. NAPOLITANO, Mr. SENSENBRENNER, Mr. DENT, Mr. PORTER, Mr. 

MAHONEY of Florida, Ms. PRYCE of Ohio, Mrs. MCMORRIS RODGERS, 

Mr. LAMBORN, Mr. HIGGINS, Mr. MACK, Ms. ESHOO, Mr. ALLEN, Mr. 

WESTMORELAND, Mr. BOSWELL, Mr. CLAY, Mr. CALVERT, Mr. HUNTER, 

Mr. COSTA, Mr. BILBRAY, Mr. WELCH of Vermont, Mr. SCOTT of Georgia, Mr. CANTOR, Mr. CHABOT, Ms. HERSETH SANDLIN, Mr. SESTAK, 

Mr. WEINER, Mr. CARNAHAN, Mr. RENZI, Mr. REICHERT, Mr. JACKSON

of Illinois, Mr. BURTON of Indiana, Mr. SHADEGG, Mr. WALBERG, Mr. 

WILSON of South Carolina, Mr. SIRES, Mr. SHIMKUS, Mr. WAMP, Mr. 

HASTINGS of Florida, Mr. EHLERS, Mrs. CUBIN, Mr. SKELTON, Mr. SESSIONS, Mr. UDALL of Colorado, Mr. DAVIS of Kentucky, Ms. BERKLEY, 

Mr. GALLEGLY, Mr. LATHAM, Ms. DEGETTE, Mr. FEENEY, Mr. NUNES, 

Mr. SAM JOHNSON of Texas, Mr. MELANCON, Mr. SHAYS, Mr. BACA, Ms. 

ZOE LOFGREN of California, Mr. MCHENRY, Mr. CHANDLER, Mr. 

NEUGEBAUER, Ms. GIFFORDS, Mr. ROGERS of Alabama, Mr. PATRICK

MURPHY of Pennsylvania, Mr. SULLIVAN, Mr. MEEK of Florida, Mr. 

SIMPSON, Mr. THOMPSON of Mississippi, Mr. BILIRAKIS, Mr. ROHRABACHER, Ms. HOOLEY, Mr. WAXMAN, Mr. SALI, Mr. KING of Iowa, Mrs. 

BLACKBURN, Mr. FRANKS of Arizona, Mr. YARMUTH, Mr. JOHNSON of 

Georgia, Mr. BARROW, Mr. GERLACH, Mr. MURPHY of Connecticut, Ms. 

FOXX, Mr. LEWIS of Kentucky, Mr. WELDON of Florida, Ms. BEAN, Ms. 

DELAURO, Mr. GARRETT of New Jersey, Mr. TERRY, Mr. WALDEN of 

Oregon, Mr. CAMPBELL of California, Mr. RUSH, Mr. GINGREY, Mr. KILDEE, Mr. FORBES, Mrs. JONES of Ohio, Ms. LINDA T. SA ́NCHEZ of California, Mr. ISRAEL, Mr. LUCAS, Mr. BISHOP of Georgia, Mr. HOYER, Mr. 

GONZALEZ, Mr. AL GREEN of Texas, Mr. WALSH of New York, Mr. 

RYAN of Wisconsin, Mrs. LOWEY, Mr. LATOURETTE, Mr. SARBANES, Mr. 

LINCOLN DAVIS of Tennessee, Mr. BARTLETT of Maryland, Mr. BISHOP

of Utah, Mrs. BACHMANN, Mr. WYNN, Mr. REHBERG, Mr. LAMPSON, Mr. 

COOPER, Mr. FOSSELLA, Mr. CAMP of Michigan, Mr. WILSON of Ohio, 

Mr. COURTNEY, Mr. JINDAL, Mr. POE, Mr. MOORE of Kansas, Mr. VAN

HOLLEN, Mr. RAMSTAD, Mr. SALAZAR, Mr. SMITH of Nebraska, Ms. 

WATSON, Mr. ALEXANDER, Mr. RANGEL, Mr. ARCURI, Mr. RADANOVICH, 

Mrs. MCCARTHY of New York, Ms. GINNY BROWN-WAITE of Florida, 


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Mr. NADLER, Mr. BAKER, Mr. HASTINGS of Washington, Mr. HARE, Ms. 

FALLIN, Mr. EMANUEL, Mr. MICHAUD, Mr. ENGLISH of Pennsylvania, 

Mr. HELLER, Mr. FARR, Mr. HENSARLING, Mr. VISCLOSKY, Mr. 

BOOZMAN, Mr. MARIO DIAZ-BALART of Florida, Mr. KING of New York, 

Mr. ELLSWORTH, Mr. SMITH of Texas, Mr. MARCHANT, Ms. ROYBAL-ALLARD, Mr. PRICE of Georgia, Mr. BARRETT of South Carolina, Mr. 

CULBERSON, Mr. DONNELLY, Mr. CONAWAY, Mr. JORDAN of Ohio, Ms. 

CASTOR, Mr. BOYD of Florida, Mr. BUCHANAN, Mr. FILNER, Mr. MILLER of North Carolina, Ms. SUTTON, Mr. CARTER, Mr. KIND, Mr. 

BROWN of South Carolina, Mrs. DAVIS of California, Mr. PASCRELL, Mr. 

PUTNAM, Mr. YOUNG of Alaska, Mr. TIAHRT, Mr. DOOLITTLE, Ms. 

EDDIE BERNICE JOHNSON of Texas, Mr. LANGEVIN, Mr. LEVIN, Mr. 

RODRIGUEZ, Mr. HAYES, Mr. JOHNSON of Illinois, Mr. CARDOZA, Mr. 

HODES, Mrs. MILLER of Michigan, Mr. BRALEY of Iowa, Mr. SOUDER, 

Mr. LIPINSKI, Mr. GOHMERT, Mr. RUPPERSBERGER, Mr. KAGEN, Ms. 

HIRONO, Mr. ROSKAM, Mr. SPACE, Mr. PETERSON of Pennsylvania, Mr. 

ROGERS of Michigan, Mr. LARSEN of Washington, Mr. ETHERIDGE, Mr. 

ROSS, Mr. DINGELL, Mr. BURGESS, Mr. CLEAVER, Mr. UPTON, Mr. 

MARSHALL, Mr. COBLE, Mr. KENNEDY, Ms. GRANGER, Mr. BAIRD, Mrs. 

TAUSCHER, Ms. CORRINE BROWN of Florida, Mr. DAVID DAVIS of Tennessee, Mr. DANIEL E. LUNGREN of California, Mr. KUHL of New York, 

Mr. BRADY of Pennsylvania, Mr. THOMPSON of California, Mr. HALL of 

New York, Mr. TIM MURPHY of Pennsylvania, Mrs. CAPITO, Ms. WOOLSEY, Mrs. EMERSON, Mr. TURNER, Mr. MCCARTHY of California, Mr. 

HILL, Mr. INSLEE, Mr. DAVIS of Illinois, Mr. SHULER, Mrs. WILSON of 

New Mexico, Mr. TOM DAVIS of Virginia, Mr. ADERHOLT, Mr. 

FORTENBERRY, Ms. LORETTA SANCHEZ of California, Mr. SCHIFF, Mr. 

STUPAK, Mr. CRENSHAW, Mr. MCKEON, Mr. MICA, Mr. KELLER of Florida, Mr. CUMMINGS, Mr. MILLER of Florida, Mrs. MYRICK, Mr. GUTIERREZ, Mr. HOEKSTRA, Mr. SMITH of Washington, Mr. SCOTT of Virginia, 

Mr. ALTMIRE, Mr. HASTERT, Mr. LOEBSACK, Mr. WALZ of Minnesota, 

Mr. REYNOLDS, Mr. FORTUN ̃O, Mr. FRELINGHUYSEN, Mr. WICKER, Mr. 

MCNERNEY, Mr. MARKEY, Mr. DICKS, Mr. YOUNG of Florida, Mr. 

PAYNE, Mr. PICKERING, Mr. PITTS, Mr. MORAN of Virginia, Ms. SHEAPORTER, Mr. GOODLATTE, Mr. LEWIS of California, Mr. GARY G. MILLER of California, and Mr. FRANK of Massachusetts 

SEPTEMBER 24, 2007 

Committees on Ways and Means, Financial Services, Oversight and Government Reform, and the Judiciary discharged; committed to the Committee 

of the Whole House on the State of the Union and ordered to be printed 

[For text of introduced bill, see copy of bill as introduced on March 8, 2007] 

A BILL 

To enhance United States diplomatic efforts with respect 


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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 ‘‘Iran Counter-Proliferation Act of 2007’’. 

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

7 this Act is as follows: 

Sec. 1. Short title and table of contents. 

Sec. 2. United States policy toward Iran. 

TITLE I—SUPPORT FOR DIPLOMATIC EFFORTS RELATING TO 

PREVENTING IRAN FROM ACQUIRING NUCLEAR WEAPONS 

Sec. 101. Support for international diplomatic efforts. 

Sec. 102. Peaceful efforts by the United States. 

TITLE II—ADDITIONAL BILATERAL SANCTIONS AGAINST IRAN 

Sec. 201. Application to subsidiaries. 

Sec. 202. Additional import sanctions against Iran. 

Sec. 203. Additional export sanctions against Iran. 

TITLE III—AMENDMENTS TO THE IRAN SANCTIONS ACT OF 1996 

Sec. 301. Multilateral regime. 

Sec. 302. Mandatory sanctions. 

Sec. 303. Authority to impose sanctions on principal executive officers. 

Sec. 304. United States efforts to prevent investment. 

Sec. 305. Clarification and expansion of definitions. 

Sec. 306. Removal of waiver authority. 

TITLE IV—ADDITIONAL MEASURES 

Sec. 401. Additions to terrorism and other lists. 

Sec. 402. Increased capacity for efforts to combat unlawful or terrorist financing. 

Sec. 403. Exchange programs with the people of Iran. 

Sec. 404. Reducing contributions to the World Bank. 

Sec. 405. Restrictions on nuclear cooperation with countries assisting the nuclear 

program of Iran. 

Sec. 406. Elimination of certain tax incentives for oil companies investing in 

Iran. 

TITLE V—MISCELLANEOUS PROVISIONS 

Sec. 501. Termination. 


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1 SEC. 2. UNITED STATES POLICY TOWARD IRAN. 

2 (a) FINDINGS.—Congress finds the following: 

3 (1) The prospect of the Islamic Republic of Iran 

4 achieving nuclear arms represents a grave threat to 

5 the United States and its allies in the Middle East, 

6 Europe, and globally. 

7 (2) The nature of this threat is manifold, rang8 ing from the vastly enhanced political influence ex9 tremist Iran would wield in its region, including the 

10 ability to intimidate its neighbors, to, at its most 

11 nightmarish, the prospect that Iran would attack its 

12 neighbors and others with nuclear arms. This concern 

13 is illustrated by the statement of Hashemi 

14 Rafsanjani, former president of Iran and currently a 

15 prominent member of two of Iran’s most important 

16 decisionmaking bodies, of December 14, 2001, when he 

17 said that it ‘‘is not irrational to contemplate’’ the use 

18 of nuclear weapons. 

19 (3) The theological nature of the Iranian regime 

20 creates a special urgency in addressing Iran’s efforts 

21 to acquire nuclear weapons. 

22 (4) Iranian regime leaders have persistently de23 nied Israel’s right to exist. Current President 

24 Mahmoud Ahmadinejad has called for Israel to be 

25 ‘‘wiped off the map’’ and the Government of Iran has 


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1 displayed inflammatory symbols that express similar 

2 intent. 

3 (5) The nature of the Iranian threat makes it 

4 critical that the United States and its allies do every5 thing possible—diplomatically, politically, and eco6 nomically—to prevent Iran from acquiring nuclear7 arms capability and persuade the Iranian regime to 

8 halt its quest for nuclear arms. 

9 (b) SENSE OF CONGRESS.—It is the sense of the Con10 gress that— 

11 (1) Iranian President Ahmadinejad’s persistent 

12 denials of the Holocaust and his repeated assertions 

13 that Israel should be ‘‘wiped off the map’’ may con14 stitute a violation of the Convention on the Preven15 tion and Punishment of the Crime of Genocide and 

16 should be brought before an appropriate international 

17 tribunal for the purpose of declaring Iran in breach 

18 of the Genocide Convention; 

19 (2) the United States should increase use of its 

20 important role in the international financial sector to 

21 isolate Iran; 

22 (3) Iran should be barred from entering the 

23 World Trade Organization (WTO) until all issues re24 lated to its nuclear program are resolved; 


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1 (4) all future free trade agreements involving 

2 Iran should be conditioned on the requirement that 

3 the parties to such agreements pledge not to invest 

4 and not to allow companies based in its territory or 

5 controlled by its citizens to invest in Iran’s energy 

6 sector or otherwise to make significant investment in 

7 Iran; 

8 (5) United Nations Security Council Resolution 

9 1737 (December 23, 2006), which was passed unani10 mously and mandates an immediate and uncondi11 tional suspension of Iran’s nuclear enrichment pro12 gram, represents a critical gain in the world-wide 

13 campaign to prevent Iran’s acquisition of nuclear 

14 arms and should be fully respected by all nations; 

15 (6) the United Nations Security Council should 

16 take further measures beyond Resolution 1737 to 

17 tighten sanctions on Iran, including preventing new 

18 investment in Iran’s energy sector, as long as Iran 

19 fails to comply with the international community’s 

20 demand to halt its nuclear enrichment campaign; 

21 (7) the United States should encourage foreign 

22 governments to direct state-owned entities to cease all 

23 investment in Iran’s energy sector and all exports of 

24 refined petroleum products to Iran and to persuade, 

25 and, where possible, require private entities based in 


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1 their territories to cease all investment in Iran’s en2 ergy sector and all exports of refined petroleum prod3 ucts to Iran; 

4 (8) moderate Arab states have a vital and per5 haps existential interest in preventing Iran from ac6 quiring nuclear arms, and therefore such states, par7 ticularly those with large oil deposits, should use their 

8 economic leverage to dissuade other nations, including 

9 the Russian Federation and the People’s Republic of 

10 China, from assisting Iran’s nuclear program directly 

11 or indirectly and to persuade other nations, including 

12 Russia and China, to be more forthcoming in sup13 porting United Nations Security Council efforts to 

14 halt Iran’s nuclear program; 

15 (9) the United States should take all possible 

16 measures to discourage and, if possible, prevent for17 eign banks from providing export credits to foreign 

18 entities seeking to invest in the Iranian energy sector; 

19 (10) the United States should oppose any further 

20 activity by the International Bank for Reconstruction 

21 and Development with respect to Iran, or the adop22 tion of a new Country Assistance Strategy for Iran, 

23 including by seeking the cooperation of other coun24 tries; 


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1 (11) the United States should extend its program 

2 of discouraging foreign banks from accepting Iranian 

3 state banks as clients; 

4 (12) the United States should prohibit all Ira5 nian state banks from using the United States bank6 ing system; 

7 (13) United States Federal pension plans should 

8 divest themselves of all non-United States companies 

9 investing more than $20,000,000 in Iran’s energy sec10 tor; 

11 (14) State and local government pension plans 

12 should divest themselves of all non-United States com13 panies investing more than $20,000,000 in Iran’s en14 ergy sector; 

15 (15) the United States should designate the Is16 lamic Revolutionary Guards Corps, which purveys 

17 terrorism throughout the Middle East and plays an 

18 important role in the Iranian economy, as a foreign 

19 terrorist organization under section 219 of the Immi20 gration and Nationality Act, place the Islamic Revo21 lutionary Guards Corps on the list of specially des22 ignated global terrorists, and place the Islamic Revo23 lutionary Guards Corps on the list of weapons of 

24 mass destruction proliferators and their supporters; 


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1 (16) United States concerns regarding Iran are 

2 strictly the result of actions of the Government of 

3 Iran; and 

4 (17) the American people have feelings of friend5 ship for the Iranian people, regret that developments 

6 of recent decades have created impediments to that 

7 friendship, and hold the Iranian people, their culture, 

8 and their ancient and rich history in the highest es9 teem. 

10 TITLE I—SUPPORT FOR DIPLO11 MATIC EFFORTS RELATING 

12 TO PREVENTING IRAN FROM 

13 ACQUIRING NUCLEAR WEAP14 ONS 

15 SEC. 101. SUPPORT FOR INTERNATIONAL DIPLOMATIC EF16 FORTS. 

17 It is the sense of the Congress that— 

18 (1) the United States should use diplomatic and 

19 economic means to resolve the Iranian nuclear prob20 lem; 

21 (2) the United States should continue to support 

22 efforts in the International Atomic Energy Agency 

23 and the United Nations Security Council to bring 

24 about an end to Iran’s uranium enrichment program 

25 and its nuclear weapons program; and 


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1 (3)(A) United Nations Security Council Resolu2 tion 1737 was a useful first step toward pressing Iran 

3 to end its nuclear weapons program; and 

4 (B) in light of Iran’s continued defiance of the 

5 international community, the United Nations Secu6 rity Council should adopt additional measures 

7 against Iran, including measures to prohibit invest8 ments in Iran’s energy sector. 

9 SEC. 102. PEACEFUL EFFORTS BY THE UNITED STATES. 

10 Nothing in this Act shall be construed as authorizing 

11 the use of force or the use of the United States Armed Forces 

12 against Iran. 

13 TITLE II—ADDITIONAL BILAT14 ERAL SANCTIONS AGAINST 

15 IRAN 

16 SEC. 201. APPLICATION TO SUBSIDIARIES. 

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

18 (b), in any case in which an entity engages in an act out19 side the United States which, if committed in the United 

20 States or by a United States person, would violate Execu21 tive Order No. 12959 of May 6, 1995, Executive Order No. 

22 13059 of August 19, 1997, or any other prohibition on 

23 transactions with respect to Iran that is imposed under the 

24 International Emergency Economic Powers Act (50 U.S.C. 

25 1701 et seq.) and if that entity was created or availed of 


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1 for the purpose of engaging in such an act, the parent com2 pany of that entity shall be subject to the penalties for such 

3 violation to the same extent as if the parent company had 

4 engaged in that act. 

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

6 any act carried out under a contract or other obligation 

7 of any entity if such contract or obligation was entered into 

8 before the acquisition of such entity by the parent company 

9 unless such parent company acquired such entity knowing 

10 or having reason to know that such contract or other obliga11 tion existed or such contract or other obligation is expanded 

12 to cover additional activities beyond the terms of such con13 tract or other obligation as it existed at the time of such 

14 acquisition. 

15 (c) DEFINITIONS.—In this section— 

16 (1) the term ‘‘entity’’ means a partnership, asso17 ciation, trust, joint venture, corporation, or other or18 ganization; 

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

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

21 percent of the equity interest in that other entity and 

22 is a United States person; and 

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

24 United States citizen, any alien lawfully admitted for 

25 permanent residence to the United States, any entity 


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1 organized under the laws of the United States, or any 

2 person in the United States. 

3 SEC. 202. ADDITIONAL IMPORT SANCTIONS AGAINST IRAN. 

4 Effective 120 days after the date of the enactment of 

5 this Act— 

6 (1) goods of Iranian origin that are otherwise 

7 authorized to be imported under section 560.534 of 

8 title 31, Code of Federal Regulations, as in effect on 

9 March 5, 2007, may not be imported into the United 

10 States; and 

11 (2) activities otherwise authorized by section 

12 560.535 of title 31, Code of Federal Regulations, as 

13 in effect on March 5, 2007, are no longer authorized. 

14 SEC. 203. ADDITIONAL EXPORT SANCTIONS AGAINST IRAN. 

15 Effective on the date of the enactment of this Act— 

16 (1) licenses to export or reexport goods, services, 

17 or technology relating to civil aviation that are other18 wise authorized by section 560.528 of title 31, Code 

19 of Federal Regulations, as in effect on March 5, 2007, 

20 may not be issued, and any such license issued before 

21 such date of enactment is no longer valid; and 

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

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


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1 TITLE III—AMENDMENTS TO THE 

2 IRAN SANCTIONS ACT OF 1996 

3 SEC. 301. MULTILATERAL REGIME. 

4 Section 4(b) of the Iran Sanctions Act of 1996 (50 

5 U.S.C. 1701 note) is amended to read as follows: 

6 ‘‘(b) REPORTS TO CONGRESS.—Not later than 6 

7 months after the date of the enactment of the Iran Counter8 Proliferation Act of 2007 and every six months thereafter, 

9 the President shall transmit to the appropriate congres10 sional committees a report regarding specific diplomatic ef11 forts undertaken pursuant to subsection (a), the results of 

12 those efforts, and a description of proposed diplomatic ef13 forts pursuant to such subsection. Each report shall in14 clude— 

15 ‘‘(1) a list of the countries that have agreed to 

16 undertake measures to further the objectives of section 

17 3 with respect to Iran; 

18 ‘‘(2) a description of those measures, including— 

19 ‘‘(A) government actions with respect to 

20 public or private entities (or their subsidiaries) 

21 located in their territories, that are engaged in 

22 Iran; 

23 ‘‘(B) any decisions by the governments of 

24 these countries to rescind or continue the proviVerDate Aug 31 2005 23:42 Sep 24, 2007 Jkt 059200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6203 E:\BILLS\H1400.RH H1400

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1 sion of credits, guarantees, or other governmental 

2 assistance to these entities; and 

3 ‘‘(C) actions taken in international fora to 

4 further the objectives of section 3; 

5 ‘‘(3) a list of the countries that have not agreed 

6 to undertake measures to further the objectives of sec7 tion 3 with respect to Iran, and the reasons therefor; 

8 and 

9 ‘‘(4) a description of any memorandums of un10 derstanding, political understandings, or inter11 national agreements to which the United States has 

12 acceded which affect implementation of this section or 

13 section 5(a).’’. 

14 SEC. 302. MANDATORY SANCTIONS. 

15 Section 5(a) of the Iran Sanctions Act of 1996 (50 

16 U.S.C. 1701 note) is amended by striking ‘‘2 or more of 

17 the sanctions described in paragraphs (1) through (6) of 

18 section 6’’ and inserting ‘‘the sanction described in para19 graph (5) of section 6 and, in addition, one or more of the 

20 sanctions described in paragraphs (1), (2), (3), (4), and (6) 

21 of such section’’. 

22 SEC. 303. AUTHORITY TO IMPOSE SANCTIONS ON PRIN23 CIPAL EXECUTIVE OFFICERS. 

24 Section 5 of the Iran Sanctions Act of 1996 (50 U.S.C. 

25 1701 note) is amended by adding at the end the following: 


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1 ‘‘(g) AUTHORITY TO IMPOSE SANCTIONS ON PRIN2 CIPAL EXECUTIVE OFFICERS.— 

3 ‘‘(1) SANCTIONS UNDER SECTION 6.—In addition 

4 to the sanctions imposed under subsection (a), the 

5 President may impose any of the sanctions under sec6 tion 6 on the principal executive officer or officers of 

7 any sanctioned person, or on persons performing 

8 similar functions as such officer or officers. The Presi9 dent shall include on the list published under sub10 section (d) the name of any person on whom sanc11 tions are imposed under this paragraph. 

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

13 the sanctions imposed under paragraph (1), the Presi14 dent may block the property of any person described 

15 in paragraph (1), and prohibit transactions in such 

16 property, to the same extent as the property of a for17 eign person determined to have committed acts of ter18 rorism for purposes of Executive Order 13224 of Sep19 tember 23, 2001 (50 U.S.C. 1701 note).’’. 

20 SEC. 304. UNITED STATES EFFORTS TO PREVENT INVEST21 MENT. 

22 Section 5 of the Iran Sanctions Act of 1996 is amended 

23 by adding the following new subsection at the end: 

24 ‘‘(h) UNITED STATES EFFORTS TO ADDRESS

25 PLANNED INVESTMENT.— 


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1 ‘‘(1) REPORTS ON INVESTMENT ACTIVITY.—Not 

2 later than January 30, 2008, and every 6 months 

3 thereafter, the President shall transmit to the Com4 mittee on Foreign Affairs of the House of Representa5 tives and the Committee on Foreign Relations of the 

6 Senate a report on investment and pre-investment ac7 tivity, by any person or entity, that could contribute 

8 to the enhancement of Iran’s ability to develop petro9 leum resources in Iran. For each such activity, the 

10 President shall provide a description of the activity, 

11 any information regarding when actual investment 

12 may commence, and what steps the United States has 

13 taken to respond to such activity. 

14 ‘‘(2) DEFINITION.—In this subsection— 

15 ‘‘(A) the term ‘investment’ includes the ex16 tension by a financial institution of credit or 

17 other financing to a person for that person’s in18 vestment; and 

19 ‘‘(B) the term ‘pre-investment activity’ 

20 means any activity indicating an intent to make 

21 an investment, including a memorandum of un22 derstanding among parties indicating such an 

23 intent.’’ 


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1 SEC. 305. CLARIFICATION AND EXPANSION OF DEFINI2 TIONS. 

3 (a) PERSON.—Section 14(13)(B) of the Iran Sanctions 

4 Act of 1996 (50 U.S.C. 1701 note) is amended to read as 

5 follows: 

6 ‘‘(B)(i) a corporation, business association, 

7 partnership, society, trust, financial institution, 

8 insurer, underwriter, guarantor, and any other 

9 business organization; 

10 ‘‘(ii) any foreign subsidiary of any entity 

11 described in clause (i); and 

12 ‘‘(iii) any nongovernmental entity oper13 ating as a business enterprise, such as an export 

14 credit agency; and’’. 

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

16 Iran Sanctions Act of 1996 (50 U.S.C. 1701 note) is amend17 ed by inserting after ‘‘petroleum’’ the second place it ap18 pears the following: ‘‘, petroleum refining capacity, lique19 fied natural gas, the sale of oil tankers or liquefied natural 

20 gas tankers,’’. 

21 SEC. 306. REMOVAL OF WAIVER AUTHORITY. 

22 (a) SIX-MONTH WAIVER AUTHORITY.—Section 4 of the 

23 Iran Sanctions Act of 1996 (50 U.S.C. 1701 note) is amend24 ed— 


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1 (1) in subsection (d)(1), by striking ‘‘except those 

2 with respect to which the President has exercised the 

3 waiver authority of subsection (c)’’; 

4 (2) by striking subsection (c); and 

5 (3) by redesignating subsections (d), (e), and (f) 

6 as subsections (c), (d), and (e), respectively. 

7 (b) GENERAL WAIVER AUTHORITY.—Section 9 of the 

8 Iran Sanctions Act of 1996 (50 U.S.C. 1701 note) is amend9 ed by striking subsection (c). 

10 (c) CONSTRUCTION.—The amendments made by this 

11 section shall not be construed to affect any exercise of the 

12 authority of section 4(c) or section 9(c) of the Iran Sanc13 tions Act of 1996 as in effect on the day before the date 

14 of the enactment of this Act. 

15 TITLE IV—ADDITIONAL 

16 MEASURES 

17 SEC. 401. ADDITIONS TO TERRORISM AND OTHER LISTS. 

18 (a) DETERMINATIONS AND REPORT.—Not later than 

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

20 President shall— 

21 (1) determine whether the Islamic Revolutionary 

22 Guards Corps should be— 

23 (A) designated as a foreign terrorist organi24 zation under section 219 of the Immigration and 

25 Nationality Act (8 U.S.C. 1189); 


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1 (B) placed on the list of specially designated 

2 global terrorists; and 

3 (C) placed on the list of weapons of mass 

4 destruction proliferators and their supporters; 

5 and 

6 (2) report the determinations under paragraph 

7 (1) to the Committee on Foreign Affairs of the House 

8 of Representatives and the Committee on Foreign Re9 lations of the Senate, including, if the President de10 termines that such Corps should not be so designated 

11 or placed on either such list, the justification for the 

12 President’s determination. 

13 (b) EXTENSION OF AUTHORITY.—The President may 

14 block all property and interests in property of the following 

15 persons, to the same extent as property and interests in 

16 property of a foreign person determined to have committed 

17 acts of terrorism for purposes of Executive Order 13224 of 

18 September 21, 2001 (50 U.S.C. 1701 note) may be blocked: 

19 (1) Persons who assist or provide financial, ma20 terial, or technological support for, or financial or 

21 other services to or in support of, the International 

22 Revolutionary Guards Corps (IRGC) or entities 

23 owned or effectively controlled by the IRGC. 

24 (2) Persons otherwise associated with the IRGC 

25 or entities referred to in paragraph (1). 


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1 (c) DEFINITIONS.—In this section— 

2 (1) the term ‘‘specially designated global ter3 rorist’’ means any person included on the Annex to 

4 Executive Order 13224, of September 23, 2001, and 

5 any other person identified under section 1 of that 

6 Executive order whose property and interests in prop7 erty are blocked by that section; and 

8 (2) the term ‘‘weapons of mass destruction 

9 proliferators and their supporters’’ means any person 

10 included on the Annex to Executive Order 13382, of 

11 June 28, 2005, and any other person identified under 

12 section 1 of that Executive order whose property and 

13 interests in property are blocked by that section. 

14 SEC. 402. INCREASED CAPACITY FOR EFFORTS TO COMBAT 

15 UNLAWFUL OR TERRORIST FINANCING. 

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

17 and Financial Intelligence of the Department of Treasury, 

18 which includes the Office of Foreign Assets Control and the 

19 Financial Crimes Enforcement Center, is critical to ensur20 ing that the international financial system is not used for 

21 purposes of supporting terrorism and developing weapons 

22 of mass destruction. 

23 (b) AUTHORIZATION.—There is authorized for the Sec24 retary of the Treasury $59,466,000 for fiscal year 2008 and 

25 such sums as may be necessary for each of the fiscal years 


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1 2009 and 2010 for the Office of Terrorism and Financial 

2 Intelligence. 

3 (c) AUTHORIZATION AMENDMENT.—Section 310(d)(1) 

4 of title 31, United States Code, is amended by striking 

5 ‘‘such sums as may be necessary for fiscal years 2002, 2003, 

6 2004, and 2005’’ and inserting ‘‘$85,844,000 for fiscal year 

7 2008 and such sums as may be necessary for each of the 

8 fiscal years 2009 and 2010’’. 

9 SEC. 403. EXCHANGE PROGRAMS WITH THE PEOPLE OF 

10 IRAN. 

11 (a) SENSE OF CONGRESS.—It is the sense of the Con12 gress that the United States should seek to enhance its 

13 friendship with the people of Iran, particularly by identi14 fying young people of Iran to come to the United States 

15 under United States exchange programs. 

16 (b) EXCHANGE PROGRAMS AUTHORIZED.—The Presi17 dent is authorized to carry out exchange programs with the 

18 people of Iran, particularly the young people of Iran. Such 

19 programs shall be carried out to the extent practicable in 

20 a manner consistent with the eligibility for assistance re21 quirements specified in section 302(b) of the Iran Freedom 

22 Support Act (Public Law 109–293). 

23 (c) AUTHORIZATION.—Of the amounts available to the 

24 Department of State for ‘‘Educational and Cultural Ex25 changes’’ to carry out the Mutual Educational and Cultural 


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1 Exchange Act of 1961, there is authorized to be appro2 priated to the President to carry out this section the sum 

3 of $10,000,000 for fiscal year 2008. 

4 SEC. 404. REDUCING CONTRIBUTIONS TO THE WORLD 

5 BANK. 

6 The President of the United States shall reduce the 

7 total amount otherwise payable on behalf of the United 

8 States to the International Bank for Reconstruction and 

9 Development for each fiscal year by the percentage rep10 resented by— 

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

12 Bank to entities in Iran, or for projects and activities 

13 in Iran, in the then preceding fiscal year; divided by 

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

15 Bank to all entities, or for all projects and activities, 

16 in the then preceding fiscal year. 

17 SEC. 405. RESTRICTIONS ON NUCLEAR COOPERATION WITH 

18 COUNTRIES ASSISTING THE NUCLEAR PRO19 GRAM OF IRAN. 

20 (a) IN GENERAL.—Notwithstanding any other provi21 sion of law or any international agreement, no agreement 

22 for cooperation between the United States and the govern23 ment of any country that is assisting the nuclear program 

24 of Iran or transferring advanced conventional weapons or 

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


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1 Congress pursuant to section 123 of the Atomic Energy Act 

2 of 1954 (42 U.S.C. 2153), no such agreement may enter 

3 into force with such country, no license may be issued for 

4 export directly or indirectly to such country of any nuclear 

5 material, facilities, components, or other goods, services, or 

6 technology that would be subject to such agreement, and no 

7 approval may be given for the transfer or retransfer directly 

8 or indirectly to such country of any nuclear material, fa9 cilities, components, or other goods, services, or technology 

10 that would be subject to such agreement, until the President 

11 determines and reports to the Committee on Foreign Rela12 tions of the Senate and the Committee on Foreign Affairs 

13 of the House of Representatives that— 

14 (1) Iran has ceased its efforts to design, develop, 

15 or acquire a nuclear explosive device or related mate16 rials or technology; or 

17 (2) the government of the country that is assist18 ing the nuclear program of Iran or transferring ad19 vanced conventional weapons or missiles to Iran— 

20 (A) has suspended all nuclear assistance to 

21 Iran and all transfers of advanced conventional 

22 weapons and missiles to Iran; and 

23 (B) is committed to maintaining that sus24 pension until Iran has implemented measures 


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1 that would permit the President to make the de2 termination described in paragraph (1). 

3 (b) CONSTRUCTION.—The restrictions in subsection 

4 (a)— 

5 (1) shall apply in addition to all other applica6 ble procedures, requirements, and restrictions con7 tained in the Atomic Energy Act of 1954 and other 

8 laws; and 

9 (2) shall not be construed as affecting the valid10 ity of agreements for cooperation that are in effect on 

11 the date of the enactment of this Act. 

12 (c) DEFINITIONS.—In this section: 

13 (1) AGREEMENT FOR COOPERATION.—The term 

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

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

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

17 (2) ASSISTING THE NUCLEAR PROGRAM OF

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

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

20 government, or by a person subject to the jurisdiction 

21 of a government with the knowledge and acquiescence 

22 of that government, of goods, services, or technology 

23 listed on the Nuclear Suppliers Group Guidelines for 

24 the Export of Nuclear Material, Equipment and Tech25 nology (published by the International Atomic Energy 


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1 Agency as Information Circular INFCIRC/254/Rev. 

2 3/Part 1, and subsequent revisions), or the Nuclear 

3 Suppliers Group Guidelines for Transfers of Nuclear4 Related Dual-Use Equipment, Material, and Related 

5 Technology (published by the International Atomic 

6 Energy Agency as Information Circular INFCIR/254/ 

7 Rev. 3/Part 2, and subsequent revisions). 

8 (3) COUNTRY THAT IS ASSISTING THE NUCLEAR

9 PROGRAM OF IRAN OR TRANSFERRING ADVANCED CON10 VENTIONAL WEAPONS OR MISSILES TO IRAN.—The 

11 term ‘‘country that is assisting the nuclear program 

12 of Iran or transferring advanced conventional weap13 ons or missiles to Iran’’ means— 

14 (A) the Russia Federation; and 

15 (B) any other country determined by the 

16 President to be assisting the nuclear program of 

17 Iran or transferring advanced conventional 

18 weapons or missiles to Iran. 

19 (4) TRANSFERRING ADVANCED CONVENTIONAL

20 WEAPONS OR MISSILES TO IRAN.—The term ‘‘transfer21 ring advanced conventional weapons or missiles to 

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

23 government, or by a person subject to the jurisdiction 

24 of a government with the knowledge and acquiescence 


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1 of that government, of goods, services, or technology 

2 listed on— 

3 (A) the Wassenaar Arrangement list of 

4 Dual Use Goods and Technologies and Munitions 

5 list of July 12, 1996, and subsequent revisions; 

6 or 

7 (B) the Missile Technology Control Regime 

8 Equipment and Technology Annex of June 11, 

9 1996, and subsequent revisions. 

10 SEC. 406. ELIMINATION OF CERTAIN TAX INCENTIVES FOR 

11 OIL COMPANIES INVESTING IN IRAN. 

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

13 Internal Revenue Code of 1986 (relating to amortization 

14 of geological and geophysical expenditures) is amended by 

15 adding at the end the following new paragraph: 

16 ‘‘(6) DENIAL WHEN IRAN SANCTIONS IN EF17 FECT.— 

18 ‘‘(A) IN GENERAL.—If sanctions are im19 posed under section 5(a) of the Iran Sanctions 

20 Act of 1996 (relating to sanctions with respect to 

21 the development of petroleum resources of Iran) 

22 on any member of an expanded affiliated group 

23 the common parent of which is a foreign cor24 poration, paragraph (1) shall not apply to any 

25 expense paid or incurred by any such member in 


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1 any period during which the sanctions are in ef2 fect. 

3 ‘‘(B) EXPANDED AFFILIATED GROUP.—For 

4 purposes of subparagraph (A), the term ‘ex5 panded affiliated group’ means an affiliated 

6 group as defined in section 1504(a), deter7 mined— 

8 ‘‘(i) by substituting ‘more than 50 per9 cent’ for ‘at least 80 percent’ each place it 

10 appears, and 

11 ‘‘(ii) without regard to paragraphs (2), 

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

13 (b) EFFECTIVE DATE.—The amendment made by sub14 section (a) shall apply to expense paid or incurred on or 

15 after January 1, 2007. 

16 TITLE V—MISCELLANEOUS 

17 PROVISIONS 

18 SEC. 501. TERMINATION. 

19 (a) TERMINATION.—The restrictions provided in sec20 tions 203, 404, and 405 shall cease to be effective with re21 spect to Iran om the date on which the President determines 

22 and certifies to the appropriate congressional committees 

23 that Iran— 

24 (1) has ceased its efforts to design, develop, man25 ufacture, or acquire— 


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1 (A) a nuclear explosive device or related 

2 materials and technology; 

3 (B) chemical and biological weapons; and 

4 (C) ballistic missiles and ballistic missile 

5 launch technology; 

6 (2) has been removed from the list of countries 

7 the governments of which have been determined, for 

8 purposes of section 6(j) of the Export Administration 

9 Act of 1979 (50 U.S.C. 2405(j)), section 620A of the 

10 Foreign Assistance Act of 1961, section 40 of the 

11 Arms Export Control Act, or any other provision of 

12 law, to have repeatedly provided support for acts of 

13 international terrorism; and 

14 (3) poses no significant threat to United States 

15 national security, interests, or allies. 

16 (b) DEFINITION.—In subsection (a), the term ‘‘appro17 priate congressional committees’’ means the Committee on 

18 Foreign Affairs of the House of Representatives and the 

19 Committee on Foreign Relations of the Senate. 


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Union Calendar No. 215 

110TH CONGRESS 

1ST SESSION H. R. 1400 

[Report No. 110

–294, Part 1] 

A BILL 

To enhance United States diplomatic efforts with 

sanctions against Iran, and for other purposes. respect to Iran by imposing additional economic 

SEPTEMBER 24, 2007 

Committees on Ways and Means, Financial Services, 

printed House on the State of the Union and ordered to be discharged; committed to the Committee of the Whole Oversight and Government Reform, and the Judiciary 


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