II 

Calendar No. 215 

111TH CONGRESS 

1ST SESSION S. 2799 

[Report No. 111–99] 

To expand the Iran Sanctions Act of 1996, to provide for the divestment 

of assets in Iran by State and local governments and other entities, 

to identify locations of concern with respect to transshipment, reexportation, or diversion of certain sensitive items to Iran, and for other 

purposes. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 19, 2009 

Mr. DODD, from the Committee on Banking, Housing, and Urban Affairs, reported the following original bill; which was read twice and placed on the 

calendar 

A BILL 

To expand the Iran Sanctions Act of 1996, to provide for 

the divestment of assets in Iran by State and local governments and other entities, to identify locations of concern with respect to transshipment, reexportation, or diversion of certain sensitive items to 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, 


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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

3 ‘‘Comprehensive Iran Sanctions, Accountability, and Di4 vestment Act of 2009’’. 

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

6 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Findings. 

Sec. 3. Sense of Congress regarding illicit nuclear activities and violations of 

human rights in Iran. 

TITLE I—SANCTIONS 

Sec. 101. Definitions. 

Sec. 102. Expansion of sanctions under the Iran Sanctions Act of 1996. 

Sec. 103. Economic sanctions relating to Iran. 

Sec. 104. Liability of parent companies for violations of sanctions by foreign 

subsidiaries. 

Sec. 105. Prohibition on procurement contracts with persons that export sensitive technology to Iran. 

Sec. 106. Increased capacity for efforts to combat unlawful or terrorist financing. 

Sec. 107. Reporting requirements. 

Sec. 108. Sense of Congress regarding the imposition of sanctions on the Central Bank of Iran. 

Sec. 109. Policy of the United States regarding Iran’s Revolutionary Guard 

Corps and its affiliates. 

Sec. 110. Policy of the United States with respect to Iran and Hezbollah. 

Sec. 111. Sense of Congress regarding the imposition of multilateral sanctions 

with respect to Iran. 

TITLE II—DIVESTMENT FROM CERTAIN COMPANIES THAT 

INVEST IN IRAN 

Sec. 201. Definitions. 

Sec. 202. Authority of State and local governments to divest from certain companies that invest in Iran. 

Sec. 203. Safe harbor for changes of investment policies by asset managers. 

Sec. 204. Sense of Congress regarding certain ERISA plan investments. 

TITLE III—PREVENTION OF TRANSSHIPMENT, REEXPORTATION, 

OR DIVERSION OF SENSITIVE ITEMS TO IRAN 

Sec. 301. Definitions. 

Sec. 302. Identification of locations of concern with respect to transshipment, 

reexportation, or diversion of certain items to Iran. 

Sec. 303. Destinations of Possible Diversion Concern and Destinations of Diversion Concern. 

Sec. 304. Report on expanding diversion concern system to countries other than 

Iran. 


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TITLE IV—EFFECTIVE DATE; SUNSET 

Sec. 401. Effective date; sunset. 

1 SEC. 2. FINDINGS. 

2 Congress makes the following findings: 

3 (1) The illicit nuclear activities of the Govern4 ment of Iran and its support for international ter5 rorism represent threats to the security of the 

6 United States, its strong ally Israel, and other allies 

7 of the United States around the world. 

8 (2) The United States and other responsible 

9 countries have a vital interest in working together to 

10 prevent the Government of Iran from acquiring a 

11 nuclear weapons capability. 

12 (3) The International Atomic Energy Agency 

13 has repeatedly called attention to Iran’s illicit nu14 clear activities and, as a result, the United Nations 

15 Security Council has adopted a range of sanctions 

16 designed to encourage the Government of Iran to 

17 cease those activities and comply with its obligations 

18 under the Treaty on Non-Proliferation of Nuclear 

19 Weapons, done at Washington, London, and Moscow 

20 July 1, 1968, and entered into force March 5, 1970 

21 (commonly known as the ‘‘Nuclear Non-Proliferation 

22 Treaty’’). 

23 (4) The serious and urgent nature of the threat 

24 from Iran demands that the United States work toVerDate Nov 24 2008 00:07 Nov 20, 2009 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S2799.RS S2799

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1 gether with its allies to prevent Iran from acquiring 

2 a nuclear weapons capability. 

3 (5) The United States and its major European 

4 allies, including the United Kingdom, France, and 

5 Germany, have advocated that sanctions be strength6 ened should international diplomatic efforts fail to 

7 achieve verifiable suspension of Iran’s uranium en8 richment program and an end to its illicit nuclear 

9 activities. 

10 (6) There is an increasing interest by States, 

11 local governments, educational institutions, and pri12 vate institutions to seek to disassociate themselves 

13 from companies that conduct business activities in 

14 the energy sector of Iran, since such business activi15 ties may directly or indirectly support the efforts of 

16 the Government of Iran to achieve a nuclear weap17 ons capability. 

18 (7) Black market proliferation networks con19 tinue to flourish in the Middle East, allowing coun20 tries like Iran to gain access to sensitive dual-use 

21 technologies. 

22 (8) The Government of Iran continues to en23 gage in serious, systematic, and ongoing violations of 

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1 tions. Such violations have increased in the after2 math of the presidential election in Iran on June 12, 

3 2009. 

4 SEC. 3. SENSE OF CONGRESS REGARDING ILLICIT NU5 CLEAR ACTIVITIES AND VIOLATIONS OF 

6 HUMAN RIGHTS IN IRAN. 

7 It is the sense of Congress that— 

8 (1) international diplomatic efforts to address 

9 Iran’s illicit nuclear efforts and support for inter10 national terrorism are more likely to be effective if 

11 the President is empowered with the explicit author12 ity to impose additional sanctions on the Govern13 ment of Iran; 

14 (2) additional measures should be adopted by 

15 the United States to prevent the diversion and 

16 transshipment of sensitive dual-use technologies to 

17 Iran; 

18 (3) the concerns of the United States regarding 

19 Iran are strictly the result of the actions of the Gov20 ernment of Iran; 

21 (4) the people of the United States— 

22 (A) have a long history of friendship and 

23 exchange with the people of Iran; 


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1 (B) regret that developments in recent dec2 ades have created impediments to that friend3 ship; 

4 (C) hold the people of Iran, their culture, 

5 and their ancient and rich history in the highest 

6 esteem; and 

7 (D) remain deeply concerned about con8 tinuing human rights abuses in Iran; 

9 (5) the President should— 

10 (A) continue to press the Government of 

11 Iran to respect the internationally recognized 

12 human rights and religious freedoms of its citi13 zens; 

14 (B) identify the officials of the Government 

15 of Iran that are responsible for continuing and 

16 severe violations of human rights and religious 

17 freedom in Iran; and 

18 (C) take appropriate measures to respond 

19 to such violations, including by— 

20 (i) prohibiting officials the President 

21 identifies as being responsible for such vio22 lations from entry into the United States; 

23 and 

24 (ii) freezing the assets of those offi25 cials; and 


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1 (6) additional funding should be provided to the 

2 Secretary of State to document, collect, and dissemi3 nate information about human rights abuses in Iran, 

4 including serious abuses that have taken place since 

5 the presidential election in Iran conducted on June 

6 12, 2009. 

7 TITLE I—SANCTIONS 

8 SEC. 101. DEFINITIONS. 

9 In this title: 

10 (1) AGRICULTURAL COMMODITY.—The term 

11 ‘‘agricultural commodity’’ has the meaning given 

12 that term in section 102 of the Agricultural Trade 

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

14 (2) APPROPRIATE CONGRESSIONAL COMMIT15 TEES.—The term ‘‘appropriate congressional com16 mittees’’ has the meaning given that term in section 

17 14(2) of the Iran Sanctions Act of 1996 (Public 

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

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

20 agency’’ has the meaning given that term in section 

21 4 of the Office of Federal Procurement Policy Act 

22 (41 U.S.C. 403). 

23 (4) FAMILY MEMBER.—The term ‘‘family mem24 ber’’ means, with respect to an individual, the 


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1 spouse, children, grandchildren, or parents of the in2 dividual. 

3 (5) INFORMATION AND INFORMATIONAL MATE4 RIALS.—The term ‘‘information and informational 

5 materials’’ includes publications, films, posters, pho6 nograph records, photographs, microfilms, micro7 fiche, tapes, compact disks, CD ROMs, artworks, 

8 and news wire feeds. 

9 (6) INVESTMENT.—The term ‘‘investment’’ has 

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

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

12 50 U.S.C. 1701 note). 

13 (7) IRANIAN DIPLOMATS AND REPRESENTA14 TIVES OF OTHER GOVERNMENT AND MILITARY OR

15 QUASI-GOVERNMENTAL INSTITUTIONS OF IRAN.— 

16 The term ‘‘Iranian diplomats and representatives of 

17 other government and military or quasi-govern18 mental institutions of Iran’’ has the meaning given 

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

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

21 note). 

22 (8) MEDICAL DEVICE.—The term ‘‘medical de23 vice’’ has the meaning given the term ‘‘device’’ in 

24 section 201 of the Federal Food, Drug, and Cos25 metic Act (21 U.S.C. 321). 


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1 (9) MEDICINE.—The term ‘‘medicine’’ has the 

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

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

4 321). 

5 SEC. 102. EXPANSION OF SANCTIONS UNDER THE IRAN 

6 SANCTIONS ACT OF 1996. 

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

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

9 is amended by striking subsection (a) and inserting the 

10 following: 

11 ‘‘(a) SANCTIONS WITH RESPECT TO THE DEVELOP12 MENT OF PETROLEUM RESOURCES OF IRAN, PRODUC13 TION OF REFINED PETROLEUM PRODUCTS IN IRAN, AND

14 EXPORTATION OF REFINED PETROLEUM PRODUCTS TO

15 IRAN.— 

16 ‘‘(1) DEVELOPMENT OF PETROLEUM RE17 SOURCES OF IRAN.— 

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

19 subsection (f), the President shall impose 2 or 

20 more of the sanctions described in paragraphs 

21 (1) through (6) of section 6(a) with respect to 

22 a person if the President determines that the 

23 person, with actual knowledge, on or after the 

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1 tions, Accountability, and Divestment Act of 

2 2009— 

3 ‘‘(i) makes an investment described in 

4 subparagraph (B) of $20,000,000 or more; 

5 or 

6 ‘‘(ii) makes a combination of invest7 ments described in subparagraph (B) in a 

8 12-month period if each such investment is 

9 at least $5,000,000 and such investments 

10 equal or exceed $20,000,000 in the aggre11 gate. 

12 ‘‘(B) INVESTMENT DESCRIBED.—An in13 vestment described in this subparagraph is an 

14 investment that directly and significantly con15 tributes to the enhancement of Iran’s ability to 

16 develop petroleum resources. 

17 ‘‘(2) PRODUCTION OF REFINED PETROLEUM

18 PRODUCTS.— 

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

20 subsection (f), the President shall impose the 

21 sanctions described in section 6(b) (in addition 

22 to any other sanctions imposed under this sub23 section) with respect to a person if the Presi24 dent determines that the person, with actual 

25 knowledge, on or after the effective date of the 


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1 Comprehensive Iran Sanctions, Accountability, 

2 and Divestment Act of 2009, sells, leases, or 

3 provides to Iran any goods, services, technology, 

4 information, or support described in subpara5 graph (B)— 

6 ‘‘(i) any of which has a fair market 

7 value of $200,000 or more; or 

8 ‘‘(ii) that, during a 12-month period, 

9 have an aggregate fair market value of 

10 $1,000,000 or more. 

11 ‘‘(B) GOODS, SERVICES, TECHNOLOGY, IN12 FORMATION, OR SUPPORT DESCRIBED.—Goods, 

13 services, technology, information, or support de14 scribed in this subparagraph are goods, serv15 ices, technology, information, or support that 

16 could directly and significantly facilitate the 

17 maintenance or expansion of Iran’s domestic 

18 production of refined petroleum products, in19 cluding any assistance with respect to construc20 tion, modernization, or repair of petroleum re21 fineries. 

22 ‘‘(3) EXPORTATION OF REFINED PETROLEUM

23 PRODUCTS TO IRAN.— 

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

25 subsection (f), the President shall impose the 


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1 sanctions described in section 6(b) (in addition 

2 to any other sanctions imposed under this sub3 section) with respect to a person if the Presi4 dent determines that the person, with actual 

5 knowledge, on or after the effective date of the 

6 Comprehensive Iran Sanctions, Accountability, 

7 and Divestment Act of 2009— 

8 ‘‘(i) provides Iran with refined petro9 leum products— 

10 ‘‘(I) that have a fair market 

11 value of $200,000 or more; or 

12 ‘‘(II) that, during a 12-month pe13 riod, have an aggregate fair market 

14 value of $1,000,000 or more; or 

15 ‘‘(ii) sells, leases, or provides to Iran 

16 any goods, services, technology, informa17 tion, or support described in subparagraph 

18 (B)— 

19 ‘‘(I) any of which has a fair mar20 ket value of $200,000 or more; or 

21 ‘‘(II) that, during a 12-month pe22 riod, have an aggregate fair market 

23 value of $1,000,000 or more. 

24 ‘‘(B) GOODS, SERVICES, TECHNOLOGY, IN25 FORMATION, OR SUPPORT DESCRIBED.—Goods, 


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1 services, technology, information, or support de2 scribed in this subparagraph are goods, serv3 ices, technology, or support that could directly 

4 and significantly contribute to the enhancement 

5 of Iran’s ability to import refined petroleum 

6 products, including— 

7 ‘‘(i) underwriting or otherwise pro8 viding insurance or reinsurance for the 

9 sale, lease, or provision of such goods, 

10 services, technology, information, or sup11 port; 

12 ‘‘(ii) financing or brokering such sale, 

13 lease, or provision; or 

14 ‘‘(iii) providing ships or shipping serv15 ices to deliver refined petroleum products 

16 to Iran.’’. 

17 (b) DESCRIPTION OF SANCTIONS.—Section 6 of such 

18 Act is amended— 

19 (1) by striking ‘‘The sanctions to be imposed on 

20 a sanctioned person under section 5 are as follows:’’ 

21 and inserting the following: 

22 ‘‘(a) IN GENERAL.—The sanctions to be imposed on 

23 a sanctioned person under subsections (a)(1) and (b) of 

24 section 5 are as follows:’’; and 

25 (2) by adding at the end the following: 


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1 ‘‘(b) ADDITIONAL SANCTIONS.—The sanctions to be 

2 imposed on a sanctioned person under paragraphs (2) and 

3 (3) of section 5(a) are as follows: 

4 ‘‘(1) FOREIGN EXCHANGE.—The President 

5 shall, pursuant to such regulations as the President 

6 may prescribe, prohibit any transactions in foreign 

7 exchange by the sanctioned person. 

8 ‘‘(2) BANKING TRANSACTIONS.—The President 

9 shall, pursuant to such regulations as the President 

10 may prescribe, prohibit any transfers of credit or 

11 payments between, by, through, or to any financial 

12 institution, to the extent that such transfers or pay13 ments involve any interest of the sanctioned person. 

14 ‘‘(3) PROPERTY TRANSACTIONS.—The Presi15 dent shall, pursuant to such regulations as the 

16 President may prescribe and subject to the jurisdic17 tion of the United States, prohibit any person 

18 from— 

19 ‘‘(A) acquiring, holding, withholding, 

20 using, transferring, withdrawing, transporting, 

21 importing, or exporting any property with re22 spect to which the sanctioned person has any 

23 interest; 


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1 ‘‘(B) dealing in or exercising any right, 

2 power, or privilege with respect to such prop3 erty; or 

4 ‘‘(C) conducting any transactions involving 

5 such property.’’. 

6 (c) REPORT RELATING TO PRESIDENTIAL WAIV7 ER.—Section 9(c)(2) of such Act is amended by striking 

8 subparagraph (C) and inserting the following: 

9 ‘‘(C) an estimate of the significance of the 

10 conduct of the person in contributing to the 

11 ability of Iran to, as the case may be— 

12 ‘‘(i) develop petroleum resources, 

13 produce refined petroleum products, or im14 port refined petroleum products; or 

15 ‘‘(ii) acquire or develop— 

16 ‘‘(I) chemical, biological, or nu17 clear weapons or related technologies; 

18 or 

19 ‘‘(II) destabilizing numbers and 

20 types of advanced conventional weap21 ons; and’’. 

22 (d) CLARIFICATION AND EXPANSION OF DEFINI23 TIONS.—Section 14 of such Act is amended— 

24 (1) in paragraph (13)(B)— 


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1 (A) by inserting ‘‘financial institution, in2 surer, underwriter, guarantor, and any other 

3 business organization, including any foreign 

4 subsidiary, parent, or affiliate thereof,’’ after 

5 ‘‘trust,’’; and 

6 (B) by inserting ‘‘, such as an export cred7 it agency’’ before the semicolon at the end; 

8 (2) in paragraph (14), by striking ‘‘petroleum 

9 and natural gas resources’’ and inserting ‘‘petro10 leum, refined petroleum products, oil or liquefied 

11 natural gas, natural gas resources, oil or liquefied 

12 natural gas tankers, and products used to construct 

13 or maintain pipelines used to transport oil or lique14 fied natural gas’’; 

15 (3) by redesignating paragraphs (15) and (16) 

16 as paragraphs (16) and (17), respectively; and 

17 (4) by inserting after paragraph (14) the fol18 lowing: 

19 ‘‘(15) REFINED PETROLEUM PRODUCTS.—The 

20 term ‘refined petroleum products’ means diesel, gas21 oline, jet fuel (including naphtha-type and kerosene22 type jet fuel), and aviation gasoline.’’. 

23 (e) CONFORMING AMENDMENT.—Section 4 of such 

24 Act is amended— 


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1 (1) in subsection (b)(2), by striking ‘‘(in addi2 tion to that provided in subsection (d))’’; 

3 (2) by striking subsection (d); and 

4 (3) by redesignating subsections (e) and (f) as 

5 subsections (d) and (e), respectively. 

6 SEC. 103. ECONOMIC SANCTIONS RELATING TO IRAN. 

7 (a) IN GENERAL.—Notwithstanding any other provi8 sion of law, and in addition to any other sanction in effect, 

9 beginning on the date that is 15 days after the effective 

10 date of this Act, the economic sanctions described in sub11 section (b) shall apply with respect to Iran. 

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

13 subsection are the following: 

14 (1) PROHIBITION ON IMPORTS.— 

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

16 subparagraph (B), no article of Iranian origin 

17 may be imported directly or indirectly into the 

18 United States. 

19 (B) EXCEPTION.—The prohibition in sub20 paragraph (A) does not apply to imports from 

21 Iran of information and informational mate22 rials. 

23 (2) PROHIBITION ON EXPORTS.— 

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

25 subparagraph (B), no article of United States 


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1 origin may be exported directly or indirectly to 

2 Iran. 

3 (B) EXCEPTIONS.—The prohibition in sub4 paragraph (A) does not apply to exports to Iran 

5 of— 

6 (i) agricultural commodities, food, 

7 medicine, or medical devices; 

8 (ii) articles exported to Iran to pro9 vide humanitarian assistance to the people 

10 of Iran; 

11 (iii) except as provided in subpara12 graph (C), information or informational 

13 materials; 

14 (iv) goods, services, or technologies 

15 necessary to ensure the safe operation of 

16 commercial passenger aircraft produced in 

17 the United States if the exportation of 

18 such goods, services, or technologies is ap19 proved by the Secretary of the Treasury, in 

20 consultation with the Secretary of Com21 merce, pursuant to regulations promul22 gated by the Secretary of the Treasury re23 garding the exportation of such goods, 

24 services, or technologies, if appropriate; or 


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1 (v) goods, services, or technologies 

2 that— 

3 (I) are provided to the Inter4 national Atomic Energy Agency and 

5 are necessary to support activities of 

6 that Agency in Iran; 

7 (II) are necessary to support ac8 tivities, including the activities of non9 governmental organizations, relating 

10 to promoting democracy in Iran; or 

11 (III) the President determines to 

12 be necessary to the national interest 

13 of the United States. 

14 (C) SPECIAL RULE WITH RESPECT TO IN15 FORMATION AND INFORMATIONAL MATE16 RIALS.—Notwithstanding subparagraph (B)(iii), 

17 information and informational materials of 

18 United States origin may not be exported di19 rectly or indirectly to Iran— 

20 (i) if the exportation of such informa21 tion or informational materials is otherwise 

22 controlled— 

23 (I) under section 5 of the Export 

24 Administration Act of 1979 (50 

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1 suant to the International Emergency 

2 Economic Powers Act (50 U.S.C. 

3 1701 et seq.)); or 

4 (II) under section 6 of that Act 

5 (50 U.S.C. App. 2405), to the extent 

6 that such controls promote the non7 proliferation or antiterrorism policies 

8 of the United States; or 

9 (ii) if such information or informa10 tional materials are information or infor11 mational materials with respect to which 

12 acts are prohibited by chapter 37 of title 

13 18, United States Code. 

14 (3) FREEZING ASSETS.— 

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

16 United States has access to the names of per17 sons in Iran, including Iranian diplomats and 

18 representatives of other government and mili19 tary or quasi-governmental institutions of Iran 

20 (including Iran’s Revolutionary Guard Corps 

21 and its affiliates), that satisfy the criteria for 

22 designation with respect to the imposition of 

23 sanctions under the authority of the Inter24 national Emergency Economic Powers Act (50 

25 U.S.C. 1701 et seq.) or are otherwise subject to 


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1 sanctions under any other provision of law, the 

2 President shall take such action as may be nec3 essary to freeze, as soon as possible, the funds 

4 and other assets belonging to anyone so named 

5 and any family members or associates of those 

6 so named to whom assets or property of those 

7 so named were transferred on or after January 

8 1, 2009. The action described in the preceding 

9 sentence includes requiring any United States 

10 financial institution that holds funds and assets 

11 of a person so named to report promptly to the 

12 Office of Foreign Assets Control information 

13 regarding such funds and assets. 

14 (B) ASSET REPORTING REQUIREMENT.— 

15 Not later than 14 days after a decision is made 

16 to freeze the property or assets of any person 

17 under this paragraph, the President shall report 

18 the name of such person to the appropriate con19 gressional committees. Such a report may con20 tain a classified annex. 

21 (4) UNITED STATES GOVERNMENT CON22 TRACTS.—The head of an executive agency may not 

23 procure, or enter into a contract for the procurement 

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

25 the criteria for the imposition of sanctions under 


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1 section 5 of the Iran Sanctions Act of 1996 (Public 

2 Law 104–172; 50 U.S.C. 1701 note). 

3 (c) WAIVER.—The President may waive the applica4 tion of the sanctions described in subsection (b) if the 

5 President— 

6 (1) determines that such a waiver is in the na7 tional interest of the United States; and 

8 (2) submits to the appropriate congressional 

9 committees a report describing the reasons for the 

10 determination. 

11 SEC. 104. LIABILITY OF PARENT COMPANIES FOR VIOLA12 TIONS OF SANCTIONS BY FOREIGN SUBSIDI13 ARIES. 

14 (a) DEFINITIONS.—In this section: 

15 (1) ENTITY.—The term ‘‘entity’’ means a part16 nership, association, trust, joint venture, corpora17 tion, or other organization. 

18 (2) OWN OR CONTROL.—The term ‘‘own or con19 trol’’ means, with respect to an entity— 

20 (A) to hold more than 50 percent of the 

21 equity interest by vote or value in the entity; 

22 (B) to hold a majority of seats on the 

23 board of directors of the entity; or 

24 (C) to otherwise control the actions, poli25 cies, or personnel decisions of the entity. 


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1 (3) SUBSIDIARY.—The term ‘‘subsidiary’’ 

2 means an entity that is owned or controlled, directly 

3 or indirectly, by a United States person. 

4 (4) UNITED STATES PERSON.—The term 

5 ‘‘United States person’’ means— 

6 (A) a natural person who is a citizen, resi7 dent, or national of the United States; and 

8 (B) an entity that is organized under the 

9 laws of the United States, any State or terri10 tory thereof, or the District of Columbia, if nat11 ural persons described in subparagraph (A) own 

12 or control the entity. 

13 (b) IN GENERAL.—A United States person shall be 

14 subject to a penalty for a violation of the provisions of 

15 Executive Order 12959 (50 U.S.C. 1701 note) or Execu16 tive Order 13059 (50 U.S.C. 1701 note), or any other pro17 hibition on transactions with respect to Iran imposed 

18 under the authority of the International Emergency Eco19 nomic Powers Act (50 U.S.C. 1701 et seq.), if— 

20 (1) the President determines, pursuant to such 

21 regulations as the President may prescribe, that the 

22 United States person establishes or maintains a sub23 sidiary outside of the United States for the purpose 

24 of circumventing such provisions; and 


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1 (2) that subsidiary engages in an act that, if 

2 committed in the United States or by a United 

3 States person, would violate such provisions. 

4 (c) WAIVER.—The President may waive the applica5 tion of subsection (b) if the President— 

6 (1) determines that such a waiver is in the na7 tional interest of the United States; and 

8 (2) submits to the appropriate congressional 

9 committees a report describing the reasons for the 

10 determination. 

11 (d) EFFECTIVE DATE.— 

12 (1) IN GENERAL.—Subsection (b) shall take ef13 fect on the date of the enactment of this Act and 

14 apply with respect to acts described in subsection 

15 (b)(2) that are— 

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

17 enactment of this Act; or 

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

19 commenced before such date of enactment, if 

20 such acts continue on or after such date of en21 actment. 

22 (2) EXCEPTION.—Subsection (b) shall not 

23 apply with respect to an act described in paragraph 

24 (1)(B) by a subsidiary owned or controlled by a 

25 United States person if the United States person diVerDate Nov 24 2008 00:07 Nov 20, 2009 Jkt 089200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\S2799.RS S2799

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1 vests or terminates its business with the subsidiary 

2 not later than 90 days after the date of the enact3 ment of this Act. 

4 SEC. 105. PROHIBITION ON PROCUREMENT CONTRACTS 

5 WITH PERSONS THAT EXPORT SENSITIVE 

6 TECHNOLOGY TO IRAN. 

7 (a) IN GENERAL.—Notwithstanding any other provi8 sion of law, and pursuant to such regulations as the Presi9 dent may prescribe, the head of an executive agency may 

10 not enter into or renew a contract for the procurement 

11 of goods or services with a person that exports sensitive 

12 technology to Iran. 

13 (b) WAIVER.—The President may waive the applica14 tion of the prohibition under subsection (a) if the Presi15 dent— 

16 (1) determines that such a waiver is in the na17 tional interest of the United States; and 

18 (2) submits to Congress a report describing the 

19 reasons for the determination. 

20 (c) SENSITIVE TECHNOLOGY DEFINED.—The term 

21 ‘‘sensitive technology’’ means hardware, software, tele22 communications equipment, or any other technology that 

23 the President determines is to be used specifically— 

24 (1) to restrict the free flow of unbiased infor25 mation in Iran; or 


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1 (2) to disrupt, monitor, or otherwise restrict 

2 speech of the people of Iran. 

3 SEC. 106. INCREASED CAPACITY FOR EFFORTS TO COMBAT 

4 UNLAWFUL OR TERRORIST FINANCING. 

5 (a) FINDING.—Congress finds that the work of the 

6 Office of Terrorism and Financial Intelligence of the De7 partment of the Treasury, which includes the Office of 

8 Foreign Assets Control and the Financial Crimes Enforce9 ment Network, is critical to ensuring that the inter10 national financial system is not used for purposes of sup11 porting terrorism and developing weapons of mass de12 struction. 

13 (b) AUTHORIZATION OF APPROPRIATIONS FOR OF14 FICE OF TERRORISM AND FINANCIAL INTELLIGENCE.— 

15 There are authorized to be appropriated to the Secretary 

16 of the Treasury for the Office of Terrorism and Financial 

17 Intelligence— 

18 (1) $64,611,000 for fiscal year 2010; and 

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

20 the fiscal years 2011 and 2012. 

21 (c) AUTHORIZATION OF APPROPRIATIONS FOR THE

22 FINANCIAL CRIMES ENFORCEMENT NETWORK.—Section 

23 310(d)(1) of title 31, United States Code, is amended by 

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

25 2002, 2003, 2004, and 2005’’ and inserting 


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1 ‘‘$104,260,000 for fiscal year 2010 and such sums as may 

2 be necessary for each of the fiscal years 2011 and 2012’’. 

3 SEC. 107. REPORTING REQUIREMENTS. 

4 (a) REPORT ON INVESTMENT AND ACTIVITIES THAT

5 MAY BE SANCTIONABLE UNDER IRAN SANCTIONS ACT

6 OF 1996.— 

7 (1) IN GENERAL.—Not later than 180 days 

8 after the date of the enactment of this Act, the 

9 President shall submit to the appropriate congres10 sional committees a report containing— 

11 (A) a description of— 

12 (i) any foreign investments of 

13 $20,000,000 or more that contribute di14 rectly and significantly to the enhancement 

15 of Iran’s ability to develop petroleum re16 sources made during the period described 

17 in paragraph (2); 

18 (ii) any sale, lease, or provision to 

19 Iran during the period described in para20 graph (2) of any goods, services, tech21 nology, information, or support that would 

22 facilitate the maintenance or expansion of 

23 Iran’s domestic production of refined pe24 troleum products; and 


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1 (iii) any refined petroleum products 

2 provided to Iran during the period de3 scribed in paragraph (2) and any other ac4 tivity that could contribute directly and 

5 significantly to the enhancement of Iran’s 

6 ability to import refined petroleum prod7 ucts during that period; 

8 (B) with respect to each investment or 

9 other activity described in subparagraph (A), an 

10 identification of— 

11 (i) the date or dates of the investment 

12 or activity; 

13 (ii) the steps taken by the United 

14 States to respond to the investment or ac15 tivity; 

16 (iii) the name and United States 

17 domiciliary of any person that participated 

18 or invested in or facilitated the investment 

19 or activity; and 

20 (iv) any Federal Government con21 tracts to which any person referred to in 

22 clause (iii) are parties; and 

23 (C) the determination of the President 

24 with respect to whether each such investment or 

25 activity qualifies as a sanctionable offense 


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1 under section 5(a) of the Iran Sanctions Act of 

2 1996 (Public Law 104–172; 50 U.S.C. 1701 

3 note). 

4 (2) PERIOD DESCRIBED.—The period described 

5 in this paragraph is the period beginning on Janu6 ary 1, 2009, and ending on the date on which the 

7 President submits the report under paragraph (1). 

8 (b) SUBSEQUENT REPORTS.—Not later than 1 year 

9 after the date of the enactment of this Act, and every 180 

10 days thereafter, the President shall submit to the appro11 priate congressional committees an updated version of the 

12 report required under subsection (a) that contains the in13 formation required under that subsection for the 180-day 

14 period preceding the submission of the updated report. 

15 (c) FORM OF REPORTS; PUBLICATION.—A report 

16 submitted under subsection (a) or (b) shall be submitted 

17 in unclassified form, but may contain a classified annex. 

18 The unclassified portion of the report shall be published 

19 in the Federal Register. 

20 SEC. 108. SENSE OF CONGRESS REGARDING THE IMPOSI21 TION OF SANCTIONS ON THE CENTRAL BANK 

22 OF IRAN. 

23 Congress urges the President, in the strongest terms, 

24 to consider immediately using the authority of the Presi25 dent to impose sanctions on the Central Bank of Iran and 


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1 any other Iranian bank engaged in proliferation activities 

2 or support of terrorist groups. 

3 SEC. 109. POLICY OF THE UNITED STATES REGARDING 

4 IRAN’S REVOLUTIONARY GUARD CORPS AND 

5 ITS AFFILIATES. 

6 It is the sense of Congress that the United States 

7 should— 

8 (1) continue to target Iran’s Revolutionary 

9 Guard Corps persistently with economic sanctions 

10 for its support for terrorism, its role in proliferation, 

11 and its oppressive activities against the people of 

12 Iran; and 

13 (2) impose sanctions, including travel restric14 tions, sanctions authorized pursuant to this Act, and 

15 the full range of sanctions available to the President 

16 under the International Emergency Economic Pow17 ers Act (50 U.S.C. 1701 et seq.), on— 

18 (A) any foreign individual or entity that is 

19 an agent, alias, front, instrumentality, official, 

20 or affiliate of Iran’s Revolutionary Guard Corps 

21 and is designated for the imposition of sanc22 tions by the President; 

23 (B) any individual or entity who— 

24 (i) has provided material support to 

25 Iran’s Revolutionary Guard Corps or any 


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1 of its affiliates designated for the imposi2 tion of sanctions by the President; or 

3 (ii) has conducted any financial or 

4 commercial transaction with Iran’s Revolu5 tionary Guard Corps or any of its affiliates 

6 so designated; and 

7 (C) any foreign government found— 

8 (i) to be providing material support to 

9 Iran’s Revolutionary Guard Corps or any 

10 of its affiliates designated for the imposi11 tion of sanctions by the President; or 

12 (ii) to have conducted any commercial 

13 transaction or financial transaction with 

14 Iran’s Revolutionary Guard Corps or any 

15 of its affiliates so designated. 

16 SEC. 110. POLICY OF THE UNITED STATES WITH RESPECT 

17 TO IRAN AND HEZBOLLAH. 

18 It is the sense of Congress that the United States 

19 should— 

20 (1) continue to counter support received by 

21 Hezbollah from the Government of Iran and other 

22 foreign governments in response to Hezbollah’s ter23 rorist activities and the threat Hezbollah poses to 

24 Israel, the democratic sovereignty of Lebanon, and 

25 the national security interests of the United States; 


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1 (2) impose the full range of sanctions available 

2 to the President under the International Emergency 

3 Economic Powers Act (50 U.S.C. 1701 et seq.) on 

4 Hezbollah, its designated affiliates and supporters, 

5 and persons providing Hezbollah with commercial, 

6 financial, or other services; 

7 (3) urge the European Union, individual coun8 tries in Europe, and other countries to classify 

9 Hezbollah as a terrorist organization to facilitate the 

10 disruption of Hezbollah’s operations; and 

11 (4) renew international efforts to disarm 

12 Hezbollah and disband its militias in Lebanon, as 

13 called for by United Nations Security Council Reso14 lutions 1559 (2004) and 1701 (2006). 

15 SEC. 111. SENSE OF CONGRESS REGARDING THE IMPOSI16 TION OF MULTILATERAL SANCTIONS WITH 

17 RESPECT TO IRAN. 

18 It is the sense of Congress that— 

19 (1) in general, multilateral sanctions are more 

20 effective than unilateral sanctions at achieving de21 sired results from countries such as Iran; 

22 (2) the President should continue to work with 

23 allies of the United States to impose such sanctions 

24 as may be necessary to prevent the Government of 


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1 Iran from acquiring a nuclear weapons capability; 

2 and 

3 (3) the United States should continue to con4 sult with the 5 permanent members of the United 

5 Nations Security Council and Germany (commonly 

6 referred to as the ‘‘P5-plus-1’’) and other interested 

7 countries regarding imposing new sanctions with re8 spect to Iran in the event that diplomatic efforts to 

9 prevent Iran from acquiring a nuclear weapons capa10 bility fail. 

11 TITLE II—DIVESTMENT FROM 

12 CERTAIN COMPANIES THAT 

13 INVEST IN IRAN 

14 SEC. 201. DEFINITIONS. 

15 In this title: 

16 (1) ENERGY SECTOR.—The term ‘‘energy sec17 tor’’ refers to activities to develop petroleum or nat18 ural gas resources or nuclear power. 

19 (2) FINANCIAL INSTITUTION.—The term ‘‘fi20 nancial institution’’ has the meaning given that term 

21 in section 14(5) of the Iran Sanctions Act of 1996 

22 (Public Law 104–172; 50 U.S.C. 1701 note). 

23 (3) IRAN.—The term ‘‘Iran’’ includes any agen24 cy or instrumentality of Iran. 

25 (4) PERSON.—The term ‘‘person’’ means— 


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1 (A) a natural person, corporation, com2 pany, business association, partnership, society, 

3 trust, or any other nongovernmental entity, or4 ganization, or group; 

5 (B) any governmental entity or instrumen6 tality of a government, including a multilateral 

7 development institution (as defined in section 

8 1701(c)(3) of the International Financial Insti9 tutions Act (22 U.S.C. 262r(c)(3))); and 

10 (C) any successor, subunit, parent com11 pany, or subsidiary of any entity described in 

12 subparagraph (A) or (B). 

13 (5) STATE.—The term ‘‘State’’ means each of 

14 the several States, the District of Columbia, the 

15 Commonwealth of Puerto Rico, the United States 

16 Virgin Islands, Guam, American Samoa, and the 

17 Commonwealth of the Northern Mariana Islands. 

18 (6) STATE OR LOCAL GOVERNMENT.—The term 

19 ‘‘State or local government’’ includes— 

20 (A) any State and any agency or instru21 mentality thereof; 

22 (B) any local government within a State, 

23 and any agency or instrumentality thereof; 

24 (C) any other governmental instrumen25 tality; and 


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1 (D) any public institution of higher edu2 cation within the meaning of the Higher Edu3 cation Act of 1965 (20 U.S.C. 1001 et seq.). 

4 SEC. 202. AUTHORITY OF STATE AND LOCAL GOVERN5 MENTS TO DIVEST FROM CERTAIN COMPA6 NIES THAT INVEST IN IRAN. 

7 (a) SENSE OF CONGRESS.—It is the sense of Con8 gress that the United States Government should support 

9 the decision of any State or local government that for 

10 moral, prudential, or reputational reasons divests from, or 

11 prohibits the investment of assets of the State or local gov12 ernment in, a person that engages in investment activities 

13 in the energy sector of Iran, as long as that country is 

14 subject to economic sanctions imposed by the United 

15 States. 

16 (b) AUTHORITY TO DIVEST.—Notwithstanding any 

17 other provision of law, a State or local government may 

18 adopt and enforce measures that meet the requirements 

19 of subsection (d) to divest the assets of the State or local 

20 government from, or prohibit investment of the assets of 

21 the State or local government in, any person that the 

22 State or local government determines, using credible infor23 mation available to the public, engages in investment ac24 tivities in Iran described in subsection (c). 


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1 (c) INVESTMENT ACTIVITIES DESCRIBED.—A person 

2 engages in investment activities in Iran described in this 

3 subsection if the person— 

4 (1) has an investment of $20,000,000 or more 

5 in the energy sector of Iran, including in a person 

6 that provides oil or liquified natural gas tankers, or 

7 products used to construct or maintain pipelines 

8 used to transport oil or liquified natural gas, for the 

9 energy sector in Iran; or 

10 (2) is a financial institution that extends 

11 $20,000,000 or more in credit to another person, for 

12 45 days or more, if that person will use the credit 

13 to invest in the energy sector in Iran. 

14 (d) REQUIREMENTS.—Any measure taken by a State 

15 or local government under subsection (b) shall meet the 

16 following requirements: 

17 (1) NOTICE.—The State or local government 

18 shall provide written notice to each person to which 

19 a measure is to be applied. 

20 (2) TIMING.—The measure shall apply to a per21 son not earlier than the date that is 90 days after 

22 the date on which written notice is provided to the 

23 person under paragraph (1). 

24 (3) OPPORTUNITY FOR HEARING.—The State 

25 or local government shall provide an opportunity to 


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1 comment in writing to each person to which a meas2 ure is to be applied. If the person demonstrates to 

3 the State or local government that the person does 

4 not engage in investment activities in Iran described 

5 in subsection (c), the measure shall not apply to the 

6 person. 

7 (4) SENSE OF CONGRESS ON AVOIDING ERRO8 NEOUS TARGETING.—It is the sense of Congress 

9 that a State or local government should not adopt 

10 a measure under subsection (b) with respect to a 

11 person unless the State or local government has 

12 made every effort to avoid erroneously targeting the 

13 person and has verified that the person engages in 

14 investment activities in Iran described in subsection 

15 (c). 

16 (e) NOTICE TO DEPARTMENT OF JUSTICE.—Not 

17 later than 30 days after adopting a measure pursuant to 

18 subsection (b), a State or local government shall submit 

19 written notice to the Attorney General describing the 

20 measure. 

21 (f) NONPREEMPTION.—A measure of a State or local 

22 government authorized under subsection (b) is not pre23 empted by any Federal law or regulation. 

24 (g) DEFINITIONS.—In this section: 


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

2 with respect to a State or local government, in3 cludes— 

4 (A) a commitment or contribution of as5 sets; 

6 (B) a loan or other extension of credit; and 

7 (C) the entry into or renewal of a contract 

8 for goods or services. 

9 (2) ASSETS.— 

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

11 subparagraph (B), the term ‘‘assets’’ refers to 

12 public monies and includes any pension, retire13 ment, annuity, or endowment fund, or similar 

14 instrument, that is controlled by a State or 

15 local government. 

16 (B) EXCEPTION.—The term ‘‘assets’’ does 

17 not include employee benefit plans covered by 

18 title I of the Employee Retirement Income Se19 curity Act of 1974 (29 U.S.C. 1001 et seq.). 

20 (h) EFFECTIVE DATE.— 

21 (1) IN GENERAL.—Except as provided in para22 graph (2), this section applies to measures adopted 

23 by a State or local government before, on, or after 

24 the date of the enactment of this Act. 


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1 (2) NOTICE REQUIREMENTS.—Subsections (d) 

2 and (e) apply to measures adopted by a State or 

3 local government on or after the date of the enact4 ment of this Act. 

5 SEC. 203. SAFE HARBOR FOR CHANGES OF INVESTMENT 

6 POLICIES BY ASSET MANAGERS. 

7 (a) IN GENERAL.—Section 13(c)(1) of the Invest8 ment Company Act of 1940 (15 U.S.C. 80a–13(c)(1)) is 

9 amended to read as follows: 

10 ‘‘(1) IN GENERAL.—Notwithstanding any other 

11 provision of Federal or State law, no person may 

12 bring any civil, criminal, or administrative action 

13 against any registered investment company, or any 

14 employee, officer, director, or investment adviser 

15 thereof, based solely upon the investment company 

16 divesting from, or avoiding investing in, securities 

17 issued by persons that the investment company de18 termines, using credible information available to the 

19 public— 

20 ‘‘(A) conduct or have direct investments in 

21 business operations in Sudan described in sec22 tion 3(d) of the Sudan Accountability and Di23 vestment Act of 2007 (50 U.S.C. 1701 note); or 

24 ‘‘(B) engage in investment activities in 

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1 prehensive Iran Sanctions, Accountability, and 

2 Divestment Act of 2009.’’. 

3 (b) SEC REGULATIONS.—Not later than 120 days 

4 after the date of the enactment of this Act, the Securities 

5 and Exchange Commission shall issue any revisions the 

6 Commission determines to be necessary to the regulations 

7 requiring disclosure by each registered investment com8 pany that divests itself of securities in accordance with 

9 section 13(c) of the Investment Company Act of 1940 to 

10 include divestments of securities in accordance with para11 graph (1)(B) of such section, as added by subsection (a). 

12 SEC. 204. SENSE OF CONGRESS REGARDING CERTAIN 

13 ERISA PLAN INVESTMENTS. 

14 It is the sense of Congress that a fiduciary of an em15 ployee benefit plan, as defined in section 3(3) of the Em16 ployee Retirement Income Security Act of 1974 (29 

17 U.S.C. 1002(3)), may divest plan assets from, or avoid 

18 investing plan assets in, any person the fiduciary deter19 mines engages in investment activities in Iran described 

20 in section 202(c) of this Act, without breaching the re21 sponsibilities, obligations, or duties imposed upon the fidu22 ciary by section 404 of the Employee Retirement Income 

23 Security Act of 1974 (29 U.S.C. 1104), if— 


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1 (1) the fiduciary makes such determination 

2 using credible information that is available to the 

3 public; and 

4 (2) such divestment or avoidance of investment 

5 is conducted in accordance with section 2509.08–1 

6 of title 29, Code of Federal Regulations (as in effect 

7 on the day before the date of the enactment of this 

8 Act). 

9 TITLE III—PREVENTION OF 

10 TRANSSHIPMENT, REEXPOR11 TATION, OR DIVERSION OF 

12 SENSITIVE ITEMS TO IRAN 

13 SEC. 301. DEFINITIONS. 

14 In this title: 

15 (1) APPROPRIATE CONGRESSIONAL COMMIT16 TEES.—The term ‘‘appropriate congressional com17 mittees’’ means— 

18 (A) the Committee on Banking, Housing, 

19 and Urban Affairs, the Committee on Foreign 

20 Relations, and the Select Committee on Intel21 ligence of the Senate; and 

22 (B) the Committee on Financial Services, 

23 the Committee on Foreign Affairs, and the Per24 manent Select Committee on Intelligence of the 

25 House of Representatives. 


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1 (2) END-USER.—The term ‘‘end-user’’ means 

2 an end-user as that term is used in the Export Ad3 ministration Regulations. 

4 (3) EXPORT ADMINISTRATION REGULATIONS.— 

5 The term ‘‘Export Administration Regulations’’ 

6 means subchapter C of chapter VII of title 15, Code 

7 of Federal Regulations. 

8 (4) GOVERNMENT.—The term ‘‘government’’ 

9 includes any agency or instrumentality of a govern10 ment. 

11 (5) IRAN.—The term ‘‘Iran’’ includes any agen12 cy or instrumentality of Iran. 

13 (6) STATE SPONSOR OF TERRORISM.—The term 

14 ‘‘state sponsor of terrorism’’ means any country the 

15 government of which the Secretary of State has de16 termined has repeatedly provided support for acts of 

17 international terrorism pursuant to— 

18 (A) section 6(j)(1)(A) of the Export Ad19 ministration Act of 1979 (50 U.S.C. App. 

20 2405(j)(1)(A)) (or any successor thereto); 

21 (B) section 40(d) of the Arms Export Con22 trol Act (22 U.S.C. 2780(d)); or 

23 (C) section 620A(a) of the Foreign Assist24 ance Act of 1961 (22 U.S.C. 2371(a)). 


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1 (7) TRANSSHIPMENT, REEXPORTATION, OR DI2 VERSION.—The term ‘‘transshipment, reexportation, 

3 or diversion’’ means the exportation, directly or indi4 rectly, of items that originated in the United States 

5 to an end-user whose identity cannot be verified or 

6 to an entity in Iran in violation of the laws or regu7 lations of the United States by any means, including 

8 by— 

9 (A) shipping such items through 1 or more 

10 foreign countries; or 

11 (B) by using false information regarding 

12 the country of origin of such items. 

13 SEC. 302. IDENTIFICATION OF LOCATIONS OF CONCERN 

14 WITH RESPECT TO TRANSSHIPMENT, RE15 EXPORTATION, OR DIVERSION OF CERTAIN 

16 ITEMS TO IRAN. 

17 Not later than 180 days after the date of the enact18 ment of this Act, and annually thereafter, the Director 

19 of National Intelligence shall submit to the Secretary of 

20 Commerce, the Secretary of State, the Secretary of the 

21 Treasury, and the appropriate congressional committees 

22 a report that identifies all countries that the Director de23 termines are of concern with respect to transshipment, re24 exportation, or diversion of items subject to the provisions 


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1 of the Export Administration Regulations to an entity in 

2 Iran. 

3 SEC. 303. DESTINATIONS OF POSSIBLE DIVERSION CON4 CERN AND DESTINATIONS OF DIVERSION 

5 CONCERN. 

6 (a) DESTINATIONS OF POSSIBLE DIVERSION CON7 CERN.— 

8 (1) DESIGNATION.—The Secretary of Com9 merce shall designate a country as a Destination of 

10 Possible Diversion Concern if the Secretary, in con11 sultation with the Secretary of State and the Sec12 retary of the Treasury, determines that such des13 ignation is appropriate to carry out activities to 

14 strengthen the export control systems of that coun15 try based on criteria that include— 

16 (A) the volume of items that originated in 

17 the United States that are transported through 

18 the country to end-users whose identities cannot 

19 be verified; 

20 (B) the inadequacy of the export and reex21 port controls of the country; 

22 (C) the unwillingness or demonstrated in23 ability of the government of the country to con24 trol diversion activities; and 


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1 (D) the unwillingness or inability of the 

2 government of the country to cooperate with the 

3 United States in interdiction efforts. 

4 (2) STRENGTHENING EXPORT CONTROL SYS5 TEMS OF DESTINATIONS OF POSSIBLE DIVERSION

6 CONCERN.—If the Secretary of Commerce designates 

7 a country as a Destination of Possible Diversion 

8 Concern under paragraph (1), the United States 

9 shall initiate government-to-government activities de10 scribed in paragraph (3) to strengthen the export 

11 control systems of the country. 

12 (3) GOVERNMENT-TO-GOVERNMENT ACTIVITIES

13 DESCRIBED.—The government-to-government activi14 ties described in this paragraph include— 

15 (A) cooperation by agencies and depart16 ments of the United States with counterpart 

17 agencies and departments in a country des18 ignated as a Destination of Possible Diversion 

19 Concern under paragraph (1) to— 

20 (i) develop or strengthen export con21 trol systems in the country; 

22 (ii) strengthen cooperation and facili23 tate enforcement of export control systems 

24 in the country; and 


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1 (iii) promote information and data ex2 changes among agencies of the country 

3 and with the United States; and 

4 (B) efforts by the Office of International 

5 Programs of the Department of Commerce to 

6 strengthen the export control systems of the 

7 country to— 

8 (i) facilitate legitimate trade in high9 technology goods; and 

10 (ii) prevent terrorists and state spon11 sors of terrorism, including Iran, from ob12 taining nuclear, biological, and chemical 

13 weapons, defense technologies, components 

14 for improvised explosive devices, and other 

15 defense items. 

16 (b) DESTINATIONS OF DIVERSION CONCERN.— 

17 (1) DESIGNATION.—The Secretary of Com18 merce shall designate a country as a Destination of 

19 Diversion Concern if the Secretary, in consultation 

20 with the Secretary of State and the Secretary of the 

21 Treasury, determines— 

22 (A) that the government of the country al23 lows substantial transshipment, reexportation, 

24 or diversion of items that originated in the 


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1 United States to end-users whose identities can2 not be verified or to entities in Iran; or 

3 (B) 12 months after the Secretary of Com4 merce designates the country as a Destination 

5 of Possible Diversion Concern under subsection 

6 (a)(1), that the country has failed— 

7 (i) to cooperate with the government8 to-government activities initiated by the 

9 United States under subsection (a)(2); or 

10 (ii) based on the criteria described in 

11 subsection (a)(1), to adequately strengthen 

12 the export control systems of the country. 

13 (2) LICENSING CONTROLS WITH RESPECT TO

14 DESTINATIONS OF DIVERSION CONCERN.— 

15 (A) REPORT ON SUSPECT ITEMS.— 

16 (i) IN GENERAL.—Not later than 45 

17 days after the date of the enactment of 

18 this Act, the Secretary of Commerce, in 

19 consultation with the Director of National 

20 Intelligence, the Secretary of State, and 

21 the Secretary of the Treasury, shall submit 

22 to the appropriate congressional commit23 tees a report containing a list of items 

24 that, if the items were transshipped, reexVerDate Nov 24 2008 00:07 Nov 20, 2009 Jkt 089200 PO 00000 Frm 00047 Fmt 6652 Sfmt 6201 E:\BILLS\S2799.RS S2799

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1 ported, or diverted to Iran, could con2 tribute to— 

3 (I) Iran obtaining nuclear, bio4 logical, or chemical weapons, defense 

5 technologies, components for impro6 vised explosive devices, or other de7 fense items; or 

8 (II) support by Iran for acts of 

9 international terrorism. 

10 (ii) CONSIDERATIONS FOR LIST.—In 

11 developing the list required under clause 

12 (i), the Secretary of Commerce shall con13 sider— 

14 (I) the items subject to licensing 

15 requirements under section 742.8 of 

16 title 15, Code of Federal Regulations 

17 (or any corresponding similar regula18 tion or ruling) and other existing li19 censing requirements; and 

20 (II) the items added to the list of 

21 items for which a license is required 

22 for exportation to North Korea by the 

23 final rule of the Bureau of Export Ad24 ministration of the Department of 

25 Commerce issued on June 19, 2000 


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1 (65 Fed. Reg. 38148; relating to ex2 port restrictions on North Korea). 

3 (B) LICENSING REQUIREMENT.—Not later 

4 than 180 days after the date of the enactment 

5 of this Act, the Secretary of Commerce shall re6 quire a license to export an item on the list re7 quired under subparagraph (A)(i) to a country 

8 designated as a Destination of Diversion Con9 cern. 

10 (C) WAIVER.—The President may waive 

11 the imposition of the licensing requirement 

12 under subparagraph (B) with respect to a coun13 try designated as a Destination of Diversion 

14 Concern if the President— 

15 (i) determines that such a waiver is in 

16 the national interest of the United States; 

17 and 

18 (ii) submits to the appropriate con19 gressional committees a report describing 

20 the reasons for the determination. 

21 (c) TERMINATION OF DESIGNATION.—The designa22 tion of a country as a Destination of Possible Diversion 

23 Concern or a Destination of Diversion Concern shall ter24 minate on the date on which the Secretary of Commerce 

25 determines, based on the criteria described in subparaVerDate Nov 24 2008 00:07 Nov 20, 2009 Jkt 089200 PO 00000 Frm 00049 Fmt 6652 Sfmt 6201 E:\BILLS\S2799.RS S2799

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•S 2799 RS

1 graphs (A) through (D) of subsection (a)(1), and certifies 

2 to Congress and the President that the country has ade3 quately strengthened the export control systems of the 

4 country to prevent transshipment, reexportation, and di5 version of items through the country to end-users whose 

6 identities cannot be verified or to entities in Iran. 

7 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

8 are authorized to be appropriated such sums as may be 

9 necessary to carry out this section. 

10 SEC. 304. REPORT ON EXPANDING DIVERSION CONCERN 

11 SYSTEM TO COUNTRIES OTHER THAN IRAN. 

12 Not later than 180 days after the date of the enact13 ment of this Act, the Director of National Intelligence, in 

14 consultation with the Secretary of Commerce, the Sec15 retary of State, and the Secretary of the Treasury, shall 

16 submit to the appropriate congressional committees a re17 port that— 

18 (1) identifies any country that the Director de19 termines may be transshipping, reexporting, or di20 verting items subject to the provisions of the Export 

21 Administration Regulations to another country if 

22 such other country— 

23 (A) is seeking to obtain nuclear, biological, 

24 or chemical weapons, defense technologies, comVerDate Nov 24 2008 01:10 Nov 20, 2009 Jkt 089200 PO 00000 Frm 00050 Fmt 6652 Sfmt 6201 E:\BILLS\S2799.RS S2799

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1 ponents for improvised explosive devices, or 

2 other defense items; or 

3 (B) provides support for acts of inter4 national terrorism; and 

5 (2) assesses the feasability and advisability of 

6 expanding the system established under section 303 

7 for designating countries as Destinations of Possible 

8 Diversion Concern and Destinations of Diversion 

9 Concern to include countries identified under para10 graph (1). 

11 TITLE IV—EFFECTIVE DATE; 

12 SUNSET 

13 SEC. 401. EFFECTIVE DATE; SUNSET. 

14 (a) EFFECTIVE DATE.—Except as provided in sec15 tions 104, 202, and 303(b)(2), the provisions of, and 

16 amendments made by, this Act shall take effect on the 

17 date that is 120 days after the date of the enactment of 

18 this Act. 

19 (b) SUNSET.—The provisions of this Act shall termi20 nate on the date that is 30 days after the date on which 

21 the President certifies to Congress that— 

22 (1) the Government of Iran has ceased pro23 viding support for acts of international terrorism 

24 and no longer satisfies the requirements for designa25 tion as a state sponsor of terrorism under— 


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1 (A) section 6(j)(1)(A) of the Export Ad2 ministration Act of 1979 (50 U.S.C. App. 

3 2405(j)(1)(A)) (or any successor thereto); 

4 (B) section 40(d) of the Arms Export Con5 trol Act (22 U.S.C. 2780(d)); or 

6 (C) section 620A(a) of the Foreign Assist7 ance Act of 1961 (22 U.S.C. 2371(a)); and 

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

9 and development of nuclear, biological, and chemical 

10 weapons and ballistic missiles and ballistic missile 

11 launch technology. 


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Calendar No. 215 

111TH CONGRESS 

1ST SESSION S. 2799 

[Report No. 111–99] 

A BILL 

To expand the Iran Sanctions Act of 1996, to prosensitive items to Iran, and for other purposes. shipment, reexportation, or diversion of certain tify locations of concern with respect to trans- and local governments and other entities, to iden- vide for the divestment of assets in Iran by State 

NOVEMBER 19, 2009 

Read twice and placed on the calendar 


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