a person as described in this Act, the President shall 
direct the Secretary of the Treasury to initiate an 
investigation into the possible imposition of sanc-
tions against such person as a result of such activ-
ity, to notify such person of such investigation, and 
to provide a recommendation to the President for 
such purposes. 
‘‘(2) DETERMINATION
AND
NOTIFICATION.—
Not later than 90 days after the date of the disclo-
sure of the activity described in paragraph (1), the 
President shall determine whether or not to impose 
sanctions against such person as a result of such ac-
tivity and shall notify the appropriate congressional 
committees of the basis for such determination. 
‘‘(3) PUBLICATION.—Not later than 10 days 
after the President notifies the appropriate congres-
sional committees under paragraph (2), the Presi-
dent shall ensure publication in the Federal Register 
of—
‘‘(A) the identification of the persons 
against which the President has made a deter-
mination that the imposition of sanctions is ap-
propriate, together with an explanation for such 
determination; and
‘‘(B) the identification of the persons 
against which the President has made a deter-
mination that the imposition of sanctions is not 
appropriate, together with an explanation for 
such determination.’’. 
SEC. 202. IMPOSITION OF SANCTIONS. 
(a) SANCTIONS WITH RESPECT TO DEVELOPMENT 
OF PETROLEUM RESOURCES.—Section 5(a) of the Iran 
and Libya Sanctions Act of 1996 (50 U.S.C. 1701 note) 
is amended—
(1) in the heading, by striking ‘‘TO IRAN’’ and 
inserting ‘‘TO THE DEVELOPMENT OF PETROLEUM 
RESOURCES OF IRAN’’; 
(2) by striking ‘‘(6)’’ and inserting ‘‘(5)’’; and 
(3) by striking ‘‘with actual knowledge,’’. 
(b) SANCTIONS WITH RESPECT TO DEVELOPMENT 
OF WEAPONS OF MASS DESTRUCTION OR OTHER MILI-
TARY CAPABILITIES.—Section 5(b) of such Act (50 U.S.C. 
1701 note) is amended to read as follows: 
‘‘(b) MANDATORY SANCTIONS WITH RESPECT TO 
DEVELOPMENT OF WEAPONS OF MASS DESTRUCTION OR 
OTHER MILITARY CAPABILITIES.—Notwithstanding any 
other provision of law, the President shall impose two or 
more of the sanctions described in paragraphs (1) through 
(5) of section 6 if the President determines that a person
has, on or after the date of the enactment of this Act, 
exported, transferred, or otherwise provided to Iran any 
goods, services, technology, or other items the provision 
of which has contributed to the ability of Iran to—
‘‘(1) acquire or develop chemical, biological, or 
nuclear weapons or related technologies; or 
‘‘(2) acquire or develop destabilizing numbers 
and types of advanced conventional weapons.’’. 
(c) PERSONS AGAINST WHICH THE SANCTIONS ARE 
TO BE IMPOSED.—Section 5(c)(2) of such Act (50 U.S.C. 
1701 note) is amended—
(1) in subparagraph (B), by striking ‘‘or’’ at 
the end; 
(2) in subparagraph (C), by striking the period 
at the end and inserting ‘‘; or’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(D) is a private or government lender, in-
surer, underwriter, re-insurer, or guarantor of 
the person referred to in paragraph (1) if that 
private or government lender, insurer, under-
writer, re-insurer, or guarantor, with actual 
knowledge, engaged in the activities referred to 
in paragraph (1).’’.
(d) EFFECTIVE DATE.—Sanctions imposed pursuant 
to the amendments made by this section shall apply with 
respect to investments made in Iran on or after the date 
of the enactment of this Act. 
SEC. 203. TERMINATION OF SANCTIONS. 
(a) REMOVAL OF LIBYA.—Section 8 of the Iran and 
Libya Sanctions Act 1996 (50 U.S.C. 1701 note) is 
amended—
(1) in subsection (a), by striking the subsection 
designation and heading; and 
(2) by striking subsection (b). 
(b) NO THREAT POSED.—Such section, as amended 
by subsection (a), is further amended—
(1) in paragraph (1)(C), by striking ‘‘and’’ at 
the end; 
(2) in paragraph (2), by striking the period at 
the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(3) poses no threat to United States national 
security, interests, or allies.’’. 
SEC. 204. SUNSET. 
Section 13 of the Iran and Libya Sanctions Act of 
1996 (50 U.S.C. 1701 note) is amended—
(1) in the section heading, by striking ‘‘; SUN-
SET’’; 
(2) in subsection (a), by striking the subsection 
designation and heading; and 
(3) by striking subsection (b). 
SEC. 205. CLARIFICATION AND EXPANSION OF DEFINI-
TIONS. 
(a) PERSON.—Section 14(14)(B) of the Iran and 
Libya Sanctions Act of 1996 (50 U.S.C. 1701 note) is 
amended—
(1) by inserting after ‘‘trust’’ the following: ‘‘, 
financial institution, insurer, underwriter, re-insurer, 
guarantor’’; and 
(2) by striking ‘‘operating as a business enter-
prise’’. 
(b) PETROLEUM RESOURCES.—Section 14(15) of the 
Iran and Libya Sanctions Act of 1996 (50 U.S.C. 1701 
note) is amended by inserting after ‘‘petroleum’’ the fol-
lowing: ‘‘, petroleum by-products,’’. 
TITLE III—DEMOCRACY IN IRAN 
SEC. 
301. 
DECLARATION 
OF 
CONGRESS 
REGARDING 
UNITED STATES POLICY TOWARD IRAN. 
Congress declares that it should be the policy of the 
United States to support independent human rights and 
pro-democracy forces in Iran.