H. R. 3107
One Hundred Fourth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Wednesday,
the third day of January, one thousand nine hundred and ninety-six
An Act
To impose sanctions on persons making certain investments directly and significantly
contributing to the enhancement of the ability of Iran or Libya to develop its
petroleum resources, and on persons exporting certain items that enhance Libya’s
weapons or aviation capabilities or enhance Libya’s ability to develop its petroleum
resources, and for other purposes.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Iran and Libya Sanctions Act
of 1996’’.
SEC. 2. FINDINGS.
The Congress makes the following findings:
(1) The efforts of the Government of Iran to acquire weap-
ons of mass destruction and the means to deliver them and
its support of acts of international terrorism endanger the
national security and foreign policy interests of the United
States and those countries with which the United States shares
common strategic and foreign policy objectives.
(2) The objective of preventing the proliferation of weapons
of mass destruction and acts of international terrorism through
existing multilateral and bilateral initiatives requires addi-
tional efforts to deny Iran the financial means to sustain its
nuclear, chemical, biological, and missile weapons programs.
(3) The Government of Iran uses its diplomatic facilities
and quasi-governmental institutions outside of Iran to promote
acts of international terrorism and assist its nuclear, chemical,
biological, and missile weapons programs.
(4) The failure of the Government of Libya to comply with
Resolutions 731, 748, and 883 of the Security Council of the
United Nations, its support of international terrorism, and
its efforts to acquire weapons of mass destruction constitute
a threat to international peace and security that endangers
the national security and foreign policy interests of the United
States and those countries with which it shares common strate-
gic and foreign policy objectives.
SEC. 3. DECLARATION OF POLICY.
(a) POLICY WITH RESPECT TO IRAN.—The Congress declares
that it is the policy of the United States to deny Iran the ability
to support acts of international terrorism and to fund the develop-
ment and acquisition of weapons of mass destruction and the means
to deliver them by limiting the development of Iran’s ability to
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explore for, extract, refine, or transport by pipeline petroleum
resources of Iran.
(b) POLICY WITH RESPECT TO LIBYA.—The Congress further
declares that it is the policy of the United States to seek full
compliance by Libya with its obligations under Resolutions 731,
748, and 883 of the Security Council of the United Nations, includ-
ing ending all support for acts of international terrorism and efforts
to develop or acquire weapons of mass destruction.
SEC. 4. MULTILATERAL REGIME.
(a) MULTILATERAL NEGOTIATIONS.—In order to further the
objectives of section 3, the Congress urges the President to com-
mence immediately diplomatic efforts, both in appropriate inter-
national fora such as the United Nations, and bilaterally with
allies of the United States, to establish a multilateral sanctions
regime against Iran, including provisions limiting the development
of petroleum resources, that will inhibit Iran’s efforts to carry
out activities described in section 2.
(b) REPORTS TO CONGRESS.—The President shall report to the
appropriate congressional committees, not later than 1 year after
the date of the enactment of this Act, and periodically thereafter,
on the extent that diplomatic efforts described in subsection (a)
have been successful. Each report shall include—
(1) the countries that have agreed to undertake measures
to further the objectives of section 3 with respect to Iran,
and a description of those measures; and
(2) the countries that have not agreed to measures
described in paragraph (1), and, with respect to those countries,
other measures (in addition to that provided in subsection
(d)) the President recommends that the United States take
to further the objectives of section 3 with respect to Iran.
(c) WAIVER.—The President may waive the application of sec-
tion 5(a) with respect to nationals of a country if—
(1) that country has agreed to undertake substantial meas-
ures, including economic sanctions, that will inhibit Iran’s
efforts to carry out activities described in section 2 and informa-
tion required by subsection (b)(1) has been included in a report
submitted under subsection (b); and
(2) the President, at least 30 days before the waiver takes
effect, notifies the appropriate congressional committees of his
intention to exercise the waiver.
(d) ENHANCED SANCTION.—
(1) SANCTION.—With respect to nationals of countries
except those with respect to which the President has exercised
the waiver authority of subsection (c), at any time after the
first report is required to be submitted under subsection (b),
section 5(a) shall be applied by substituting ‘‘$20,000,000’’ for
‘‘$40,000,000’’ each place it appears, and by substituting
‘‘$5,000,000’’ for ‘‘$10,000,000’’.
(2) REPORT TO CONGRESS.—The President shall report to
the appropriate congressional committees any country with
respect to which paragraph (1) applies.
(e) INTERIM REPORT ON MULTILATERAL SANCTIONS; MONITOR-
ING.—The President, not later than 90 days after the date of the
enactment of this Act, shall report to the appropriate congressional
committees on—
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(1) whether the member states of the European Union,
the Republic of Korea, Australia, Israel, or Japan have legisla-
tive or administrative standards providing for the imposition
of trade sanctions on persons or their affiliates doing business
or having investments in Iran or Libya;
(2) the extent and duration of each instance of the applica-
tion of such sanctions; and
(3) the disposition of any decision with respect to such
sanctions by the World Trade Organization or its predecessor
organization.
SEC. 5. IMPOSITION OF SANCTIONS.
(a) SANCTIONS WITH RESPECT TO IRAN.—Except as provided
in subsection (f), the President shall impose 2 or more of the
sanctions described in paragraphs (1) through (6) of section 6 if
the President determines that a person has, with actual knowledge,
on or after the date of the enactment of this Act, made an invest-
ment of $40,000,000 or more (or any combination of investments
of at least $10,000,000 each, which in the aggregate equals or
exceeds $40,000,000 in any 12-month period), that directly and
significantly contributed to the enhancement of Iran’s ability to
develop petroleum resources of Iran.
(b) MANDATORY SANCTIONS WITH RESPECT TO LIBYA.—
(1) VIOLATIONS OF PROHIBITED TRANSACTIONS.—Except as
provided in subsection (f), the President shall impose 2 or
more of the sanctions described in paragraphs (1) through
(6) of section 6 if the President determines that a person
has, with actual knowledge, on or after the date of the enact-
ment of this Act, exported, transferred, or otherwise provided
to Libya any goods, services, technology, or other items the
provision of which is prohibited under paragraph 4(b) or 5
of Resolution 748 of the Security Council of the United Nations,
adopted March 31, 1992, or under paragraph 5 or 6 of Resolu-
tion 883 of the Security Council of the United Nations, adopted
November 11, 1993, if the provision of such items significantly
and materially—
(A) contributed to Libya’s ability to acquire chemical,
biological, or nuclear weapons or destabilizing numbers
and types of advanced conventional weapons or enhanced
Libya’s military or paramilitary capabilities;
(B) contributed to Libya’s ability to develop its petro-
leum resources; or
(C) contributed to Libya’s ability to maintain its avia-
tion capabilities.
(2) INVESTMENTS THAT CONTRIBUTE TO THE DEVELOPMENT
OF PETROLEUM RESOURCES.—Except as provided in subsection
(f), the President shall impose 2 or more of the sanctions
described in paragraphs (1) through (6) of section 6 if the
President determines that a person has, with actual knowledge,
on or after the date of the enactment of this Act, made an
investment of $40,000,000 or more (or any combination of
investments of at least $10,000,000 each, which in the aggre-
gate equals or exceeds $40,000,000 in any 12-month period),
that directly and significantly contributed to the enhancement
of Libya’s ability to develop its petroleum resources.