(b) SANCTIONS.—
(1) DESCRIPTION
OF
SANCTIONS.—The sanc-
tions to be imposed pursuant to subsection (a)(1)
are, except as provided in paragraph (2) of this sub-
section, as follows:
(A) 
PROCUREMENT
SANCTION.—The
United States Government shall not procure, or
enter into any contract for the procurement of,
any goods or services from any person described
in subsection (a)(2).
(B) 
EXPORT
SANCTION.—The 
United
States Government shall not issue any license
for any export by or to any person described in
subsection (a)(2).
(C) IMPORT SANCTION.—The importation
into the United States of any good or service
from, or produced (in whole or in part) by, any
person described in subsection (a)(2) is prohib-
ited.
(2) EXCEPTIONS.—The President shall not be
required to apply or maintain the sanctions under
this section—
(A) in the case of procurement of defense
articles or defense services—
(i) under existing contracts or sub-
contracts, including the exercise of options
for production quantities to satisfy require-
ments essential to the national security of
the United States;
(ii) if the President determines in
writing that the person or other entity to
which the sanction would otherwise be ap-
plied is a sole source supplier of the de-
fense articles or services, that the defense
articles or services are essential, and that
alternative sources are not readily or rea-
sonably available; or
(iii) if the President determines in
writing that such articles or services are
essential to the national security under de-
fense coproduction agreements;
(B) to products or services provided under
contracts entered into before the date on which
the President publishes his intention to impose
the sanction;
(C) to—
(i) spare parts which are essential to
United States products or production;
(ii) component parts, but not finished
products, essential to United States prod-
ucts or production; or
(iii) routine servicing and mainte-
nance of products, to the extent that alter-
native sources are not readily or reason-
ably available;
(D) to information and technology essen-
tial to United States products or production; or
(E) to medical or other humanitarian
items.
(c) SUPERSEDES EXISTING LAW.—The provisions of
this section supersede the provisions of section 1604 of
the Iran-Iraq Arms Non-Proliferation Act of 1992 (as con-
tained in Public Law 102–484) as such section applies to
Iran.
SEC. 3. WAIVER AUTHORITY.
The provisions of section 2 shall not apply if the
President determines and certifies to the appropriate con-
gressional committees that Iran—
(1) has substantially improved its adherence to
internationally recognized standards of human
rights;
(2) has ceased its efforts to acquire a nuclear
explosive device; and
(3) has ceased support for acts of international
terrorism.
SEC. 4. REPORT REQUIRED.
Beginning 60 days after the date of enactment of this
Act, and every 90 days thereafter, the President shall
transmit to the appropriate congressional committees a re-
port describing—
(1) the nuclear and other military capabilities
of Iran; and
(2) the support, if any, provided by Iran for
acts of international terrorism.
SEC. 5. DEFINITIONS.
As used in this Act:
(1) ACT OF INTERNATIONAL TERRORISM.—The
term ‘‘act of international terrorism’’ means an
act—
(A) which is violent or dangerous to
human life and that is a violation of the crimi-
nal laws of the United States or of any State
or that would be a criminal violation if commit-
ted within the jurisdiction of the United States
or any State; and
(B) which appears to be intended—
(i) to intimidate or coerce a civilian
population;
(ii) to influence the policy of a govern-
ment by intimidation or coercion; or
(iii) to affect the conduct of a govern-
ment by assassination or kidnapping.
(2) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means the Committees on Banking, Hous-
ing, and Urban Affairs and Foreign Relations of the
Senate and the Committees on Banking and Finan-
cial Services and International Relations of the
House of Representatives.
(3) FOREIGN PERSON.—The term ‘‘foreign per-
son’’ means—
(A) an individual who is not a United
States national or an alien admitted for perma-
nent residence to the United States; or
(B) a corporation, partnership, or other
nongovernment entity which is not a United
States national.
(4) IRAN.—The term ‘‘Iran’’ includes any agen-
cy or instrumentality of Iran.
(5) NUCLEAR EXPLOSIVE DEVICE.—The term
‘‘nuclear explosive device’’ means any device, wheth-
er assembled or disassembled, that is designed to
produce an instantaneous release of an amount of
nuclear energy from special nuclear material that is
greater than the amount of energy that would be re-
leased from the detonation of one pound of trinitro-
toluene (TNT).
(6) REQUISITE KNOWLEDGE.—The term ‘‘req-
uisite knowledge’’ means situations in which a per-
son ‘‘knows’’, as ‘‘knowing’’ is defined in section 104
of the Foreign Corrupt Practices Act of 1977 (15
U.S.C. 78dd–2).
(7) STATE.—The term ‘‘State’’ means each of
the several States, the District of Columbia, the
Commonwealth of Puerto Rico, the Commonwealth
of the Northern Mariana Islands, American Samoa,
Guam, the United States Virgin Islands, and any
other territory or possession of the United States.
(8) 
UNITED
STATES.—The 
term 
‘‘United
States’’ means the several States, the District of Co-
lumbia, the Commonwealth of Puerto Rico, the Com-
monwealth of the Northern Mariana Islands, Amer-
ican Samoa, Guam, the United States Virgin Is-
lands, and any other territory or possession of the
United States.
(9) UNITED
STATES
NATIONAL.—The term
‘‘United States national’’ means—
(A) a natural person who is a citizen of the
United States or who owes permanent alle-
giance to the United States;
(B) a corporation or other legal entity
which is organized under the laws of the United
States, any State or territory thereof, or the
District of Columbia, if natural persons who are
nationals of the United States own, directly or
indirectly, more than 50 percent of the out-
standing capital stock or other beneficial inter-
est in such legal entity; and
(C) any foreign subsidiary of a corporation
or other legal entity described in subparagraph
(B).
Æ