Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Comprehensive Iran Sanctions, Accountability, and Di-
vestment Act of 2008’’. 
(a) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Support for diplomatic efforts relating to preventing Iran from acquir-
ing nuclear weapons. 
TITLE I—SANCTIONS 
Sec. 101. Definitions. 
Sec. 102. Clarification and expansion of definitions. 
Sec. 103. Economic sanctions relating to Iran. 
Sec. 104. Liability of parent companies for violations of sanctions by foreign 
subsidiaries. 
Sec. 105. Increased capacity for efforts to combat unlawful or terrorist financ-
ing. 
Sec. 106. Reporting requirements. 
Sec. 107. Sense of Congress regarding the imposition of sanctions on the Cen-
tral Bank of Iran. 
Sec. 108. Rule of construction. 
Sec. 109. Temporary increase in fee for certain consular services. 
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 com-
panies 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 Di-
version Concern. 
Sec. 304. Report on expanding diversion concern system to countries other than 
Iran.
TITLE IV—EFFECTIVE DATE; SUNSET 
Sec. 401. Effective date; sunset. 
SEC. 2. SUPPORT FOR DIPLOMATIC EFFORTS RELATING TO 
PREVENTING IRAN FROM ACQUIRING NU-
CLEAR WEAPONS. 
(a) SUPPORT FOR INTERNATIONAL DIPLOMATIC EF-
FORTS.—It is the sense of the Congress that— 
(1) the United States should use diplomatic and 
economic means to resolve the Iranian nuclear prob-
lem; 
(2) the United States should continue to sup-
port efforts in the International Atomic Energy 
Agency and the United Nations Security Council to 
bring about an end to Iran’s uranium enrichment 
program and its nuclear weapons program; and 
(3)(A) United Nations Security Council Resolu-
tion 1737 was a useful first step toward pressing 
Iran to end its nuclear weapons program; and 
(B) in light of Iran’s continued defiance of the 
international community, the United Nations Secu-
rity Council should adopt additional measures 
against Iran, including measures to prohibit invest-
ments in Iran’s energy sector. 
(b) PEACEFUL EFFORTS BY THE UNITED STATES.— 
Nothing in this Act shall be construed as authorizing the
use of force or the use of the United States Armed Forces 
against Iran. 
TITLE I—SANCTIONS 
SEC. 101. DEFINITIONS. 
In this title: 
(1) AGRICULTURAL
COMMODITY.—The term 
‘‘agricultural commodity’’ has the meaning given 
that term in section 102 of the Agricultural Trade 
Act of 1978 (7 U.S.C. 5602). 
(2) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ has the meaning given that term in section 
14(2) of the Iran Sanctions Act of 1996 (Public 
Law 104–172; 50 U.S.C. 1701 note). 
(3) EXECUTIVE AGENCY.—The term ‘‘executive 
agency’’ has the meaning given that term in section 
4 of the Office of Federal Procurement Policy Act 
(41 U.S.C. 403). 
(4) FAMILY MEMBER.—The term ‘‘family mem-
ber’’ means, with respect to an individual, the 
spouse, children, grandchildren, or parents of the in-
dividual. 
(5) INFORMATION AND INFORMATIONAL MATE-
RIALS.—The term ‘‘information and informational 
materials’’—
(A) means information and informational 
materials described in section 203(b)(3) of the 
International Emergency Economic Powers Act 
(50 U.S.C. 1702(b)(3)); and 
(B) does not include information or infor-
mational materials— 
(i) the exportation of which is other-
wise controlled— 
(I) under section 5 of the Export 
Administration Act of 1979 (50 
U.S.C. App. 2404) (as in effect pur-
suant to the International Emergency 
Economic Powers Act (50 U.S.C. 
1701 et seq.)); or 
(II) under section 6 of that Act 
(50 U.S.C. App. 2405), to the extent 
that such controls promote the non-
proliferation or antiterrorism policies 
of the United States; or 
(ii) with respect to which acts are pro-
hibited by chapter 37 of title 18, United 
States Code. 
(6) INVESTMENT.—The term ‘‘investment’’ has 
the meaning given that term in section 14(9) of the
Iran Sanctions Act of 1996 (Public Law 104–172; 
50 U.S.C. 1701 note). 
(7) IRANIAN
DIPLOMATS
AND
REPRESENTA-
TIVES OF OTHER GOVERNMENT AND MILITARY OR 
QUASI-GOVERNMENTAL
INSTITUTIONS
OF
IRAN.— 
The term ‘‘Iranian diplomats and representatives of 
other government and military or quasi-govern-
mental institutions of Iran’’ has the meaning given 
that term in section 14(11) of the Iran Sanctions 
Act of 1996 (50 U.S.C. 1701 note). 
(8) MEDICAL DEVICE.—The term ‘‘medical de-
vice’’ has the meaning given the term ‘‘device’’ in 
section 201 of the Federal Food, Drug, and Cos-
metic Act (21 U.S.C. 321). 
(9) MEDICINE.—The term ‘‘medicine’’ has the 
meaning given the term ‘‘drug’’ in section 201 of the 
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 
321). 
SEC. 102. CLARIFICATION AND EXPANSION OF DEFINI-
TIONS. 
(a) PERSON.—Section 14(13)(B) of the Iran Sanc-
tions Act of 1996 (50 U.S.C. 1701 note) is amended— 
(1) by inserting ‘‘financial institution, insurer, 
underwriter, guarantor, and any other business or-
ganization, including any foreign subsidiary, parent, 
or affiliate of the foregoing,’’ after ‘‘trust,’’; and 
(2) by inserting ‘‘, such as an export credit 
agency’’ before the semicolon. 
(b) PETROLEUM RESOURCES.—Section 14(14) of the 
Iran Sanctions Act of 1996 (50 U.S.C. 1701 note) is 
amended to read as follows: 
‘‘(14) PETROLEUM RESOURCES.— 
‘‘(A) PETROLEUM RESOURCES.—The term 
‘petroleum resources’ includes petroleum, petro-
leum by-products, oil or liquefied natural gas, 
oil or liquefied natural gas tankers, and prod-
ucts used to construct or maintain pipelines 
used to transport oil or compressed or liquefied 
natural gas. 
‘‘(B) 
PETROLEUM
BY-PRODUCTS.—The 
term ‘petroleum by-products’ means gasoline, 
kerosene, distillates, propane or butane gas, die-
sel fuel, residual fuel oil, and other goods classi-
fied in headings 2709 and 2710 of the Har-
monized Tariff Schedule of the United States.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect 120 days after the date of 
the enactment of this Act.
SEC. 103. ECONOMIC SANCTIONS RELATING TO IRAN. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, and in addition to any other sanction in effect, 
beginning on the date that is 120 days after the date of 
the enactment of this Act, the economic sanctions de-
scribed in subsection (b) shall apply with respect to Iran. 
(b) SANCTIONS.—The sanctions described in this 
subsection are the following: 
(1) PROHIBITION ON IMPORTS.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), no article of Iranian origin 
may be imported directly or indirectly into the 
United States. 
(B) EXCEPTION.—The prohibition in sub-
paragraph (A) does not apply to imports from 
Iran of information and informational mate-
rials. 
(2) PROHIBITION ON EXPORTS.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), no article of United States 
origin may be exported directly or indirectly to 
Iran. 
(B) EXCEPTIONS.—The prohibition in sub-
paragraph (A) does not apply to exports to Iran 
of—
(i) agricultural commodities, food, 
medicine, or medical devices; 
(ii) articles exported to Iran to pro-
vide humanitarian assistance to the people 
of Iran; 
(iii) information or informational ma-
terials; or 
(iv) goods, services, or technologies 
necessary to ensure the safe operation of 
commercial passenger aircraft produced in 
the United States if the exportation of 
such goods, services, or technologies is ap-
proved by the Secretary of the Treasury, in 
consultation with the Secretary of Com-
merce, pursuant to regulations for licens-
ing the exportation of such goods, services, 
or technologies, if appropriate. 
(3) FREEZING ASSETS.— 
(A) IN GENERAL.—At such time as the 
United States has access to the names of per-
sons in Iran, including Iranian diplomats and 
representatives of other government and mili-
tary or quasi-governmental institutions of Iran, 
that are determined to be subject to sanctions 
imposed under the authority of the Inter-
national Emergency Economic Powers Act (50 
U.S.C. 1701 et seq.) or any other provision of 
law relating to the imposition of sanctions with 
respect to Iran, the President shall take such 
action as may be necessary to freeze imme-
diately the funds and other assets belonging to 
any person so named, and any family members 
or associates of those persons so named to 
whom assets or property of those persons so 
named were transferred on or after January 1, 
2008. The action described in the preceding 
sentence includes requiring any United States 
financial institution that holds funds and assets 
of a person so named to report promptly to the 
Office of Foreign Assets Control information 
regarding such funds and assets. 
(B) ASSET
REPORTING
REQUIREMENT.— 
Not later than 14 days after a decision is made 
to freeze the property or assets of any person 
under this paragraph, the President shall report 
the name of such person to the appropriate con-
gressional committees. 
(4) 
UNITED
STATES
GOVERNMENT
CON-
TRACTS.—The head of an executive agency may not 
procure, or enter into a contract for the procurement
of, any goods or services from a person that meets 
the criteria for the imposition of sanctions under 
section 5(a) of the Iran Sanctions Act of 1996 (Pub-
lic Law 104–172; 50 U.S.C. 1701 note). 
(c) WAIVER.—The President may waive the applica-
tion of the sanctions described in subsection (b) if the 
President— 
(1) determines that such a waiver is in the na-
tional interest of the United States; and 
(2) submits to the appropriate congressional 
committees a report describing the reasons for the 
determination. 
SEC. 104. LIABILITY OF PARENT COMPANIES FOR VIOLA-
TIONS OF SANCTIONS BY FOREIGN SUBSIDI-
ARIES. 
(a) DEFINITIONS.—In this section: 
(1) ENTITY.—The term ‘‘entity’’ means a part-
nership, association, trust, joint venture, corpora-
tion, or other organization. 
(2) OWN OR CONTROL.—The term ‘‘own or con-
trol’’ means, with respect to an entity— 
(A) to hold more than 50 percent of the 
equity interest by vote or value in the entity; 
(B) to hold a majority of seats on the 
board of directors of the entity; or
(C) to otherwise control the actions, poli-
cies, or personnel decisions of the entity. 
(3) 
SUBSIDIARY.—The 
term 
‘‘subsidiary’’ 
means an entity that is owned or controlled, directly 
or indirectly, by a United States person. 
(4) 
UNITED
STATES
PERSON.—The 
term 
‘‘United States person’’ means— 
(A) a natural person who is a citizen, resi-
dent, or national of the United States; and 
(B) an entity that is organized under the 
laws of the United States, any State or terri-
tory thereof, or the District of Columbia, if nat-
ural persons described in subparagraph (A) own 
or control the entity. 
(b) IN GENERAL.—A United States person shall be 
subject to a penalty for a violation of the provisions of 
Executive Order 12959 (50 U.S.C. 1701 note) or Execu-
tive Order 13059 (50 U.S.C. 1701 note), or any other pro-
hibition on transactions with respect to Iran imposed 
under the authority of the International Emergency Eco-
nomic Powers Act (50 U.S.C. 1701 et seq.), if— 
(1) the President determines that the United 
States person establishes or maintains a subsidiary 
outside of the United States for the purpose of cir-
cumventing such provisions; and
(2) that subsidiary engages in an act that, if 
committed in the United States or by a United 
States person, would violate such provisions. 
(c) WAIVER.—The President may waive the applica-
tion of subsection (b) if the President— 
(1) determines that such a waiver is in the na-
tional interest of the United States; and 
(2) submits to the appropriate congressional 
committees a report describing the reasons for the 
determination. 
(d) EFFECTIVE DATE.— 
(1) IN GENERAL.—Subsection (b) shall take ef-
fect on the date of the enactment of this Act and 
apply with respect to acts described in subsection 
(b)(2) that are— 
(A) commenced on or after the date of the 
enactment of this Act; or 
(B) except as provided in paragraph (2), 
commenced before such date of enactment, if 
such acts continue on or after such date of en-
actment. 
(2) EXCEPTION.—Subsection (b) shall not 
apply with respect to an act described in paragraph 
(1)(B) by a subsidiary owned or controlled by a 
United States person if the United States person di-
vests or terminates its business with the subsidiary 
not later than 90 days after such date of enactment. 
SEC. 105. INCREASED CAPACITY FOR EFFORTS TO COMBAT 
UNLAWFUL OR TERRORIST FINANCING. 
(a) FINDING.—Congress finds that the work of the 
Office of Terrorism and Financial Intelligence of the De-
partment of the Treasury, which includes the Office of 
Foreign Assets Control and the Financial Crimes Enforce-
ment Network, is critical to ensuring that the inter-
national financial system is not used for purposes of sup-
porting terrorism and developing weapons of mass de-
struction. 
(b) AUTHORIZATION OF APPROPRIATIONS FOR OF-
FICE OF TERRORISM AND FINANCIAL INTELLIGENCE.— 
There is authorized to be appropriated to the Secretary 
of the Treasury for the Office of Terrorism and Financial 
Intelligence— 
(1) $61,712,000 for fiscal year 2009; and 
(2) such sums as may be necessary for each of 
fiscal years 2010 and 2011. 
(c) AUTHORIZATION OF APPROPRIATIONS FOR THE 
FINANCIAL CRIMES ENFORCEMENT NETWORK.—Section 
310(d)(1) of title 31, United States Code, is amended by 
striking ‘‘such sums as may be necessary for fiscal years 
2002, 2003, 2004, and 2005’’ and inserting ‘‘$91,335,000
for fiscal year 2009 and such sums as may be necessary 
for each of fiscal years 2010 and 2011’’. 
SEC. 106. REPORTING REQUIREMENTS. 
(a) FOREIGN INVESTMENT IN IRAN.— 
(1) IN
GENERAL.—Not later than 180 days 
after the date of the enactment of this Act, the 
President shall submit to the appropriate congres-
sional committees a report on— 
(A) 
any 
foreign 
investments 
of 
$20,000,000 or more made in Iran’s energy 
sector on or after January 1, 2008, and before 
the date on which the President submits the re-
port; and 
(B) the determination of the President on 
whether each such investment qualifies as a 
sanctionable offense under section 5(a) of the 
Iran Sanctions Act of 1996 (Public Law 104– 
172; 50 U.S.C. 1701 note). 
(2) SUBSEQUENT REPORTS.—Not later than 1 
year after the date of the enactment of this Act, and 
every 180 days thereafter, the President shall sub-
mit to the appropriate congressional committees a 
report on— 
(A) 
any 
foreign 
investments 
of 
$20,000,000 or more made in Iran’s energy
sector during the 180-day period preceding the 
submission of the report; and 
(B) the determination of the President on 
whether each such investment qualifies as a 
sanctionable offense under section 5(a) of the 
Iran Sanctions Act of 1996 (Public Law 104– 
172; 50 U.S.C. 1701 note). 
(b) FORM OF REPORTS.—The reports required under 
subsection (a) shall be submitted in unclassified form, but 
may contain a classified annex. 
SEC. 107. SENSE OF CONGRESS REGARDING THE IMPOSI-
TION OF SANCTIONS ON THE CENTRAL BANK 
OF IRAN. 
Congress urges the President, in the strongest terms, 
to consider immediately using the authority of the Presi-
dent to impose sanctions on the Central Bank of Iran and 
any other Iranian bank engaged in proliferation activities 
or support of terrorist groups. 
SEC. 108. RULE OF CONSTRUCTION. 
Nothing in this title shall be construed to affect any 
provision of title I of the Iran Freedom Support Act (Pub-
lic Law 109–293; 50 U.S.C. 1701 note).
SEC. 109. TEMPORARY INCREASE IN FEE FOR CERTAIN 
CONSULAR SERVICES. 
(a) INCREASE IN FEE.—Notwithstanding any other 
provision of law, not later than 120 days after the date 
of the enactment of this Act, the Secretary of State shall 
increase by $1.00 the fee or surcharge assessed under sec-
tion 140(a) of the Foreign Relations Authorization Act, 
Fiscal Years 1994 and 1995 (Public Law 103–236; 8 
U.S.C. 1351 note) over the amount of such fee or sur-
charge as of such date for processing machine readable 
nonimmigrant visas and machine readable combined bor-
der crossing identification cards and nonimmigrant visas. 
(b) DEPOSIT OF AMOUNTS.—Notwithstanding sec-
tion 140(a)(2) of the Foreign Relations Authorization Act, 
Fiscal Years 1994 and 1995, fees collected under the au-
thority of subsection (a) shall be deposited in the Treasury 
of the United States. 
(c) DURATION OF INCREASE.—The fee increase au-
thorized under subsection (a) shall terminate on the date 
that is nine months after the date on which such fee is 
first collected. 
TITLE 
II—DIVESTMENT 
FROM 
CERTAIN COMPANIES THAT 
INVEST IN IRAN 
SEC. 201. DEFINITIONS. 
In this title:
(1) ENERGY SECTOR.—The term ‘‘energy sec-
tor’’ refers to activities to develop petroleum or nat-
ural gas resources or nuclear power. 
(2) FINANCIAL
INSTITUTION.—The term ‘‘fi-
nancial institution’’ has the meaning given that term 
in section 14(5) of the Iran Sanctions Act of 1996 
(Public Law 104–172; 50 U.S.C. 1701 note). 
(3) IRAN.—The term ‘‘Iran’’ includes any agen-
cy or instrumentality of Iran. 
(4) PERSON.—The term ‘‘person’’ means— 
(A) a natural person, corporation, com-
pany, business association, partnership, society, 
trust, or any other nongovernmental entity, or-
ganization, or group; 
(B) any governmental entity or instrumen-
tality of a government, including a multilateral 
development institution (as defined in section 
1701(c)(3) of the International Financial Insti-
tutions Act (22 U.S.C. 262r(c)(3))); and 
(C) any successor, subunit, parent com-
pany, or subsidiary of any entity described in 
subparagraph (A) or (B). 
(5) STATE.—The term ‘‘State’’ means each of 
the several States, the District of Columbia, the 
Commonwealth of Puerto Rico, the United States
adopt and enforce measures that meet the requirements 
of subsection (d) to divest the assets of the State or local 
government from, or prohibit investment of the assets of 
the State or local government in, any person that the 
State or local government determines, using credible infor-
mation available to the public, engages in investment ac-
tivities in Iran described in subsection (c). 
(c) INVESTMENT ACTIVITIES DESCRIBED.—A person 
engages in investment activities in Iran described in this 
subsection if the person— 
(1) has an investment of $20,000,000 or 
more— 
(A) in the energy sector of Iran; or 
(B) in a person that provides oil or 
liquified natural gas tankers, or products used 
to construct or maintain pipelines used to 
transport oil or liquified natural gas, for the en-
ergy sector in Iran; or 
(2) is a financial institution that extends 
$20,000,000 or more in credit to another person, for 
45 days or more, if that person will use the credit 
to invest in the energy sector in Iran. 
(d) REQUIREMENTS.—The requirements referred to 
in subsection (b) that a measure taken by a State or local 
government must meet are the following:
(1) NOTICE.—The State or local government 
shall provide written notice to each person to which 
a measure is to be applied. 
(2) TIMING.—The measure shall apply to a per-
son not earlier than the date that is 90 days after 
the date on which written notice is provided to the 
person under paragraph (1). 
(3) OPPORTUNITY FOR HEARING.—The State 
or local government shall provide an opportunity to 
comment in writing to each person to which a meas-
ure is to be applied. If the person demonstrates to 
the State or local government that the person does 
not engage in investment activities in Iran described 
in subsection (c), the measure shall not apply to the 
person. 
(4) SENSE OF CONGRESS ON AVOIDING ERRO-
NEOUS
TARGETING.—It is the sense of Congress 
that a State or local government should not adopt 
a measure under subsection (b) with respect to a 
person unless the State or local government has 
made every effort to avoid erroneously targeting the 
person and has verified that the person engages in 
investment activities in Iran described in subsection 
(c).
(e) NOTICE
TO DEPARTMENT
OF JUSTICE.—Not 
later than 30 days after adopting a measure pursuant to 
subsection (b), a State or local government shall submit 
written notice to the Attorney General describing the 
measure. 
(f) NONPREEMPTION.—A measure of a State or local 
government authorized under subsection (b) is not pre-
empted by any Federal law or regulation. 
(g) DEFINITIONS.—In this section: 
(1) INVESTMENT.—The ‘‘investment’’ of assets, 
with respect to a State or local government, in-
cludes— 
(A) a commitment or contribution of as-
sets; 
(B) a loan or other extension of credit; and 
(C) the entry into or renewal of a contract 
for goods or services. 
(2) ASSETS.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the term ‘‘assets’’ refers to 
public monies and includes any pension, retire-
ment, annuity, or endowment fund, or similar 
instrument, that is controlled by a State or 
local government.
(B) EXCEPTION.—The term ‘‘assets’’ does 
not include employee benefit plans covered by 
title I of the Employee Retirement Income Se-
curity Act of 1974 (29 U.S.C. 1001 et seq.). 
(h) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), this section applies to measures adopted 
by a State or local government before, on, or after 
the date of the enactment of this Act. 
(2) NOTICE REQUIREMENTS.—Subsections (d) 
and (e) apply to measures adopted by a State or 
local government on or after the date of the enact-
ment of this Act. 
SEC. 203. SAFE HARBOR FOR CHANGES OF INVESTMENT 
POLICIES BY ASSET MANAGERS. 
(a) IN GENERAL.—Section 13(c)(1) of the Invest-
ment Company Act of 1940 (15 U.S.C. 80a–13(c)(1)) is 
amended to read as follows: 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of Federal or State law, no person may 
bring any civil, criminal, or administrative action 
against any registered investment company, or any 
employee, officer, director, or investment adviser 
thereof, based solely upon the investment company 
divesting from, or avoiding investing in, securities
issued by persons that the investment company de-
termines, using credible information available to the 
public— 
‘‘(A) conduct or have direct investments in 
business operations in Sudan described in sec-
tion 3(d) of the Sudan Accountability and Di-
vestment Act of 2007 (50 U.S.C. 1701 note); or 
‘‘(B) engage in investment activities in 
Iran described in section 202(c) of the Com-
prehensive Iran Sanctions, Accountability, and 
Divestment Act of 2008.’’. 
(b) SEC REGULATIONS.—Not later than 120 days 
after the date of the enactment of this Act, the Securities 
and Exchange Commission shall issue any revisions the 
Commission determines to be necessary to the regulations 
requiring disclosure by each registered investment com-
pany that divests itself of securities in accordance with 
section 13(c) of the Investment Company Act of 1940 to 
include divestments of securities in accordance with para-
graph (1)(B) of such section, as added by subsection (a). 
SEC. 204. SENSE OF CONGRESS REGARDING CERTAIN 
ERISA PLAN INVESTMENTS. 
It is the sense of Congress that a fiduciary of an em-
ployee benefit plan, as defined in section 3(3) of the Em-
ployee Retirement Income Security Act of 1974 (29
U.S.C. 1002(3)), may divest plan assets from, or avoid 
investing plan assets in, any person the fiduciary deter-
mines engages in investment activities in Iran described 
in section 202(c) of this title, without breaching the re-
sponsibilities, obligations, or duties imposed upon the fidu-
ciary by section 404 of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1104), if— 
(1) the fiduciary makes such determination 
using credible information that is available to the 
public; and 
(2) such divestment or avoidance of investment 
is conducted in accordance with section 2509.94–1 
of title 29, Code of Federal Regulations (as in effect 
on the day before the date of the enactment of this 
Act). 
TITLE 
III—PREVENTION 
OF 
TRANSSHIPMENT, 
REEXPOR-
TATION, OR DIVERSION OF 
SENSITIVE ITEMS TO IRAN 
SEC. 301. DEFINITIONS. 
In this title: 
(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means—
(A) the Committee on Banking, Housing, 
and Urban Affairs, the Committee on Foreign 
Relations, and the Select Committee on Intel-
ligence of the Senate; and 
(B) the Committee on Financial Services, 
the Committee on Foreign Affairs, and the Per-
manent Select Committee on Intelligence of the 
House of Representatives. 
(2) END-USER.—The term ‘‘end-user’’ means 
an end-user as that term is used in the Export Ad-
ministration Regulations. 
(3) ENTITY OWNED OR CONTROLLED BY THE 
GOVERNMENT OF IRAN.—The term ‘‘entity owned or 
controlled by the Government of Iran’’ includes— 
(A) any corporation, partnership, associa-
tion, or other entity in which the Government 
of Iran owns a majority or controlling interest; 
and 
(B) any entity that is otherwise controlled 
by the Government of Iran. 
(4) EXPORT ADMINISTRATION REGULATIONS.— 
The term ‘‘Export Administration Regulations’’ 
means subchapter C of chapter VII of title 15, Code 
of Federal Regulations.
(5) GOVERNMENT.—The term ‘‘government’’ 
includes any agency or instrumentality of a govern-
ment. 
(6) IRAN.—The term ‘‘Iran’’ includes any agen-
cy or instrumentality of Iran. 
(7) STATE SPONSOR OF TERRORISM.—The term 
‘‘state sponsor of terrorism’’ means any country the 
government of which the Secretary of State has de-
termined, pursuant to— 
(A) section 6(j)(1)(A) of the Export Ad-
ministration Act of 1979 (50 U.S.C. App. 
2405(j)(1)(A)) (or any successor thereto), 
(B) section 40(d) of the Arms Export Con-
trol Act (22 U.S.C. 2780(d)), or 
(C) section 620A(a) of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2371(a)), 
is a government that has repeatedly provided sup-
port for acts of international terrorism. 
(8) TRANSSHIPMENT, REEXPORTATION, OR DI-
VERSION.—The term ‘‘transshipment, reexportation, 
or diversion’’ means the exportation, directly or indi-
rectly, by any means, of items that originated in the 
United States to an end-user whose identity cannot 
be verified or to an entity owned or controlled by the
Government of Iran in violation of the laws or regu-
lations of the United States, including by— 
(A) shipping such items through 1 or more 
foreign countries; or 
(B) by using false information regarding 
the country of origin of such items. 
SEC. 302. IDENTIFICATION OF LOCATIONS OF CONCERN 
WITH RESPECT TO TRANSSHIPMENT, RE-
EXPORTATION, OR DIVERSION OF CERTAIN 
ITEMS TO IRAN. 
Not later than 180 days after the date of the enact-
ment of this Act, and annually thereafter, the Director 
of National Intelligence shall submit to the Secretary of 
Commerce, the Secretary of State, the Secretary of the 
Treasury, and the appropriate congressional committees 
a report that identifies all countries that the Director de-
termines are of concern with respect to transshipment, re-
exportation, or diversion of items subject to the provisions 
of the Export Administration Regulations to an entity 
owned or controlled by the Government of Iran. 
SEC. 303. DESTINATIONS OF POSSIBLE DIVERSION CON-
CERN AND DESTINATIONS OF DIVERSION 
CONCERN. 
(a) DESTINATIONS OF POSSIBLE DIVERSION CON-
CERN.—
(1) DESIGNATION.—The Secretary of Com-
merce shall designate a country as a Destination of 
Possible Diversion Concern if the Secretary, in con-
sultation with the Secretary of State and the Sec-
retary of the Treasury, determines that such des-
ignation is appropriate to carry out activities to 
strengthen the export control systems of that coun-
try based on criteria that include— 
(A) the volume of items that originated in 
the United States that are transported through 
the country to end-users whose identities cannot 
be verified; 
(B) the inadequacy of the export and reex-
port controls of the country; 
(C) the unwillingness or demonstrated in-
ability of the government of the country to con-
trol diversion activities; and 
(D) the unwillingness or inability of the 
government of the country to cooperate with the 
United States in interdiction efforts. 
(2) STRENGTHENING
EXPORT
CONTROL
SYS-
TEMS
OF
DESTINATIONS
OF
POSSIBLE
DIVERSION 
CONCERN.—If the Secretary of Commerce designates 
a country as a Destination of Possible Diversion 
Concern under paragraph (1), the United States
shall initiate government-to-government activities de-
scribed in paragraph (3) to strengthen the export 
control systems of the country. 
(3) GOVERNMENT-TO-GOVERNMENT ACTIVITIES 
DESCRIBED.—The government-to-government activi-
ties described in this paragraph include— 
(A) cooperation by agencies and depart-
ments of the United States with counterpart 
agencies and departments in a country des-
ignated as a Destination of Possible Diversion 
Concern under paragraph (1) to— 
(i) develop or strengthen export con-
trol systems in the country; 
(ii) strengthen cooperation and facili-
tate enforcement of export control systems 
in the country; and 
(iii) promote information and data ex-
changes among agencies of the country 
and with the United States; and 
(B) efforts by the Office of International 
Programs of the Department of Commerce to 
strengthen the export control systems of the 
country to— 
(i) facilitate legitimate trade in high- 
technology goods; and
(ii) prevent terrorists and state spon-
sors of terrorism, including Iran, from ob-
taining nuclear, biological, and chemical 
weapons, defense technologies, components 
for improvised explosive devices, and other 
defense items. 
(b) DESTINATIONS OF DIVERSION CONCERN.— 
(1) DESIGNATION.—The Secretary of Com-
merce shall designate a country as a Destination of 
Diversion Concern if the Secretary, in consultation 
with the Secretary of State and the Secretary of the 
Treasury, determines— 
(A) that the government of the country is 
directly involved in transshipment, reexpor-
tation, or diversion of items that originated in 
the United States to end-users whose identities 
cannot be verified or to entities owned or con-
trolled by the Government of Iran; or 
(B) 12 months after the Secretary of Com-
merce designates the country as a Destination 
of Possible Diversion Concern under subsection 
(a)(1), that the country has failed— 
(i) to cooperate with the government- 
to-government activities initiated by the 
United States under subsection (a)(2); or
(ii) based on the criteria described in 
subsection (a)(1), to adequately strengthen 
the export control systems of the country. 
(2) LICENSING CONTROLS WITH RESPECT TO 
DESTINATIONS OF DIVERSION CONCERN.— 
(A) REPORT ON SUSPECT ITEMS.— 
(i) IN GENERAL.—Not later than 45 
days after the date of the enactment of 
this Act, the Secretary of Commerce, in 
consultation with the Director of National 
Intelligence, the Secretary of State, and 
the Secretary of the Treasury, shall submit 
to the appropriate congressional commit-
tees a report containing a list of items 
that, if the items were transshipped, reex-
ported, or diverted to Iran, could con-
tribute to— 
(I) Iran obtaining nuclear, bio-
logical, or chemical weapons, defense 
technologies, components for impro-
vised explosive devices, or other de-
fense items; or 
(II) support by Iran for acts of 
international terrorism.
(ii) CONSIDERATIONS FOR LIST.—In 
developing the list required under clause 
(i), the Secretary of Commerce shall con-
sider— 
(I) the items subject to licensing 
requirements under section 742.8 of 
title 15, Code of Federal Regulations 
(or any corresponding similar regula-
tion or ruling) and other existing li-
censing requirements; and 
(II) the items added to the list of 
items for which a license is required 
for exportation to North Korea by the 
final rule of the Bureau of Export Ad-
ministration of the Department of 
Commerce issued on June 19, 2000 
(65 Fed. Reg. 38148; relating to ex-
port restrictions on North Korea). 
(B) LICENSING REQUIREMENT.—Not later 
than 180 days after the date of the enactment 
of this Act, the Secretary of Commerce shall re-
quire a license to export an item on the list re-
quired under subparagraph (A)(i) to a country 
designated as a Destination of Diversion Con-
cern.
(3) WAIVER.—The President may waive the im-
position of the licensing requirement under para-
graph (2)(B) with respect to a country designated as 
a Destination of Diversion Concern if the Presi-
dent— 
(A) determines that such a waiver is in the 
national interest of the United States; and 
(B) submits to the appropriate congres-
sional committees a report describing the rea-
sons for the determination. 
(c) TERMINATION OF DESIGNATION.—The designa-
tion of a country as a Destination of Possible Diversion 
Concern or a Destination of Diversion Concern shall ter-
minate on the date on which the Secretary of Commerce 
determines, based on the criteria described in subpara-
graphs (A) through (D) of subsection (a)(1), and certifies 
to Congress and the President that the country has ade-
quately strengthened the export control systems of the 
country to prevent transshipment, reexportation, and di-
version of items through the country to end-users whose 
identities cannot be verified or to entities owned or con-
trolled by the Government of Iran. 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as may be 
necessary to carry out this section.
SEC. 304. REPORT ON EXPANDING DIVERSION CONCERN 
SYSTEM TO COUNTRIES OTHER THAN IRAN. 
Not later than 180 days after the date of the enact-
ment of this Act, the Director of National Intelligence, in 
consultation with the Secretary of Commerce, the Sec-
retary of State, and the Secretary of the Treasury, shall 
submit to the appropriate congressional committees a re-
port that— 
(1) identifies any country that the Director de-
termines may be transshipping, reexporting, or di-
verting items subject to the provisions of the Export 
Administration Regulations to another country if 
such other country— 
(A) is seeking to obtain nuclear, biological, 
or chemical weapons, defense technologies, com-
ponents for improvised explosive devices, or 
other defense items; or 
(B) provides support for acts of inter-
national terrorism; and 
(2) assesses the feasability and advisability of 
expanding the system established under section 303 
for designating countries as Destinations of Possible 
Diversion Concern and Destinations of Diversion 
Concern to include countries identified under para-
graph (1).
TITLE IV—EFFECTIVE DATE; 
SUNSET 
SEC. 401. EFFECTIVE DATE; SUNSET. 
(a) EFFECTIVE DATE.—Except as provided in sec-
tions 102, 103, 104 and 202, this Act and the amend-
ments made by this Act take effect on the date of the 
enactment of this Act. 
(b) SUNSET.—The provisions of this Act shall termi-
nate on the date that is 30 days after the date on which 
the President certifies to Congress that— 
(1) the Government of Iran has ceased pro-
viding support for acts of international terrorism 
and no longer satisfies the requirements for designa-
tion as a state sponsor of terrorism under— 
(A) section 6(j)(1)(A) of the Export Ad-
ministration Act of 1979 (50 U.S.C. App. 
2405(j)(1)(A)) (or any successor thereto); 
(B) section 40(d) of the Arms Export Con-
trol Act (22 U.S.C. 2780(d)); or 
(C) section 620A(a) of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2371(a)); and 
(2) Iran has ceased the pursuit, acquisition, 
and development of nuclear, biological, and chemical
weapons and ballistic missiles and ballistic missile 
launch technology. 
Passed the House of Representatives September 26, 
2008. 
Attest: 
Clerk.
110TH CONGRESS 
2D SESSION 
H. R. 7112 
AN ACT 
To impose sanctions with respect to Iran, to pro-
vide for the divestment of assets in Iran by State 
and local governments and other entities, and to 
identify locations of concern with respect to 
transshipment, reexportation, or diversion of cer-
tain sensitive items to Iran.