I 
114TH CONGRESS 
1ST SESSION H. R. 4258 
To impose sanctions against any entity with respect to which Iran’s Revolu-
tionary Guard Corps owns, directly or indirectly, a 20 percent or greater 
interest in the entity, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 15, 2015 
Mr. ROSKAM (for himself, Mr. NUNES, Mr. POMPEO, and Mr. ZELDIN) intro-
duced the following bill; which was referred to the Committee on Foreign 
Affairs, and in addition to the Committee on Financial Services, for a 
period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
A BILL 
To impose sanctions against any entity with respect to which 
Iran’s Revolutionary Guard Corps owns, directly or indi-
rectly, a 20 percent or greater interest in the entity, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Quarantining the Aya-
tollah’s 
State-Sponsored 
Aggression 
and 
Militancy 
(QASSAM) Act’’. 
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TITLE 
I—IRAN’S 
REVOLU-
TIONARY 
GUARD 
CORPS 
WATCH LIST AND REPORT 
SEC. 101. FINDINGS. 
Congress finds the following: 
(1) Iran’s Revolutionary Guard Corps (IRGC) 
threatens the national security of the United States 
and United States allies. 
(2) The IRGC provides direct sponsorship and 
support to numerous foreign terrorist organizations, 
including Hamas and Hezbollah, and maintains sup-
port for the Bashar al-Assad regime in Syria which 
is responsible for hundreds of thousands of deaths. 
(3) The United States holds the IRGC respon-
sible for severe and continuing human rights viola-
tions against the Iranian people, including unlawful 
arrests, torture, and harassment. 
(4) The United States currently upholds sanc-
tions against the IRGC for its support of terrorism 
and human rights abuses. 
(5) The Office of Foreign Assets Control of the 
Department of the Treasury currently includes the 
IRGC on the list of specially designated nationals 
and blocked persons maintained by the Office of 
Foreign Assets Control of the Department of the 
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Treasury (in this section referred to as the ‘‘SDN 
list’’). 
(6) The Office of Foreign Assets Control of the 
Department of the Treasury includes on the SDN 
list entities in which the IRGC owns a 50 percent 
or greater interest. The inclusion of an entity on the 
SDN list results in the blocking of all assets and 
property of such entity. This regulation, commonly 
termed the ‘‘50 percent rule’’, is codified in section 
561.405 of title 31, Code of Federal Regulations, 
and is the standard used by the Office of Foreign 
Assets Control when determining ownership of enti-
ties owned or controlled by blocked or sanctioned 
persons. 
(7) The IRGC maintains a powerful and expan-
sive presence throughout Iran’s financial, commer-
cial, and oil sectors, owning, controlling, operating, 
and influencing Iranian entities while producing rev-
enues estimated in the billions of dollars. According 
to the Department of the Treasury, ‘‘The IRGC has 
a growing presence in Iran’s financial and commer-
cial sectors and extensive economic interests in the 
defense production, construction, and oil industries, 
controlling billions of dollars in corporate business.’’. 
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(8) The IRGC has continuously practiced sanc-
tions evasion and deceptive business practices to 
conceal its ownership over Iranian entities, owning 
numerous Iranian entities which are not on the SDN 
list because IRGC ownership is below 50 percent, 
leaving such entities unsanctioned and open to busi-
ness. 
(9) As sanctions are lifted and Iran becomes 
more open to international commerce, the inter-
national community must be aware of any and all 
entities that are IRGC-owned, -controlled, -operated, 
or influenced, including those entities that do not 
make the threshold to be included on the SDN list. 
SEC. 102. IMPOSITION OF SANCTIONS AGAINST ENTITIES 
OWNED IN WHOLE OR IN PART BY IRGC. 
(a) IN GENERAL.—The President shall impose the 
sanctions described in subsection (b) against any entity 
with respect to which Iran’s Revolutionary Guard Corps 
owns, directly or indirectly, a 20 percent or greater inter-
est in the entity, regardless of whether the entity itself 
is included on the list of specially designated nationals and 
blocked persons maintained by the Office of Foreign As-
sets Control of the Department of the Treasury. 
(b) SANCTIONS DESCRIBED.— 
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(1) IN GENERAL.—The blocking, in accordance 
with the International Emergency Economic Powers 
Act (50 U.S.C. 1701 et seq.), of all transactions in 
all property and interests in property of an entity if 
such property and interests in property are in the 
United States, come within the United States, or are 
or come within the possession or control of a United 
States person. 
(2) INAPPLICABILITY
OF
NATIONAL
EMER-
GENCY REQUIREMENT.—The requirements of section 
202 of the International Emergency Economic Pow-
ers Act (50 U.S.C. 1701) shall not apply for pur-
poses of this section. 
(c) DEFINITIONS.—In this section: 
(1) PERSON.—The term ‘‘person’’ means an in-
dividual or entity. 
(2) 
UNITED
STATES
PERSON.—The 
term 
‘‘United States person’’ means— 
(A) a United States citizen or an alien law-
fully admitted for permanent residence to the 
United States; or 
(B) an entity organized under the laws of 
the United States or of any jurisdiction within 
the United States, including a foreign branch of 
such an entity. 
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SEC. 103. IRGC WATCH LIST AND REPORT. 
(a) IN GENERAL.—The Secretary of the Treasury 
shall establish, maintain, and publish in the Federal Reg-
ister a list of each entity with respect to which Iran’s Rev-
olutionary Guard Corps— 
(1) owns, directly or indirectly, any interest 
that is less than 20 percent in the entity; or 
(2) does not own any interest in the entity but 
maintains a presence on the board of directors of the 
entity or otherwise influences the actions, policies, or 
personnel decisions of the entity. 
(b) REPORT.—Not later than 90 days after the date 
of the enactment of the Act, and annually thereafter, the 
Secretary of the Treasury shall submit to Congress a re-
port on any changes to the list required by subsection (a). 
(c) REFERENCE.—The list required by subsection (a) 
shall be known as the ‘‘IRGC Watch List’’. 
SEC. 104. DEFINITIONS. 
Except as otherwise provided, in this title: 
(1) ENTITY.—The term ‘‘entity’’ means any 
corporation, business association, partnership, trust, 
society, or any other entity. 
(2) IRGC.—The term ‘‘IRGC’’ means Iran’s 
Revolutionary Guard Corps. 
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TITLE II—OTHER PROVISIONS 
SEC. 201. AUTHORITY OF STATES AND LOCAL GOVERN-
MENTS TO DIVEST FROM CERTAIN COMPA-
NIES THAT ENGAGE IN INVESTMENT OR BUSI-
NESS 
ACTIVITIES 
WITH 
IRAN’S 
REVOLU-
TIONARY GUARD CORPS. 
(a) IN GENERAL.—Subtitle B of title III of the Iran 
Threat Reduction and Syria Human Rights Act of 2012 
(Public Law 112–158; 126 Stat. 1247), is amended by 
adding at the end the following: 
‘‘SEC. 313. AUTHORITY OF STATES AND LOCAL GOVERN-
MENTS TO DIVEST FROM PERSONS THAT EN-
GAGE IN INVESTMENT OR BUSINESS ACTIVI-
TIES WITH IRAN’S REVOLUTIONARY GUARD 
CORPS. 
‘‘(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that the United States should support the decision 
of any State or local government that for moral, pruden-
tial, or reputational reasons divests from, or prohibits the 
investment of assets of the State or local government in, 
a person that engages in investment or business activities 
with Iran’s Revolutionary Guard Corps or Iran’s Revolu-
tionary Guard Corps-related companies, as long as Iran’s 
Revolutionary Guard Corps is subject to economic sanc-
tions imposed by the United States. 
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‘‘(b) AUTHORITY TO DIVEST.—Notwithstanding any 
other provision of law, a State or local government may 
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 or 
business activities with Iran’s Revolutionary Guard Corps 
or Iran’s Revolutionary Guard Corps-related companies 
described in subsection (c). 
‘‘(c) INVESTMENT
OR BUSINESS ACTIVITIES DE-
SCRIBED.—A person engages in investment or business ac-
tivities with Iran’s Revolutionary Guard Corps or Iran’s 
Revolutionary Guard Corps-related companies if the per-
son— 
‘‘(1) has a financial investment in Iran’s Revo-
lutionary Guard Corps or an Iran’s Revolutionary 
Guard Corps-related company; 
‘‘(2) owns, in whole or in part, an Iran’s Revo-
lutionary Guard Corps-related company; or 
‘‘(3) is a financial institution that extends cred-
it or financing to another person, for 45 days or 
more, if that person will use the credit or financing 
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for investment in an Iran’s Revolutionary Guard 
Corps-related company. 
‘‘(d) REQUIREMENTS.—Any measure taken by a 
State or local government under subsection (b) shall meet 
the following requirements: 
‘‘(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 
person 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 or business activities with 
Iran’s Revolutionary Guard Corps or Iran’s Revolu-
tionary Guard Corps-related companies 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 
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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 
business or investment activities with Iran’s Revolu-
tionary Guard Corps or Iran’s Revolutionary Guard 
Corps-related companies 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) or (i) 
is not preempted by any Federal law or regulation. 
‘‘(g) DEFINITIONS.—In this section: 
‘‘(1) 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 
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title I of the Employee Retirement Income Se-
curity Act of 1974 (29 U.S.C. 1001 et seq.). 
‘‘(2) 
INVESTMENT.—The 
‘investment’ 
in-
cludes— 
‘‘(A) a commitment or contribution of 
funds or property; 
‘‘(B) a loan or other extension of credit; 
and 
‘‘(C) the entry into or renewal of a con-
tract for goods or services. 
‘‘(h) EFFECTIVE DATE.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2) or subsection (i), this section applies to 
measures adopted by a State or local government be-
fore, on, or after the date of the enactment of this 
Act. 
‘‘(2) NOTICE REQUIREMENTS.—Except as pro-
vided in subsection (i), subsections (d) and (e) apply 
to measures adopted by a State or local government 
on or after the date of the enactment of this Act. 
‘‘(i) AUTHORIZATION FOR PRIOR ENACTED MEAS-
URES.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of this section or any other provision of 
law, a State or local government may enforce a 
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measure (without regard to the requirements of sub-
section (d), except as provided in paragraph (2)) 
adopted by the State or local government before the 
date of this section that provides for the divestment 
of assets of the State or local government from, or 
prohibits the investment of the assets of the State 
or local government in, any person that the State or 
local government determines, using credible informa-
tion available to the public, engages in business or 
investment activities with Iran’s Revolutionary 
Guard Corps or Iran’s Revolutionary Guard Corps- 
related companies (determined without regard to 
subsection (c)) or other business or investment ac-
tivities that are identified in the measure. 
‘‘(2) 
APPLICATION
OF
NOTICE
REQUIRE-
MENTS.—A measure described in paragraph (1) 
shall be subject to the requirements of paragraphs 
(1) and (2) and the first sentence of paragraph (3) 
of subsection (d) on and after the date that is 2 
years after the date of the enactment of this Act. 
‘‘(j) RULE OF CONSTRUCTION.—Nothing in this sec-
tion or any other provision of law authorizing sanctions 
with respect to Iran shall be construed to abridge the au-
thority of a State to issue and enforce rules governing the 
safety, soundness, and solvency of a financial institution 
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subject to its jurisdiction or the business of insurance pur-
suant to the Act of March 9, 1945 (15 U.S.C. 1011 et 
seq.) (commonly known as the ‘McCarran-Ferguson 
Act’).’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
for the Iran Threat Reduction and Syria Human Rights 
Act of 2012 is amended by adding after the item relating 
to section 312 the following: 
‘‘Sec. 313. Authority of States and local governments to divest from certain 
companies that engage in investment or business activities with 
Iran’s Revolutionary Guard Corps.’’. 
TITLE III—TERMINATION 
SEC. 301. TERMINATION. 
This Act and the amendments made by this Act shall 
terminate on the date that is 30 days after the date on 
which the President makes the certification described in 
section 401(a) of the Comprehensive Iran Sanctions, Ac-
countability, and Divestment Act of 2010 (22 U.S.C. 
8551(a)). 
Æ 
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