‘‘Sec. 1046. Rollover of gain from divesting certain qualified securities of busi-
ness entities engaged in discouraged activities in Iran or 
Sudan.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to with respect to sales of securities 
after the date of the enactment of this Act. 
TITLE 
VI—PROHIBITION 
ON 
UNITED 
STATES 
GOVERN-
MENT CONTRACTS AND IN-
VESTMENT FOR COMPANIES 
CONDUCTING 
BUSINESS 
IN 
IRAN 
SEC. 601. PROHIBITION ON UNITED STATES GOVERNMENT 
CONTRACTS. 
(a) CERTIFICATION REQUIREMENT.—The head of 
each executive agency shall ensure that each contract with 
a company entered into by such executive agency for the 
procurement of goods or services or agreement for the use 
of Federal funds as part of a grant, loan, or loan guar-
antee, the provision of insurance or reinsurance, or the 
provision of technical assistance to a company, includes 
a clause that requires the company to certify to the con-
tracting officer that the company does not conduct busi-
ness operations in Iran described in section 605. 
(b) REMEDIES.— 
(1) IN GENERAL.—The head of an executive 
agency may impose remedies as provided in this sub-
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section if the head of the executive agency deter-
mines that the contractor has submitted a false cer-
tification under subsection (a) after the date the 
Federal Acquisition Regulation is revised pursuant 
to subsection (e) to implement the requirements of 
this section. 
(2) TERMINATION.—The head of an executive 
agency may terminate a covered contract with a 
company upon the determination of a false certifi-
cation under paragraph (1). 
(3) SUSPENSION AND DEBARMENT.—The head 
of an executive agency may debar or suspend a con-
tractor from eligibility for Federal contracts upon 
the determination of a false certification under para-
graph (1). The debarment period may not exceed 3 
years. 
(4) INCLUSION ON LIST OF PARTIES EXCLUDED 
FROM FEDERAL PROCUREMENT AND NONPROCURE-
MENT
PROGRAMS.—The Administrator of General 
Services shall include on the List of Parties Ex-
cluded from Federal Procurement and Nonprocure-
ment Programs maintained by the Administrator 
under part 9 of the Federal Acquisition Regulation 
issued under section 25 of the Office of Federal Pro-
curement Policy Act (41 U.S.C. 421) each con-
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tractor that is debarred, suspended, proposed for de-
barment or suspension, or declared ineligible by the 
head of an executive agency on the basis of a deter-
mination of a false certification under paragraph 
(1). 
(5) RULE
OF
CONSTRUCTION.—This section 
shall not be construed to limit the use of other rem-
edies available to the head of an executive agency or 
any other official of the Federal Government on the 
basis of a determination of a false certification 
under paragraph (1). 
(c) WAIVER.— 
(1) IN
GENERAL.—The President may waive 
the requirement of subsection (a) on a case-by-case 
basis if the President determines and certifies in 
writing to the appropriate congressional committees 
that it is in the national interest to do so. 
(2) REPORTING REQUIREMENT.—Not later than 
120 days after the date of the enactment of this Act 
and semi-annually thereafter, the Administrator for 
Federal Procurement Policy shall submit to the ap-
propriate congressional committees a report on waiv-
ers granted under paragraph (1). 
(d) IMPLEMENTATION THROUGH THE FEDERAL AC-
QUISITION REGULATION.—Not later than 120 days after 
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the date of the enactment of this Act, the Federal Acquisi-
tion Regulation issued pursuant to section 25 of the Office 
of Federal Procurement Policy Act (41 U.S.C. 421) shall 
be revised to provide for the implementation of the re-
quirements of this section. 
(e) REPORT.—Not later than one year after the date 
the Federal Acquisition Regulation is revised pursuant to 
subsection (e) to implement the requirements of this sec-
tion, the Administrator of General Services, with the as-
sistance of other executive agencies, shall submit to the 
Office of Management and Budget and the appropriate 
congressional committees a report on the actions taken 
under this section. 
SEC. 602. AUTHORITY OF STATE AND LOCAL GOVERN-
MENTS TO PROHIBIT CONTRACTS. 
Notwithstanding any other provision of law, a State 
or local government may adopt and enforce measures to 
prohibit the State or local government, as the case may 
be, from entering into or renewing a contract for the pro-
curement of goods or services with persons that conduct 
business operations in Iran described in section 605. 
SEC. 603. UNITED STATES PENSION PLANS. 
(a) DIVESTITURE FROM IRAN.—The managers of 
United States Government pension plans or thrift savings 
plans, shall take, to the extent consistent with the legal 
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and fiduciary duties otherwise imposed on them, imme-
diate steps to divest all investments in any entity with re-
spect to which sanctions are applied for activities de-
scribed in section 5(a) of the Iran Sanctions Act of 1996 
(Public Law 104–172; 50 U.S.C. 1701 note), as amended 
by this Act, section 302(a) of this Act, or section 106(a) 
of the Comprehensive Iran Sanctions, Accountability, and 
Divestment Act of 2010 (Public Law 111–195; 22 U.S.C. 
8515). 
(b) PROHIBITION ON FUTURE INVESTMENT.—The 
managers of United States Government pension plans or 
thrift savings plans shall ensure that there is no future 
investment in any entity described in subsection (a) for 
the duration of the period of time during which the entity 
is sanctioned under the applicable provision of law de-
scribed in subsection (a). 
SEC. 604. SUNSET. 
This title shall terminate 30 days after the date on 
which— 
(1) the President has certified to Congress that 
the Government of Iran has ceased providing sup-
port for acts of international terrorism and no 
longer satisfies the requirements for designation as 
a state-sponsor of terrorism for purposes of section 
6(j) of the Export Administration Act of 1979, sec-
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tion 620A of the Foreign Assistance Act of 1961, 
section 40 of the Arms Export Control Act, or any 
other provision of law; and 
(2) Iran has permanently ceased the pursuit, 
acquisition, and development of nuclear, biological, 
and chemical weapons and missiles. 
SEC. 605. DEFINITIONS. 
In this title: 
(1) COMPANY.—The term ‘‘company’’ means— 
(A) a sole proprietorship, organization, as-
sociation, corporation, partnership, limited li-
ability company, venture, or other entity, its 
subsidiary or affiliate; and 
(B) includes a company owned or con-
trolled, either directly or indirectly, by the gov-
ernment of a foreign country, that is estab-
lished or organized under the laws of, or has its 
principal place of business in, such foreign 
country and includes United States subsidiaries 
of the same. 
(2) AFFILIATE.—The term ‘‘affiliate’’ means 
any individual or entity that directly or indirectly 
controls, is controlled by, or is under common con-
trol with, the company, including without limitation 
direct and indirect subsidiaries of the company. 
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(3) ENTITY.—The term ‘‘entity’’ means a sole 
proprietorship, a partnership, limited liability cor-
poration, association, trust, joint venture, corpora-
tion, or other organization. 
(4) FEDERAL
FUNDS.—The term ‘‘Federal 
funds’’ means a sum of money or other resources de-
rived from United States taxpayers, which the 
United States Government may provide to compa-
nies through government grants or loans, or through 
the terms of a contract with the Federal Govern-
ment, or through the Emergency Economic Sta-
bilization Act of 2008 ‘‘Troubled Asset Relief Pro-
gram’’ or other similar and related transaction vehi-
cles, including a grant, loan, or loan guarantee, the 
provision of insurance or reinsurance, or the provi-
sion of technical assistance. 
(5) BUSINESS OPERATIONS.—The term ‘‘busi-
ness operations’’ means— 
(A) carrying out any of the activities de-
scribed in section 5 (a) and (b) of the Iran 
Sanctions Act of 1996 (Public Law 104–172; 
50 U.S.C. 1701 note), as amended by this Act, 
that are sanctionable under such section; 
(B) providing sensitive technology (as de-
fined in section 106(c) of the Comprehensive 
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Iran Sanctions, Accountability, and Divestment 
Act of 2010 (Public Law 111–195; 22 U.S.C. 
8515(c)) to the Government of Iran; and 
(C) carrying out any of the activities de-
scribed in section 302(a) of this Act. 
(6) GOVERNMENT OF IRAN.—The term ‘‘Gov-
ernment of Iran’’ includes the Government of Iran, 
any political subdivision, agency, or instrumentality 
thereof, and any person owned or controlled by, or 
acting for or on behalf of, the Government of Iran. 
(7) PETROLEUM RESOURCES.— 
(A) IN GENERAL.—The term ‘‘petroleum 
resources’’ includes petroleum, petroleum by- 
products, oil or liquefied natural gas, oil or liq-
uefied natural gas tankers, and products 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. 
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(8) SENSITIVE TECHNOLOGY.—The term ‘‘sen-
sitive technology’’ means hardware, software, tele-
communications equipment, or any other technology 
that the President determines may be used by the 
Government of Iran— 
(A) to restrict the free flow of unbiased in-
formation in Iran; or 
(B) to disrupt, monitor, or otherwise re-
strict speech by the people of Iran. 
(9) 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. 
(10) EXECUTIVE AGENCY.—The term ‘‘execu-
tive agency’’ has the meaning given the term in sec-
tion 4 of the Office of Federal Procurement Policy 
Act (41 U.S.C. 403). 
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TITLE 
VII—TERMINATION 
OF 
LOAN 
DISBURSEMENTS 
TO 
IRAN 
FROM 
THE 
INTER-
NATIONAL BANK FOR RECON-
STRUCTION 
AND 
DEVELOP-
MENT 
SEC. 701. TERMINATION OF LOAN DISBURSEMENTS TO 
IRAN FROM THE INTERNATIONAL BANK FOR 
RECONSTRUCTION AND DEVELOPMENT. 
(a) IN GENERAL.—The President of the United 
States shall take all action available to seek a termination 
of disbursements of funds under loans made by the Inter-
national Bank for Reconstruction and Development to 
Iran. 
(b) REPORT TO THE CONGRESS.—On the date that 
is 6 months after the date of the enactment of this Act, 
and every 6 months thereafter, the President shall submit 
to the Committee on Financial Services of the House of 
Representatives and the Committee on Foreign Relations 
of the Senate a report on the efforts made by the United 
States to terminate the loan disbursements referred to in 
subsection (a). 
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SEC. 702. UNITED STATES OPPOSITION TO NEW COUNTRY 
ASSISTANCE STRATEGY FOR IRAN. 
(a) STATEMENT OF POLICY.—It is the policy of the 
United States to oppose a new Country Assistance Strat-
egy for Iran. 
(b) ACTIONS TO BE TAKEN IF THE WORLD BANK 
VIOLATES
THE POLICY
OR MAKES
A NEW LOAN
TO 
IRAN.—If, after the date of the enactment of this Act, the 
International Bank for Reconstruction and Development 
approves a Country Assistance Strategy for Iran, or ap-
proves a loan to Iran, the President of the United States 
shall— 
(1) terminate any contribution by the United 
States to the International Bank for Reconstruction 
and Development, the International Finance Cor-
poration, and the Multilateral Investment Guarantee 
Corporation for the fiscal year in which the Country 
Assistance Strategy or loan is approved, or (if loan 
disbursements to Iran for that fiscal year have been 
made by such institutions) for the following fiscal 
year; 
(2) prohibit the sale of debt instruments of the 
International Bank for Reconstruction and Develop-
ment in the United States, prohibit the purchase of 
any such debt instrument by any United States per-
son; and 
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(3) prohibit the United States Government and 
any state or municipal governmental entity from 
purchasing any such debt instrument. 
SEC. 703. SUNSET. 
Sections 701 and 702 shall terminate 30 days after 
the date on which the President has certified 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 for purposes of 
section 6(j) of the Export Administration Act of 
1979, section 620A of the Foreign Assistance Act of 
1961, section 40 of the Arms Export Control Act, 
or any other provision of law; and 
(2) Iran has ceased the pursuit, acquisition, 
and development of nuclear, biological, and chemical 
weapons and ballistic missiles and ballistic missile 
launch technology. 
SEC. 704. RULE OF INTERPRETATION. 
Nothing in section 701 or 702 shall be interpreted 
to affect United States contributions to, or the participa-
tion of the United States in, the International Develop-
ment Association. 
Æ 
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