Union Calendar No. 308
104TH CONGRESS
2D SESSION
H. R. 3107
[Report No. 104–523, Parts I and II]
A BILL
To impose sanctions on persons exporting certain
goods or technology that would enhance Iran’s
ability to explore for, extract, refine, or transport
by pipeline petroleum resources, and for other
purposes.
JUNE 14, 1996
Reported from the Committee on Ways and Means with
amendments, committed to the Committee of the
Whole House on the State of the Union, and ordered
to be printed
IB
Union Calendar No. 308
104TH CONGRESS
2D SESSION
H. R. 3107
[Report No. 104–523, Parts I and II]
To impose sanctions on persons exporting certain goods or technology that
would enhance Iran’s ability to explore for, extract, refine, or transport
by pipeline petroleum resources, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 19, 1996
Mr. GILMAN (for himself, Mr. BERMAN, Mr. GEJDENSON, Mr. BURTON of In-
diana, Mr. KING, Mr. SHAW, and Mr. FORBES) introduced the following
bill; which was referred to the Committee on International Relations, and
in addition to the Committees on Banking and Financial Services, Ways
and Means, and Government Reform and Oversight, 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 committee
concerned
APRIL 17, 1996
Reported from the Committee on International Relations with amendments
[Strike out all after the enacting clause and insert the part printed in italic]
APRIL 17, 1996
Referral to the Committees on Banking and Financial Services, Ways and
Means, and Government Reform and Oversight extended for a period
ending not later than May 3, 1996
MAY 2, 1996
The Committees on Banking and Financial Services and Government Reform
and Oversight discharged
MAY 2, 1996
Referral to the Committee on Ways and Means extended for a period ending
not later than May 10, 1996
MAY 10, 1996
Referral to the Committee on Ways and Means extended for a period ending
not later than May 17, 1996
MAY 16, 1996
Referral to the Committee on Ways and Means extended for a period ending
not later than May 31, 1996
MAY 30, 1996
Referral to the Committee on Ways and Means extended for a period ending
not later than June 7, 1996
JUNE 7, 1996
Referral to the Committee on Ways and Means extended for a period ending
not later than June 11, 1996
JUNE 11, 1996
Referral to the Committee on Ways and Means extended for a period ending
not later than June 14, 1996
JUNE 14, 1996
Additional sponsors: Mr. WARD, Mr. LEWIS of Georgia, Mr. FRELINGHUYSEN,
Ms. FURSE, Mr. MCCRERY, Mr. REED, Mr. LAHOOD, Mr. CAMPBELL,
Ms. SLAUGHTER, Mr. BENTSEN, Mrs. ROUKEMA, Mr. LANTOS, Mr.
TORRICELLI, Mr. ROYCE, Mr. ENGLISH of Pennsylvania, Mr. ZIMMER,
Mr. FILNER, Mr. FOX of Pennsylvania, Mr. BUNN of Oregon, Mr.
BARCIA, Mr. DIAZ-BALART, Mr. MEEHAN, Mr. EHRLICH, Mr.
CUNNINGHAM, Miss COLLINS of Michigan, Mr. LIPINSKI, Mr. ENGEL,
Mr. FRANK of Massachusetts, Mr. SANFORD, Mr. FUNDERBURK, Ms.
PRYCE, Mr. KASICH, Mrs. MEEK of Florida, Mr. MCCOLLUM, Mr. TRAFI-
CANT, Mr. KNOLLENBERG, Mr. STARK, Mr. PORTER, Mr. PAXON, Mr.
DEUTSCH, Mr. SMITH of New Jersey, Mr. FRAZER, Mr. METCALF, Mr.
EVANS, Mr. BRYANT of Texas, Mr. SAXTON, Mr. HOUGHTON, Mr. DUR-
BIN, Ms. KAPTUR, Mr. SOUDER, Mr. MCHUGH, Ms. ROYBAL-ALLARD,
Mr. MARKEY, Mr. OBERSTAR, Mrs. THURMAN, Mr. SISISKY, Ms.
LOFGREN, Mr. LOBIONDO, Mrs. LOWEY, Mr. SHAYS, Mr. LATOURETTE,
Mr. CARDIN, Mr. KLECZKA, Mr. FOLEY, Mr. YATES, Mr. ACKERMAN,
Mr. TORRES, Mr. COYNE, Mr. TOWNS, Mr. COOLEY of Oregon, Ms.
PELOSI, Mr. DEFAZIO, Mr. MATSUI, Mr. KENNEDY of Rhode Island, Mr.
KLUG, Mr. CALVERT, Mr. BLUTE, Mr. RADANOVICH, Mr. ENSIGN, Mr.
HORN, Mr. ROEMER, Mr. HALL of Ohio, Mrs. CUBIN, Ms. ROS-
LEHTINEN, Mr. WHITE, Mr. BREWSTER, Mr. HASTINGS of Florida, Mr.
SCHAEFER, Mr. COBURN, Mr. TORKILDSEN, Mr. GRAHAM, Mr. FAZIO of
California, Mr. CAMP, Mr. HINCHEY, Mr. LEVIN, Ms. ESHOO, Mr. DEL-
LUMS, Mr. HAYWORTH, Mr. DOYLE, Mr. JOHNSON of South Dakota, Mr.
CLAY, Mr. HOSTETTLER, Mr. DUNCAN, Mr. SCHUMER, Mr. LAZIO of
New York, Ms. MOLINARI, Mr. TEJEDA, Mr. BOEHLERT, Mr. MILLER of
California, Mr. SHADEGG, Mr. BROWN of California, Mr. CHABOT, Mr.
OWENS, Mr. BAKER of Louisiana, Mrs. MALONEY, Mr. BORSKI, Mr.
MCNULTY, Mr. TATE, Mr. HOLDEN, Mr. FARR of California, Mr.
LINDER, Mr. NEY, Mr. NADLER, Mr. WAXMAN, Mr. ALLARD, Mr.
FRANKS of New Jersey, Mr. SCHIFF, Mr. SABO, Mr. STOCKMAN, Mr.
PASTOR, Mr. MARTINI, Ms. WOOLSEY, Mrs. KENNELLY, Mrs. SCHROE-
DER, Mr. ANDREWS, Mrs. MORELLA, Mrs. SMITH of Washington, Mr.
CHAPMAN, Mr. DOOLEY of California, Mr. KENNEDY of Massachusetts,
Mr. MARTINEZ, Mr. POMEROY, Mr. CUMMINGS, Ms. MCCARTHY, Mr.
BROWDER, Mrs. VUCANOVICH, Mr. PETERSON
of Minnesota, Mr.
SCARBOROUGH, Mr. TALENT, Mr. COSTELLO, and Mr. WELLER
JUNE 14, 1996
Reported from the Committee on Ways and Means with amendments, commit-
ted to the Committee of the Whole House on the State of the Union, and
ordered to be printed
[Strike out all after the enacting clause and insert the part printed in boldface roman]
[For text of introduced bill, see copy of bill as introduced on March 19, 1996]
A BILL
To impose sanctions on persons exporting certain goods or
technology that would enhance Iran’s ability to explore
for, extract, refine, or transport by pipeline petroleum
resources, 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 ‘‘Iran Oil Sanctions Act
of 1996’’.
SEC. 2. FINDINGS.
The Congress makes the following findings:
(1) The efforts of the Government of Iran to ac-
quire weapons of mass destruction and the means to
deliver them and its support of international terror-
ism endanger potentially the national security and
foreign policy interests of the United States and those
countries with which the United States shares com-
mon strategic and foreign policy objectives.
(2) The objective of preventing the proliferation
of weapons of mass destruction and international ter-
rorism through existing multilateral and bilateral
initiatives requires additional efforts to deny Iran the
financial means to sustain its nuclear, chemical, bio-
logical, 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.
SEC. 3. DECLARATION OF POLICY.
The Congress declares that it is the policy of the United
States to deny Iran the ability to support international ter-
rorism and to fund the development and acquisition of
weapons of mass destruction and the means to deliver them
by limiting the development of Iran’s ability to explore for,
extract, refine, or transport by pipeline petroleum resources
of Iran.
SEC. 4. IMPOSITION OF SANCTIONS.
(a) IN GENERAL.—Except as provided in subsection
(d), the President shall impose 2 or more of the sanctions
described in paragraphs (1) through (5) of section 5 if the
President determines that a person has, with actual knowl-
edge or reason to know, on or after the date of the enactment
of this Act—
(1) exported, transferred, or released to Iran, na-
tionals of Iran, or entities owned or controlled by
Iran or nationals of Iran any items included under
subparagraph (A) or (B) of section 9(a)(1) on the
List of Petroleum and Natural Gas-Related Goods
and Technology established under section 9 (in this
Act referred to as the ‘‘List’’) if the provision of such
items would significantly and materially enhance
Iran’s ability to develop petroleum resources of
Iran—
(A) whether or not the items are exported
from the United States; and
(B) whether or not the items are subject to
the jurisdiction of the United States; or
(2) made an investment of $40,000,000 or more
(or any combination of investments of at least
$10,000,000 each, which in the aggregate equals or ex-
ceeds $40,000,000 in any 12-month period), that di-
rectly contributed to the enhancement of Iran’s ability
to develop petroleum resources of Iran.
(b) PERSONS AGAINST WHICH THE SANCTIONS ARE
TO BE IMPOSED.—The sanctions described in subsection
(a) shall be imposed on—
(1) any person the President determines has car-
ried out the activities described in subsection (a); and
(2) any person the President determines—
(A) is a successor entity to the person re-
ferred to in paragraph (1);
(B) is a wholly owned subsidiary of the per-
son referred to in paragraph (1);
(C) is any other subsidiary of the person re-
ferred to in paragraph (1) if that subsidiary,
with actual knowledge or reason to know, en-
gaged in the activities referred to in paragraph
(1);
(D) is a parent of the person referred to in
paragraph (1) if that parent had actual knowl-
edge or reason to know of the activities referred
to in paragraph (1); or
(E) is an affiliate of the person referred to
in paragraph (1) if that affiliate, with actual
knowledge or reason to know, engaged in the ac-
tivities referred to in paragraph (1).
For purposes of this Act, any person or entity described
in this subsection shall be referred to as a ‘‘sanctioned per-
son’’.
(c) PUBLICATION IN FEDERAL REGISTER.—The Presi-
dent shall cause to be published in the Federal Register a
current list of sanctioned persons. The removal of persons
from, and the addition of persons to, the list, shall also be
so published.
(d) EXCEPTIONS.—The President shall not be required
to apply or maintain the sanctions under subsection (a)—
(1) in the case of procurement of defense articles
or defense services—
(A) under existing contracts or subcontracts,
including the exercise of options for production
quantities to satisfy requirements essential to the
national security of the United States;
(B) if the President determines in writing
that the person to which the sanctions would oth-
erwise be applied is a sole source supplier of the
defense articles or services, that the defense arti-
cles or services are essential, and that alternative
sources are not readily or reasonably available;
or
(C) if the President determines in writing
that such articles or services are essential to the
national security under defense coproduction
agreements;
(2) to products or services provided under con-
tracts entered into before the date on which the Presi-
dent publishes his intention to impose the sanctions;
(3) to—
(A) spare parts which are essential to Unit-
ed States products or production;
(B) component parts, but not finished prod-
ucts, essential to United States products or pro-
duction; or
(C) routine servicing and maintenance of
products, to the extent that alternative sources
are not readily or reasonably available;
(4) to information and technology essential to
United States products or production; or
(5) to medicines, medical supplies, or other hu-
manitarian items.
SEC. 5. DESCRIPTION OF SANCTIONS.
The sanctions to be imposed on a sanctioned person
under section 4(a) are as follows:
(1) EXPORT-IMPORT BANK ASSISTANCE FOR EX-
PORTS
TO
SANCTIONED
PERSONS.—The President
shall direct the Export-Import Bank of the United
States not to guarantee, insure, extend credit, or par-
ticipate in the extension of credit in connection with
the export of any goods or services to any sanctioned
person.
(2) TRADE
SANCTION.—The President shall
both—
(A) order the United States Government not
to issue any specific license and not to grant any
other specific permission or authority to export
any goods or technology to a sanctioned person
under—
(i) the Export Administration Act of
1979;
(ii) the Arms Export Control Act;
(iii) the Atomic Energy Act of 1954; or
(iv) any other statute that requires the
prior review and approval of the United
States Government as a condition for the
export or re-export of goods or services; and
(B) prohibit the importation into the Unit-
ed States of products produced by any sanc-
tioned person.
Subparagraph (B) includes application to the impor-
tation of any finished product or component part,
whether shipped directly by the sanctioned person or
by another entity.
(3) LOANS FROM UNITED STATES FINANCIAL IN-
STITUTIONS.—The United States Government shall
prohibit any United States financial institution from
making loans or providing credits to any sanctioned
person totaling more than $10,000,000 in any 12-
month period unless such person is engaged in activi-
ties to relieve human suffering and the loans or cred-
its are provided for such activities.
(4) 
PROHIBITIONS
ON
FINANCIAL
INSTITU-
TIONS.—The following prohibitions shall be imposed
against a sanctioned person that is a financial insti-
tution:
(A) DESIGNATION AS PRIMARY DEALER.—
Neither the Board of Governors of the Federal
Reserve System nor the Federal Reserve Bank of
New York may designate, or permit the continu-
ation of any prior designation of, such financial
institution as a primary dealer in United States
Government debt instruments.
(B) GOVERNMENT FUNDS.—Such financial
institution shall not serve as agent of the United
States Government or serve as repository for
United States Government funds.
(5) 
PROCUREMENT
SANCTION.—The 
United
States Government shall not procure, or enter into
any contract for the procurement of, any goods or
services from a sanctioned person.
SEC. 6. ADVISORY OPINIONS.
The Secretary of State may, upon the request of any
person, issue an advisory opinion to that person as to
whether a proposed activity by that person would subject
that person to sanctions under this Act. Any person who
relies in good faith on such an advisory opinion which
states that the proposed activity would not subject a person
to such sanctions, and any person who thereafter engages
in such activity, may not be made subject to such sanctions
on account of such activity.
SEC. 7. TERMINATION OF SANCTIONS.
(a) IN GENERAL.—The requirement under section 4 to
impose sanctions shall no longer have force or effect if the
President determines and certifies to the appropriate con-
gressional committees that Iran—
(1) has ceased its efforts to design, develop, man-
ufacture, or acquire—
(A) a nuclear explosive device or related
materials and technology;
(B) chemical and biological weapons; and
(C) ballistic missiles and ballistic missile
launch technology; and
(2) has been removed from the list of countries
the governments of which have been determined, for
purposes of section 6(j) of the Export Administration
Act of 1979, to have repeatedly provided support for
acts of international terrorism.
(b) ADDITIONAL REQUIREMENT WITH RESPECT TO
LIBYA.—The requirement under section 4 to impose sanc-
tions shall no longer have force and effect with respect to
Libya only if the President, in addition to making the de-
termination required by subsection (a), determines and cer-
tifies to the appropriate congressional committees that
Libya has fulfilled the requirements of United Nations Se-
curity Council Resolution 731, adopted January 21, 1992.
SEC. 8. DURATION OF SANCTIONS; PRESIDENTIAL WAIVER.
(a) DELAY OF SANCTIONS.—
(1) CONSULTATIONS.—If the President makes a
determination described in section 4(a) with respect
to a foreign person, the Congress urges the President
to initiate consultations immediately with the govern-
ment with primary jurisdiction over that foreign per-
son with respect to the imposition of sanctions under
this Act.
(2) ACTIONS
BY
GOVERNMENT
OF
JURISDIC-
TION.—In order to pursue consultations under para-
graph (1) with the government concerned, the Presi-
dent may delay imposition of sanctions under this
Act for up to 90 days. Following such consultations,
the President shall immediately impose sanctions un-
less the President determines and certifies to the Con-
gress that the government has taken specific and effec-
tive actions, including, as appropriate, the imposition
of appropriate penalties, to terminate the involvement
of the foreign person in the activities that resulted in
the determination by the President under section 4(a)
concerning such person.
(3) ADDITIONAL DELAY IN IMPOSITION OF SANC-
TIONS.—The President may delay the imposition of
sanctions for up to an additional 90 days if the
President determines and certifies to the Congress
that the government with primary jurisdiction over
the person concerned is in the process of taking the
actions described in paragraph (2).
(4) REPORT TO CONGRESS.—Not later than 45
days after making a determination under section
4(a), the President shall submit to the Committee on
Banking, Housing, and Urban Affairs of the Senate
and the Committee on International Relations of the
House of Representatives a report on the status of
consultations with the appropriate foreign govern-
ment under this subsection, and the basis for any de-
termination under paragraph (3).
(b) DURATION OF SANCTIONS.—A sanction imposed
under section 4(a) shall remain in effect for a period of
not less than 2 years from the date on which it is imposed.
(c) PRESIDENTIAL WAIVER.—
(1) AUTHORITY.—The President may waive the
requirement in section 4(a) to impose a sanction or
sanctions on a person described in section 4(b), and
may waive the continued imposition of a sanction or
sanctions under subsection (b) of this section, 30 days
or more after the President determines and so reports
to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Inter-
national Relations of the House of Representatives
that it is important to the national interest of the
United States to exercise such waiver authority.
(2) CONTENTS OF REPORT.—Any report under
paragraph (1) shall provide a specific and detailed
rationale for the determination under paragraph (1),
including—
(A) a description of the conduct that re-
sulted in the determination;
(B) in the case of a foreign person, an ex-
planation of the efforts to secure the cooperation
of the government with primary jurisdiction over
the sanctioned person to terminate or, as appro-
priate, penalize the activities that resulted in the
determination;
(C) an estimate as to the significance of the
provision of the items described in section
4(a)(1) or the investment described in section
4(a)(2), as the case may be, to Iran’s ability to
develop its petroleum resources; and
(D) a statement as to the response of the
United States in the event that the person con-
cerned engages in other activities that would be
subject to section 4(a).
(3) EFFECT
OF
REPORT
ON
WAIVER.—If the
President makes a report under paragraph (1) with
respect to a waiver of sanctions on a person described
in section 4(b), sanctions need not be imposed under
section 4(a) on that person during the 30-day period
referred to in paragraph (1).
SEC. 9. GOODS AND TECHNOLOGY SUBJECT TO EXPORT
CONTROL RESTRICTIONS.
(a) CONTROL LIST.—
(1) CONTENTS OF LIST.—For purposes of the de-
terminations to be made under section 4(a), the Presi-
dent, in consultation with the Secretary of State, the
Secretary of Energy, and the heads of other appro-
priate departments and agencies, shall establish and
maintain the List of Petroleum and Natural Gas-Re-
lated Goods and Technology. The List shall consist
of—
(A) all items listed in the Annex to Resolu-
tion 883 of the Security Council of the United
Nations, adopted November 11, 1993, and all
types of equipment, supplies, and grants of li-
censes prohibited by paragraph 5 of that resolu-
tion; and
(B) any other goods or technology (includ-
ing software and technical data) that the Presi-
dent determines could significantly or materially
contribute to Iran’s ability to develop its petro-
leum resources, including goods and technology
that are required for the development, produc-
tion, or use of facilities (including the repair,
maintenance, or operation of equipment) for the
development of petroleum resources.
(2) PUBLICATION.—The President, within 60
days after the date of the enactment of this Act, shall
cause the List to be published in the Federal Register,
together with any regulations issued with respect
thereto. Thereafter, any revisions to the List or
amendments to the regulations shall be published in
the same manner.
(3) ADVANCE NOTICE TO CONGRESS.—Not less
than 30 days in advance of the publication of the
List, it shall be provided to the Committee on Bank-
ing, Housing, and Urban Affairs of the Senate and
to the Committee on International Relations of the
House of Representatives. The President shall consult
with each such Committee regarding the content of the
List and shall respond to questions regarding the
basis for the inclusion on, or exclusion from, the List
of specified items.
(b) STATUTORY CONSTRUCTION.—Nothing in this sec-
tion prevents the inclusion on the List of any items that
may be produced in and traded internationally by persons
or entities in countries other than the United States.
SEC. 10. REPORTS REQUIRED.
(a) REPORT
ON CERTAIN INTERNATIONAL INITIA-
TIVES.—Not later than 6 months after the date of the enact-
ment of this Act, and every 6 months thereafter, the Presi-
dent shall transmit a report to the appropriate congres-
sional committees describing—
(1) the efforts of the President to mount a multi-
lateral campaign to persuade all countries to pressure
Iran to cease its nuclear, chemical, biological, and
missile weapons programs and its support of inter-
national terrorism;
(2) the efforts of the President to persuade other
governments to ask Iran to reduce the presence of Ira-
nian diplomats and representatives of other govern-
ment and military or quasi-governmental institutions
of Iran and to withdraw any such diplomats or rep-
resentatives who participated in the takeover of the
United States embassy in Tehran on November 4,
1979, or the subsequent holding of United States hos-
tages for 444 days;
(3) the extent to which the International Atomic
Energy Agency has established regular inspections of
all nuclear facilities in Iran, including those pres-
ently under construction; and
(4) Iran’s use of Iranian diplomats and rep-
resentatives of other government and military or
quasi-governmental institutions of Iran to promote
acts of terrorism or to develop or sustain Iran’s nu-
clear, chemical, biological, and missile weapons pro-
grams.
(b) OTHER REPORTS.—The President shall ensure the
continued transmittal to the Congress of reports describ-
ing—
(1) the nuclear and other military capabilities of
Iran, as required by section 601(a) of the Nuclear
Non-Proliferation Act of 1978 and section 1607 of the
National Defense Authorization Act for Fiscal Year
1993; and
(2) the support provided by Iran for acts of
international terrorism, as part of the Department of
State’s annual report on international terrorism.
SEC. 11. APPLICATION OF THE ACT TO LIBYA.
(a) IN GENERAL.—The sanctions of this Act, including
the terms and conditions for the imposition, duration, and
termination of sanctions, shall apply to persons making in-
vestments with respect to the development of petroleum re-
sources of Libya, or exporting, transferring, or releasing of
certain items to Libya, nationals of Libya, or entities
owned or controlled by Libya, in the same manner as those
sanctions apply under this Act to persons making invest-
ments with respect to the development of petroleum re-
sources of Iran, or exporting, transferring, or releasing of
certain items to Iran, nationals of Iran, or entities owned
or controlled by Iran.
(b) APPLICATION OF SPECIFIC PROVISIONS.—In ap-
plying the provisions of this Act with respect to Libya
under subsection (a), each reference to ‘‘Iran’’ shall be
deemed to be a reference to ‘‘Libya’’.
SEC. 12. DETERMINATIONS NOT REVIEWABLE.
A determination to impose sanctions under this Act
shall not be reviewable in any court.
SEC. 13. 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 criminal laws
of the United States or of any State or that
would be a criminal violation if committed with-
in 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) AFFILIATE.—For purposes of section 4(b), a
person is an ‘‘affiliate’’ of another person if more
than 50 percent of the outstanding capital stock of or
other beneficial interest in both persons is owned, di-
rectly or indirectly, by a third person or both persons
are otherwise controlled by a third person.
(3) 
APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional commit-
tees’’ means the Committee on Banking, Housing, and
Urban Affairs and the Committee on Foreign Rela-
tions of the Senate and the Committee on Inter-
national Relations of the House of Representatives.
(4) COMPONENT
PART.—The term ‘‘component
part’’ has the meaning given that term in section
11A(e)(1) of the Export Administration Act of 1979
(50 U.S.C. App. 2410a(e)(1)).
(5) DEVELOP
AND
DEVELOPMENT.—To ‘‘de-
velop’’, or the ‘‘development’’ of, petroleum resources
means the exploration for, or the extraction, refining,
or transportation by pipeline of, petroleum resources.
(6) FINANCIAL INSTITUTION.—The term ‘‘finan-
cial institution’’ includes—
(A) a depository institution (as defined in
section 3(c)(1) of the Federal Deposit Insurance
Act), including a branch or agency of a foreign
bank (as defined in section 1(b)(7) of the Inter-
national Banking Act of 1978);
(B) a credit union;
(C) a securities firm, including a broker or
dealer;
(D) an insurance company, including an
agency or underwriter;
(E) any other company that provides finan-
cial services; and
(F) any subsidiary of an entity described in
any of subparagraphs (A) through (E).
(7) FINISHED
PRODUCT.—The term ‘‘finished
product’’ has the meaning given that term in section
11A(e)(2) of the Export Administration Act of 1979
(50 U.S.C. App. 2410a(e)(2)).
(8) FOREIGN PERSON.—The term ‘‘foreign per-
son’’ means—
(A) an individual who is not a United
States person or an alien lawfully admitted for
permanent residence into the United States; or
(B) a corporation, partnership, or other
nongovernment entity which is not a United
States person.
(9) 
GOODS
AND
TECHNOLOGY.—The 
terms
‘‘goods’’ and ‘‘technology’’ have the meanings given
those terms in section 16 of the Export Administra-
tion Act of 1979 (50 U.S.C. app. 2415).
(10) 
INVESTMENT.—The 
term 
‘‘investment’’
means—
(A) the entry into a contract that includes
responsibility for the development of petroleum
resources located in Iran or Libya (as the case
may be), or the entry into a contract providing
for the general supervision and guarantee of an-
ther person’s performance of such a contract;
(B) the purchase of a share of ownership in
that development;
(C) the entry into a contract providing for
the participation in royalties, earnings, or prof-
its in that development, without regard to the
form of the participation; or
(D) the entry into or performance of—
(i) a contract for the financing of the
development of petroleum resources located
in Iran or Libya (as the case may be); or
(ii) a guaranty of another person’s
performance under such a contract.
(11) IRAN.—The term ‘‘Iran’’ includes any agen-
cy or instrumentality of Iran.
(12) IRANIAN DIPLOMATS AND REPRESENTATIVES
OF OTHER GOVERNMENT AND MILITARY OR QUASI-
GOVERNMENTAL
INSTITUTIONS
OF
IRAN.—The term
‘‘Iranian diplomats and representatives of other gov-
ernment and military or quasi-governmental institu-
tions of Iran’’ includes employees, representatives, or
affiliates of Iran’s—
(A) Foreign Ministry;
(B) Ministry of Intelligence and Security;
(C) Revolutionary Guard Corps;
(D) Crusade for Reconstruction;
(E) Qods (Jerusalem) Forces;
(F) Interior Ministry;
(G) Foundation for the Oppressed and Dis-
abled;
(H) Prophet’s Foundation;
(I) June 5th Foundation;
(J) Martyr’s Foundation;
(K) Islamic Propagation Organization; and
(L) Ministry of Islamic Guidance.
(13) LIBYA.—The term ‘‘Libya’’ includes any
agency or instrumentality of Libya.
(14) NUCLEAR
EXPLOSIVE
DEVICE.—The term
‘‘nuclear explosive device’’ means any device, whether
assembled or disassembled, that is designed to produce
an instantaneous release of an amount of nuclear en-
ergy from special nuclear material (as defined in sec-
tion 11aa. of the Atomic Energy Act of 1954) that is
greater than the amount of energy that would be re-
leased from the detonation of one pound of trinitro-
toluene (TNT).
(15) PARENT.—For purposes of section 4(b), a
person is a ‘‘parent’’ of another person if that person
owns, directly or indirectly, more than 50 percent of
the outstanding capital stock of or other beneficial in-
terest in that other person, or otherwise controls that
other person.
(16) PERSON.—The term ‘‘person’’ means—
(A) a natural person;
(B) a corporation, business association,
partnership, society, trust, any other nongovern-
mental entity, organization, or group, and any
governmental entity operating as a business en-
terprise; and
(C) any successor to any entity described in
subparagraph (B).
(17) PETROLEUM RESOURCES.—The term ‘‘pe-
troleum resources’’ includes petroleum and natural
gas resources.
(18) SUBSIDIARY.—(A) For purposes of section
4(b), and subject to subparagraph (B), a person is a
‘‘subsidiary’’ of another person if that other person
owns, directly or indirectly, more than 50 percent of
the outstanding capital stock of or other beneficial in-
terest in that person, or otherwise controls that per-
son.
(B) A person is a ‘‘wholly owned’’ subsidiary of
another person if that other person owns all of the
outstanding capital stock of or other beneficial inter-
ests in that person.
(19) UNITED
STATES
OR
STATE.—The term
‘‘United States’’ or ‘‘State’’ means the several States,
the District of Columbia, the Commonwealth of Puer-
to 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.
(20) UNITED STATES PERSON.—The term ‘‘Unit-
ed States person’’ means—
(A) a natural person who is a citizen of the
United States or who owes permanent allegiance
to the United States; and
(B) a corporation or other legal entity
which is organized under the laws of the United
States, any State or territory thereof, or the Dis-
trict of Columbia, if natural persons described in
subparagraph (A) own, directly or indirectly,
more than 50 percent of the outstanding capital
stock or other beneficial interest in such legal
entity.
Amend the title so as to read: ‘‘A bill to impose
sanctions on persons exporting certain items that would
enhance Iran’s ability to develop its petroleum resources
and on persons making certain investments directly con-
tributing to the enhancement of Iran’s ability to develop
its petroleum resources, and for other purposes.’’.
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 find-
ings:
(1) The efforts of the Government of
Iran to acquire weapons of mass destruc-
tion and the means to deliver them and
its support of acts of international terror-
ism endanger the national security and
foreign policy interests of the United
States and those countries with which
the United States shares common strate-
gic and foreign policy objectives.
(2) The objective of preventing the
proliferation of weapons of mass destruc-
tion and acts of international terrorism
through existing multilateral and bilat-
eral initiatives requires additional efforts
to deny Iran the financial means to sus-
tain its nuclear, chemical, biological, and
missile weapons programs.
(3) The Government of Iran uses its
diplomatic facilities and quasi-govern-
mental institutions outside of Iran to pro-
mote 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 inter-
national terrorism, and its efforts to ac-
quire weapons of mass destruction con-
stitute 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 strategic
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 sup-
port acts of international terrorism and to
fund the development and acquisition of
weapons of mass destruction and the means
to deliver them by limiting the development
of Iran’s ability to 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, including ending all support
for acts of international terrorism and efforts
to develop or acquire weapons of mass de-
struction.
SEC. 4. MULTILATERAL REGIME.
(a) MULTILATERAL NEGOTIATIONS.—In order
to further the objectives of section 3, the Con-
gress urges the President to commence imme-
diately diplomatic efforts, both in appropriate
international fora such as the United Nations,
and bilaterally with allies of the United
States, to establish a multilateral sanctions
regime against Iran, including provisions lim-
iting the development of petroleum resources,
that will inhibit Iran’s efforts to carry out ac-
tivities 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 periodi-
cally 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 objec-
tives 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 pro-
vided 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 section 5(a) with respect to na-
tionals of a country if—
(1) that country has agreed to under-
take substantial measures, including eco-
nomic sanctions, that will inhibit Iran’s
efforts to carry out activities described in
section 2 and information required by
subsection (b)(1) has been included in a
report submitted under subsection (b);
and
(2) the President, at least 30 days be-
fore the waiver takes effect, notifies the
appropriate congressional committees of
his intention to exercise the waiver.
(d) ENHANCED SANCTION.—
(1) SANCTION.—With respect to nation-
als 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), sec-
tion 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 Presi-
dent shall report to the appropriate con-
gressional committees any country with
respect to which paragraph (1) applies.
(e) INTERIM
REPORT
ON
MULTILATERAL
SANCTIONS; MONITORING.—The President, not
later than 90 days after the date of the enact-
ment of this Act, shall report to the appro-
priate congressional committees on—
(1) whether the member states of the
European Union, the Republic of Korea,
Australia, Israel, or Japan have legisla-
tive or administrative standards provid-
ing for the imposition of trade sanctions
on persons or their affiliates doing busi-
ness or having investments in Iran or
Libya;
(2) the extent and duration of each in-
stance of the application of such sanc-
tions; and
(3) the disposition of any decision
with respect to such sanctions by the
World Trade Organization or its prede-
cessor organization.
SEC. 5. IMPOSITION OF SANCTIONS.
(a) SANCTIONS WITH RESPECT TO IRAN.—Ex-
cept as provided in subsection (f), the Presi-
dent shall impose 2 or more of the sanctions
described in paragraphs (1) through (6) of sec-
tion 6 if the President determines that a per-
son 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 aggregate
equals or exceeds $40,000,000 in any 12-month
period), that directly and significantly con-
tributed to the enhancement of Iran’s ability
to develop petroleum resources of Iran.
(b) SANCTIONS WITH RESPECT TO LIBYA.—
(1) TRIGGER
OF
MANDATORY
SANC-
TIONS.—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 Presi-
dent determines that a person has, with
actual knowledge, on or after the date of
the enactment of this Act, exported,
transferred, or otherwise provided to
Libya any goods, services, technology, or
other items the provision of which is pro-
hibited under paragraph 4(b) or 5 of Res-
olution 748 of the Security Council of the
United Nations, adopted March 31, 1992,
or under paragraph 5 or 6 of Resolution
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 nu-
clear weapons or destabilizing num-
bers and types of advanced conven-
tional weapons or enhanced Libya’s
military or paramilitary capabilities;
(B) contributed to Libya’s ability
to develop its petroleum resources; or
(C) contributed to Libya’s ability
to maintain its aviation capabilities.
(2) TRIGGER
OF
DISCRETIONARY
SANC-
TIONS.—Except as provided in subsection
(f), the President may impose 1 or more
of the sanctions described in paragraphs
(1) through (6) of section 6 if the Presi-
dent determines that a person has, with
actual knowledge, on or after the date of
the enactment of this Act, made an in-
vestment 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 signifi-
cantly contributed to the enhancement of
Libya’s ability to develop its petroleum
resources.
(c) PERSONS AGAINST WHICH THE SANCTIONS
ARE TO BE IMPOSED.—The sanctions described
in subsections (a) and (b) shall be imposed
on—
(1) any person the President deter-
mines has carried out the activities de-
scribed in subsection (a) or (b); and
(2) any person the President deter-
mines—
(A) is a successor entity to the
person referred to in paragraph (1);
(B) is a parent or subsidiary of
the person referred to in paragraph
(1) if that parent or subsidiary, with
actual knowledge, engaged in the ac-
tivities referred to in paragraph (1);
or
(C) is an affiliate of the person re-
ferred to in paragraph (1) if that affil-
iate, with actual knowledge, engaged
in the activities referred to in para-
graph (1) and if that affiliate is con-
trolled in fact by the person referred
to in paragraph (1).
For purposes of this Act, any person or entity
described in this subsection shall be referred
to as a ‘‘sanctioned person’’.
(d) PUBLICATION
IN FEDERAL REGISTER.—
The President shall cause to be published in
the Federal Register a current list of persons
and entities on whom sanctions have been im-
posed under this Act. The removal of persons
or entities from, and the addition of persons
and entities to, the list, shall also be so pub-
lished.
(e) PUBLICATION OF PROJECTS.—The Presi-
dent shall cause to be published in the Fed-
eral Register a list of all significant projects
which have been publicly tendered in the oil
and gas sector in Iran.
(f) EXCEPTIONS.—The President shall not
be required to apply or maintain the sanc-
tions under subsection (a) or (b)—
(1) in the case of procurement of de-
fense articles or defense services—
(A) under existing contracts or
subcontracts, including the exercise
of options for production quantities
to satisfy requirements essential to
the national security of the United
States;
(B) if the President determines in
writing that the person to which the
sanctions would otherwise be applied
is a sole source supplier of the de-
fense articles or services, that the de-
fense articles or services are essen-
tial, and that alternative sources are
not readily or reasonably available;
or
(C) if the President determines in
writing that such articles or services
are essential to the national security
under defense coproduction agree-
ments;
(2) in the case of procurement, to eli-
gible products, as defined in section
308(4) of the Trade Agreements Act of
1979 (19 U.S.C. 2518(4)), of any foreign
country or instrumentality designated
under section 301(b)(1) of that Act (19
U.S.C. 2511(b)(1));
(3) to products, technology, or serv-
ices provided under contracts entered
into before the date on which the Presi-
dent publishes in the Federal Register
the name of the person on whom the
sanctions are to be imposed;
(4) to—
(A) spare parts which are essen-
tial to United States products or pro-
duction;
(B) component parts, but not fin-
ished products, essential to United
States products or production; or
(C) routine servicing and mainte-
nance of products, to the extent that
alternative sources are not readily or
reasonably available;
(5) to information and technology es-
sential to United States products or pro-
duction; or
(6) to medicines, medical supplies, or
other humanitarian items.
SEC. 6. DESCRIPTION OF SANCTIONS.
The sanctions to be imposed on a sanc-
tioned person under section 5 are as follows:
(1) EXPORT-IMPORT
BANK
ASSISTANCE
FOR
EXPORTS
TO
SANCTIONED
PERSONS.—
The President may direct the Export-Im-
port Bank of the United States not to give
approval to the issuance of any guaran-
tee, insurance, extension of credit, or par-
ticipation in the extension of credit in
connection with the export of any goods
or services to any sanctioned person.
(2) EXPORT SANCTION.—The President
may order the United States Government
not to issue any specific license and not
to grant any other specific permission or
authority to export any goods or tech-
nology to a sanctioned person under—
(i) the Export Administration Act
of 1979;
(ii) the Arms Export Control Act;
(iii) the Atomic Energy Act of
1954; or
(iv) any other statute that re-
quires the prior review and approval
of the United States Government as a
condition for the export or re-export
of goods or services.
(3) LOANS FROM UNITED STATES FINAN-
CIAL
INSTITUTIONS.—The 
United 
States
Government may prohibit any United
States financial institution from making
loans or providing credits to any sanc-
tioned 
person 
totaling 
more 
than
$10,000,000 in any 12-month period unless
such person is engaged in activities to re-
lieve human suffering and the loans or
credits are provided for such activities.
(4) PROHIBITIONS
ON
FINANCIAL
INSTI-
TUTIONS.—The following prohibitions may
be imposed against a sanctioned person
that is a financial institution:
(A) PROHIBITION
ON
DESIGNATION
AS
PRIMARY
DEALER.—Neither 
the
Board of Governors of the Federal
Reserve System nor the Federal Re-
serve Bank of New York may des-
ignate, or permit the continuation of
any prior designation of, such finan-
cial institution as a primary dealer in
United States Government debt in-
struments.
(B) PROHIBITION ON SERVICE AS A
REPOSITORY
OF
GOVERNMENT
FUNDS.—
Such financial institution may not
serve as agent of the United States
Government or serve as repository
for United States Government funds.
The imposition of either sanction under
subparagraph (A) or (B) shall be treated
as 1 sanction for purposes of section 5,
and the imposition of both such sanctions
shall be treated as 2 sanctions for pur-
poses of section 5.
(5) 
PROCUREMENT
SANCTION.—The
United States Government may not pro-
cure, or enter into any contract for the
procurement of, any goods or services
from a sanctioned person.
(6) ADDITIONAL SANCTIONS.—The Presi-
dent may impose sanctions, as appro-
priate, to restrict imports with respect to
a sanctioned person, in accordance with
the International Emergency Economic
Powers Act (50 U.S.C. 1701 and follow-
ing).
SEC. 7. ADVISORY OPINIONS.
The Secretary of State may, upon the re-
quest of any person, issue an advisory opinion
to that person as to whether a proposed activ-
ity by that person would subject that person
to sanctions under this Act. Any person who
relies in good faith on such an advisory opin-
ion which states that the proposed activity
would not subject a person to such sanctions,
and any person who thereafter engages in
such activity, will not be made subject to such
sanctions on account of such activity.
SEC. 8. TERMINATION OF SANCTIONS.
(a) IRAN.—The requirement under section
5(a) to impose sanctions shall no longer have
force or effect with respect to Iran if the
President determines and certifies to the ap-
propriate 
congressional 
committees 
that
Iran—
(1) has ceased its efforts to design, de-
velop, manufacture, or acquire—
(A) a nuclear explosive device or
related materials and technology;
(B) chemical and biological weap-
ons; and
(C) ballistic missiles and ballistic
missile launch technology; and
(2) has been removed from the list of
countries the governments of which have
been determined, for purposes of section
6(j) of the Export Administration Act of
1979, to have repeatedly provided sup-
port for acts of international terrorism.
(b) LIBYA.—The requirement under sec-
tion 5(b) to impose sanctions shall no longer
have force or effect with respect to Libya if
the President determines and certifies to the
appropriate congressional committees that
Libya has fulfilled the requirements of United
Nations Security Council Resolution 731,
adopted January 21, 1992, United Nations Se-
curity Council Resolution 748, adopted March
31, 1992, and United Nations Security Council
Resolution 883, adopted November 11, 1993.
SEC. 9. DURATION OF SANCTIONS; PRESIDENTIAL WAIVER.
(a) DELAY OF SANCTIONS.—
(1) CONSULTATIONS.—If the President
makes a determination described in sec-
tion 5(a) or 5(b) with respect to a foreign
person, the Congress urges the President
to 
initiate 
consultations 
immediately
with the government with primary juris-
diction over that foreign person with re-
spect to the imposition of sanctions
under this Act.
(2) ACTIONS BY GOVERNMENT OF JURIS-
DICTION.—In order to pursue consulta-
tions under paragraph (1) with the gov-
ernment concerned, the President may
delay imposition of sanctions under this
Act for up to 90 days. Following such con-
sultations, the President shall imme-
diately impose sanctions unless the Presi-
dent determines and certifies to the Con-
gress that the government has taken spe-
cific and effective actions, including, as
appropriate, the imposition of appro-
priate penalties, to terminate the involve-
ment of the foreign person in the activi-
ties that resulted in the determination by
the President under section 5(a) or 5(b)
concerning such person.
(3) ADDITIONAL DELAY IN IMPOSITION OF
SANCTIONS.—The President may delay the
imposition of sanctions for up to an addi-
tional 90 days if the President determines
and certifies to the Congress that the
government with primary jurisdiction
over the person concerned is in the proc-
ess of taking the actions described in
paragraph (2).
(4) REPORT
TO
CONGRESS.—Not later
than 90 days after making a determina-
tion under section 5(a) or 5(b), the Presi-
dent shall submit to the appropriate con-
gressional committees a report on the
status of consultations with the appro-
priate foreign government under this
subsection, and the basis for any deter-
mination under paragraph (3).
(b) DURATION OF SANCTIONS.—A sanction
imposed under section 5 shall remain in ef-
fect—
(1) for a period of not less than 2
years from the date on which it is im-
posed; or
(2) until such time as the President
determines and certifies to the Congress
that the person whose activities were the
basis for imposing the sanction is no
longer engaging in such activities and
that the President has received reliable
assurances that such person will not
knowingly engage in such activities in
the future, except that such sanction
shall remain in effect for a period of at
least 1 year.
(c) PRESIDENTIAL WAIVER.—
(1) AUTHORITY.—The President may
waive the requirement in section 5 to im-
pose a sanction or sanctions on a person
described in section 5(c), and may waive
the continued imposition of a sanction or
sanctions under subsection (b) of this sec-
tion, 30 days or more after the President
determines and so reports to the appro-
priate congressional committees that it is
important to the national interest of the
United States to exercise such waiver au-
thority.
(2) CONTENTS OF REPORT.—Any report
under paragraph (1) shall provide a spe-
cific and detailed rationale for the deter-
mination under paragraph (1), includ-
ing—
(A) a description of the conduct
that resulted in the determination
under section 5(a) or (b), as the case
may be;
(B) in the case of a foreign per-
son, an explanation of the efforts to
secure the cooperation of the govern-
ment with primary jurisdiction over
the sanctioned person to terminate
or, as appropriate, penalize the ac-
tivities that resulted in the deter-
mination under section 5(a) or (b), as
the case may be;
(C) an estimate as to the signifi-
cance—
(i) of the provision of the
items described in section 5(a) to
Iran’s ability to develop its petro-
leum resources, or
(ii) of the provision of the
items described in section 5(b)(1)
to the abilities of Libya described
in subparagraph (A), (B), or (C) of
section 5(b)(1), or of the invest-
ment described in section 5(b)(2)
on Libya’s ability to develop its
petroleum resources,
as the case may be; and
(D) a statement as to the response
of the United States in the event that
the person concerned engages in
other activities that would be subject
to section 5(a) or (b).
(3) EFFECT OF REPORT ON WAIVER.—If
the President makes a report under para-
graph (1) with respect to a waiver of
sanctions on a person described in sec-
tion 5(c), sanctions need not be imposed
under section 5(a) or (b) on that person
during the 30-day period referred to in
paragraph (1).
SEC. 10. REPORTS REQUIRED.
(a) REPORT ON CERTAIN INTERNATIONAL INI-
TIATIVES.—Not later than 6 months after the
date of the enactment of this Act, and every
6 months thereafter, the President shall trans-
mit a report to the appropriate congressional
committees describing—
(1) the efforts of the President to
mount a multilateral campaign to per-
suade all countries to pressure Iran to
cease its nuclear, chemical, biological,
and missile weapons programs and its
support of acts of international terror-
ism;
(2) the efforts of the President to per-
suade other governments to ask Iran to
reduce the presence of Iranian diplomats
and representatives of other government
and military or quasi-governmental insti-
tutions of Iran and to withdraw any such
diplomats or representatives who partici-
pated in the takeover of the United
States embassy in Tehran on November 4,
1979, or the subsequent holding of United
States hostages for 444 days;
(3) the extent to which the Inter-
national Atomic Energy Agency has es-
tablished regular inspections of all nu-
clear facilities in Iran, including those
presently under construction; and
(4) Iran’s use of Iranian diplomats
and representatives of other government
and military or quasi-governmental insti-
tutions of Iran to promote acts of inter-
national terrorism or to develop or sus-
tain Iran’s nuclear, chemical, biological,
and missile weapons programs.
(b) OTHER REPORTS.—The President shall
ensure the continued transmittal to the Con-
gress of reports describing—
(1) the nuclear and other military ca-
pabilities of Iran, as required by section
601(a) of the Nuclear Non-Proliferation
Act of 1978 and section 1607 of the Na-
tional Defense Authorization Act for Fis-
cal Year 1993; and
(2) the support provided by Iran for
acts of international terrorism, as part of
the Department of State’s annual report
on international terrorism.
SEC. 11. DETERMINATIONS NOT REVIEWABLE.
A determination to impose sanctions
under this Act shall not be reviewable in any
court.
SEC. 12. EXCLUSION OF CERTAIN ACTIVITIES.
Nothing in this Act shall apply to any ac-
tivities subject to the reporting requirements
of title V of the National Security Act of 1947.
SEC. 13. EFFECTIVE DATE; SUNSET.
(a) EFFECTIVE DATE.—This Act shall take
effect on the date of the enactment of this Act.
(b) SUNSET.—This Act shall cease to be ef-
fective on the date that is 5 years after the
date of the enactment of this Act.
SEC. 14. DEFINITIONS.
As used in this Act:
(1) ACT
OF
INTERNATIONAL
TERROR-
ISM.—The term ‘‘act of international ter-
rorism’’ means an act—
(A) which is violent or dangerous
to human life and that is a violation
of the criminal laws of the United
States or of any State or that would
be a criminal violation if committed
within the jurisdiction of the United
States or any State; and
(B) 
which 
appears 
to 
be 
in-
tended—
(i) to intimidate or coerce a
civilian population;
(ii) to influence the policy of a
government by intimidation or
coercion; or
(iii) to affect the conduct of a
government by assassination or
kidnapping.
(2) APPROPRIATE CONGRESSIONAL COM-
MITTEES.—The term ‘‘appropriate congres-
sional committees’’ means the Committee
on Finance, the Committee on Banking,
Housing, and Urban Affairs, and the Com-
mittee on Foreign Relations of the Senate
and the Committee on Ways and Means,
the Committee on Banking and Financial
Services, and the Committee on Inter-