SECTION 1. 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 to 
read as follows: 
‘‘(B)(i) a corporation, business association, 
partnership, society, trust, financial institution, 
insurer, underwriter, guarantor, and any other 
business organization; 
‘‘(ii) any foreign subsidiary of any entity 
described in clause (i); and 
‘‘(iii) any governmental entity operating as 
a business enterprise, such as an export credit 
agency; and’’. 
(b) PETROLEUM RESOURCES.—Section 14(14) of the 
Iran Sanctions Act of 1996 (50 U.S.C. 1701 note) is 
amended by inserting after ‘‘petroleum’’ the second place 
it appears the following: ‘‘, petroleum refining capacity, 
liquefied natural gas,’’. 
(c) CONSTRUCTION.—The amendments made by this 
section shall not be construed to require the imposition 
of any measure under section 5 of the Iran Sanctions Act 
of 1996 against any natural person or other entity that 
is not specifically described in section 14(13) of that Act, 
as amended by this section.
SEC. 2. APPLICATION TO SUBSIDIARIES. 
(a) IN GENERAL.—Except as provided in subsection 
(b), in any case in which an entity engages in an act out-
side the United States which, if committed in the United 
States or by a United States person, would violate Execu-
tive Order No. 12959 of May 6, 1995, Executive Order 
No. 13059 of August 19, 1997, or any other prohibition 
on transactions with respect to Iran that is imposed under 
the International Emergency Economic Powers Act (50 
U.S.C. 1701 et seq.) and if that entity was created or 
availed of for the purpose of engaging in such an act, the 
parent company of that entity shall be subject to the pen-
alties for such violation to the same extent as if the parent 
company had engaged in that act. 
(b) EXCEPTION.—Subsection (a) shall not apply to 
any act carried out under a contract or other obligation 
of any entity if— 
(1) the contract or obligation existed on May 
22, 2007, unless such contract or obligation is ex-
tended in time in any manner or expanded to cover 
additional activities beyond the terms of the contract 
or other obligation as it existed on May 22, 2007; 
or 
(2) the parent company acquired that entity not 
knowing, and not having reason to know, that such 
contract or other obligation existed, unless such con-
tract or other obligation is extended in time in any 
manner or expanded to cover additional activities be-
yond the terms of such contract or other obligation 
as it existed at the time of such acquisition. 
(c) CONSTRUCTION.—Nothing in this section shall be 
construed as prohibiting the issuance of regulations, or-
ders, directives, or licenses under the Executive orders de-
scribed in subsection (a) or as being inconsistent with the 
authorities under the International Emergency Economic 
Powers Act. 
(d) DEFINITIONS.—In this section— 
(1) the term ‘‘entity’’ means a partnership, as-
sociation, trust, joint venture, corporation, or other 
organization; 
(2) an entity is a ‘‘parent company’’ of another 
entity if it controls, directly or indirectly, that other 
entity and is a United States person; and 
(3) the term ‘‘United States person’’ means any 
United States citizen, any alien lawfully admitted for 
permanent residence to the United States, any entity
organized under the laws of the United States, or 
any person in the United States. 
Passed the House of Representatives July 31, 2007. 
Attest: 
Clerk.
110TH CONGRESS 
1ST SESSION 
H. R. 957 
AN ACT 
To amend the Iran Sanctions Act of 1996 to ex-
pand and clarify the entities against which sanc-
tions may be imposed.