A bill to make amendments to the Iran and Syria Nonproliferation Act.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Iran and Syria Nonproliferation 
Enforcement Act of 2006''.

SEC. 2. SANCTIONS APPLICABLE UNDER THE IRAN NONPROLIFERATION ACT OF 
              2000.

    (a) Application of Certain Measures.--Section 3 of the Iran and 
Syria Nonproliferation Act (50 U.S.C. 1701 note) is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) Application of Measures.--Subject to sections 4 and 5, the 
President shall apply, for a period of not less than 2 years, the 
measures described in subsection (b) with respect to--
            ``(1) each foreign person identified in a report submitted 
        pursuant to section 2(a);
            ``(2) all successors, subunits, and subsidiaries of each 
        such foreign person; and
            ``(3) any entity (if operating as a business enterprise) 
        that owns more than 50 percent of, or controls in fact, any 
        such foreign person and any successors, subunits, and 
        subsidiaries of such entity.'';
            (2) in subsection (b)--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) Executive order no. 12938 prohibitions.--The measures 
        set forth in subsections (b), (c), and (d) of section 4 of 
        Executive Order 12938.'';
                    (B) in paragraph (2)--
                            (i) by striking ``to that foreign person''; 
                        and
                            (ii) by striking ``to that person'';
                    (C) in paragraph (3), by striking ``to that 
                person''; and
                    (D) by adding at the end the following new 
                paragraphs:
            ``(4) Investment prohibition.--Prohibition of any new 
        investment by a United States person in property, including 
        entities, owned or controlled by--
                    ``(A) that foreign person;
                    ``(B) any entity (if operating as a business 
                enterprise) that owns more than 50 percent of, or 
                controls in fact, such foreign person; or
                    ``(C) any successor, subunit, or subsidiary of such 
                entity.
            ``(5) Financing prohibition.--Prohibition of any approval, 
        financing, or guarantee by a United States person, wherever 
        located, of a transaction by--
                    ``(A) that foreign person;
                    ``(B) any entity (if operating as a business 
                enterprise) that owns more than 50 percent of, or 
                controls in fact, such foreign person; or
                    ``(C) any successor, subunit, or subsidiary of such 
                entity.
            ``(6) Financial assistance prohibition.--Denial by the 
        United States Government of any credit, credit guarantees, 
        grants, or other financial assistance by any department, 
        agency, or instrumentality of the United States Government to--
                    ``(A) that foreign person;
                    ``(B) any entity (if operating as a business 
                enterprise) that owns more than 50 percent of, or 
                controls in fact, such foreign person; and
                    ``(C) any successor, subunit, or subsidiary of such 
                entity.''; and
            (3) by amending subsection (d) to read as follows:
    ``(d) Publication in Federal Register.--
            ``(1) In general.--The application of measures pursuant to 
        subsection (a) shall be announced by notice published in the 
        Federal Register.
            ``(2) Content.--Each notice published pursuant to paragraph 
        (1) shall include the name and address (where known) of each 
        person or entity to whom measures have been applied pursuant to 
        subsection (a).''.
    (b) National Security Waiver.--Section 4 of such Act is amended to 
read as follows:

``SEC. 4. WAIVER ON BASIS OF NATIONAL SECURITY.

    ``(a) In General.--The President may waive the imposition of any 
sanction that would otherwise be required under section 3 on any person 
or entity 15 days after the President determines and reports to the 
Committee on International Relations of the House of Representatives 
and the Committee on Foreign Relations of the Senate that such waiver 
is essential to the national security of the United States.
    ``(b) Written Justification.--The determination and report of the 
President under subsection (a) shall include a written justification--
            ``(1) describing in detail the circumstances and rationale 
        supporting the President's conclusion that the waiver is 
        essential to the national security of the United States; and
            ``(2) identifying--
                    ``(A) the name and address (where known) of the 
                person or entity to whom the waiver is applied pursuant 
                to subsection (a);
                    ``(B) the specific goods, services, or 
                technologies, the transfer of which would have required 
                the imposition of measures pursuant to section 3 if the 
                President had not invoked the waiver authority under 
                subsection (a); and
                    ``(C) the name and address (where known) of the 
                recipient of such transfer.
    ``(c) Form.--The written justification shall be submitted in 
unclassified form, but may contain a classified annex.''.

Summary: Iran and Syria Nonproliferation Enforcement Act of 2006 - Amends the Iran and Syria Nonproliferation Act respecting the imposition of sanctions under such Act to: (1) apply sanctions for a minimum two-year period; (2) apply sanctions to an identified foreign person, a successor or subsidiary, and an entity controlling more than 50% of such foreign person, successor, or subsidiary (currently, such provision applies only to a foreign person); (3) include among applicable sanctions under Executive Order 12938 certain exemptions for military, medical, or humanitarian purposes; (4) establish investment, financing, and financial assistance prohibitions; and (5) require publication of sanctions applicable to such expanded entities in the Federal Register.

Authorizes the President to waive, with congressional notification, the imposition of any sanction for national security purposes.