Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2008

Bill: 110-s-3445
Sponsor: Sen. Dodd, Christopher J. [D-CT]
Introduced: 2008-08-01 in the Senate
Policy area: International Affairs
Subjects: Administrative procedure
Alien property
American investments
Armed Forces and National Security
Arms sales
Authorization
Biological warfare
Chemical warfare
Commerce
Congress
Congress and foreign policy
Congressional oversight
Congressional reporting requirements
Corporate accountability
Crime and Law Enforcement
Department of the Treasury
Economics and Public Finance
Energy
Explosives
Export controls
Export finance
Finance and Financial Sector
Foreign Trade and International Finance
Foreign banks and banking
Foreign investments
Foreign loans
Gas industry
Government Operations and Politics
Government procurement
Import restrictions
Independent regulatory commissions
Investments
Iran
Labor and Employment
Law
Liquefied natural gas
Middle East and North Africa
Nuclear exports
Nuclear industry
Nuclear nonproliferation
Pension funds
Petroleum industry
Pipelines
President and foreign policy
Sanctions (International law)
Science, Technology, Communications
Securities and Exchange Commission
Securities regulation
State-sponsored terrorism
Subsidiary corporations
Tankers
Tax-deferred compensation plans
Taxation
Technology transfer
Terrorism
Transportation and Public Works
Weapons of mass destruction

Summary:
action_date: 2008-08-01
text: 
Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2008 - Subjects Iran to specified economic sanctions, including import and export prohibitions.
 
Subjects a U.S. person to penalties for violations of certain sanctions committed by a subsidiary established by such person outside of the United States that would be subject to prohibitions if committed inside the United States or by a U.S. person. 
 
Authorizes appropriations for the Department of the Treasury's Office of Terrorism and Financial Intelligence and for the Financial Crimes Enforcement Network. 
 
Urges the President to impose sanctions on the Central Bank of Iran and any other Iranian banks engaged in the support of terrorist groups.
 
Authorizes a state or local government to adopt and enforce measures to divest its assets from, or prohibit investment of assets in, persons that have direct or indirect investments in Iran's energy sector of more than $20 million.
 
Amends the Investment Company Act of 1940 to shield any registered investment company from civil, criminal, or administrative action based upon its divesting from, or avoiding investing in, securities issued by companies with such investments in the energy sector of Iran.
 
Requires the Director of National Intelligence to report to the Secretary of Commerce, the Secretary of State, the Secretary of the Treasury, and appropriate congressional committees on all countries of concern with respect to the transshipment, reexportation, or diversion of certain export controlled items to Iran. 
 
Requires the Secretary of Commerce to designate a country as a Destination of Possible Diversion Concern if appropriate to carry out activities to strengthen that country's export control systems. Requires the United States to initiate such activities on a government-to-government basis.
 
Defines a Destination of Diversion Concern as any country whose government is directly involved in the transshipment, reexportation, or diversion of U.S.-originating controlled items to unverifiable end users or to Iran, or that has failed to adequately strengthen its export control systems. 
 
Requires a license to export to a country designated a Destination of Diversion Concern controlled items that could contribute to Iran's obtaining nuclear, biological, or chemical weapons, or its support for acts of international terrorism.
 
Requires the Director to report to the appropriate congressional committees on: (1) any country that may be transshipping, reexporting, or diverting controlled items to a country other than Iran if such other country is seeking to obtain nuclear, biological, or chemical weapons, defense technologies, components for improvised explosive devices (IEDs), or other defense items, or provides support for acts of international terrorism; and (2) the feasibility and advisability of including such countries in the system for designating countries as Destinations of Possible Diversion Concern and Destinations of Diversion Concern.

action_date: 2008-08-01
text: 

(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)

 
Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2008 - 
Title I: Sanctions - 
(Sec. 102) Amends the Iran Sanctions Act of 1996 (formerly the Iran and Libya Sanctions Act of 1996) to expand the definitions of: (1) &quot;person&quot; to include financial institutions, insurers, underwriters, guarantors, other business organizations, including foreign subsidiaries, and export credit agencies; and (2) &quot;petroleum resources&quot; to include petroleum by-products, oil or liquefied natural gas or liquefied natural gas tankers, and products used to construct or maintain pipelines used to transport oil or liquefied natural gas. 
 
(Sec. 103) Subjects Iran to certain economic sanctions.
 
Prohibits direct or indirect: (1) importation of Iranian articles into the United States, except information and informational materials; and (2) exportation to Iran of U.S. articles, except agricultural commodities, medicine and medical devices, humanitarian assistance articles, information materials, and, subject to specified conditions, goods, services, or technologies necessary to ensure the safe operation of commercial U.S. passenger aircraft.
 
Directs the President to: (1) freeze the assets of Iranian diplomats and representatives of other Iranian government and military or quasi-governmental institutions who are subject to sanctions under the International Emergency Economic Powers Act or other provision of law; (2) freeze the assets of family members or associates of sanctioned Iranian persons who receive transfers of assets or property from such sanctioned persons on or after January 1, 2008; and (3) report the names of sanctioned persons to the appropriate congressional committees.
 
Authorizes the President to waive such sanctions in the U.S. national interest.
 
(Sec. 104) Subjects a U.S. person (parent company) to penalties for acts committed by a subsidiary established by such person outside of the United States to circumvent certain sanctions, if such acts would be subject to prohibitions if committed inside the United States or by a U.S. person.
 
Authorizes the President to waive such sanctions in the U.S. national interest.
 
(Sec. 105) Authorizes FY2009-FY2011 appropriations for the Department of the Treasury's Office of Terrorism and Financial Intelligence and for the Financial Crimes Enforcement Network.
 
(Sec. 106) Requires the President to report to the appropriate congressional committees on foreign investments of $20 million or more in Iran's energy sector.
 
(Sec. 107) Urges the President to impose sanctions on the Central Bank of Iran and any other Iranian banks engaged in proliferation activities or the support of terrorist groups.
 

Title II: Divestment from Certain Companies That Invest in Iran - 
(Sec. 202) Declares the sense of Congress that the U.S. government should support the decision of any state or local government to divest from, or to prohibit the investment of its assets in, a person that poses a financial or reputational risk.
 
Authorizes a state or local government to adopt and enforce measures to divest its assets from, or prohibit investment of assets in, persons that engage in certain investment activities in Iran.
 
Defines such a person as one who: (1) has an investment of $20 million or more in the energy sector of Iran or in a person that provides oil or liquified natural gas tankers, or products used to construct or maintain pipelines used to transport oil or liquified natural gas, for the energy sector in Iran; or (2) is a financial institution that extends $20 million or more in credit to another person, for 45 days or more, if that person will use the credit to invest in the energy sector in Iran. 
 
Prescribes requirements for acceptable divestment measures.
 
Declares the sense of Congress that a state or local government should not adopt a divestment measure with respect to a person unless it has: (1) made every effort to avoid erroneously targeting the person; and (2) verified that the person engages in specified investment activities in Iran.
 
(Sec. 203) Amends the Investment Company Act of 1940 to shield any registered investment company from civil, criminal, or administrative action based upon its divesting from, or avoiding investing in, securities issued by companies with such investments in the energy sector of Iran.
 
(Sec. 204) Expresses the sense of Congress that a fiduciary of an employee benefit plan may divest plan assets from, or avoid investing plan assets in, persons that have made such investments in the energy sector of Iran, without breaching the responsibilities, obligations, or duties imposed upon the fiduciary by the Employee Retirement Income Security Act of 1974 (ERISA).
 

Title III: Prevention of Transshipment, Reexportation, or Diversion of Sensitive Items to Iran - 
(Sec. 302) Requires the Director of National Intelligence to report to the Secretary of Commerce, the Secretary of State, the Secretary of the Treasury, and appropriate congressional committees on all countries of concern with respect to the transshipment, reexportation, or diversion of certain export controlled items to an entity owned or controlled by the government of Iran.
 
(Sec. 303) Directs the Secretary of Commerce to designate a country as a Destination of Possible Diversion Concern if it has: (1) engaged in the transshipment, reexportation, or diversion of U.S.-originating controlled items to unverifiable end users or to entities owned or controlled by Iran; or (2) failed to adequately strengthen its export control systems.
 
Requires the United States to initiate certain government-to-government activities to strengthen such a country's export control systems. 
 
Requires a license to export to a country designated a Destination of Diversion Concern controlled items that could contribute to Iran's obtaining nuclear weapons, biological, or chemical weapons, or its support for acts of international terrorism. Authorizes appropriations.
 
(Sec. 304) Requires the Director of National Intelligence to report to the appropriate congressional committees on expanding the Destination of Possible Diversion Concern system to other countries.
 

Title IV: Effective Date; Sunset - 
(Sec. 401) Sets forth the effective date of this Act.
 
Terminates the requirements of this Act 30 days after the date on which the President certifies to Congress that Iran has ceased: (1) to provide support for acts of international terrorism; and (2) to pursue, acquire, and develop nuclear, biological, and chemical weapons and ballistic missiles and ballistic missile launch technology.


Legislative actions:
action_date: 2008-08-01
text: Placed on Senate Legislative Calendar under General Orders. Calendar No. 939.
action_date: 2008-08-01
text: Committee on Banking, Housing, and Urban Affairs. Original measure reported to Senate by Senator Dodd. With written report No. 110-443.
action_date: 2008-08-01
text: Committee on Banking, Housing, and Urban Affairs. Original measure reported to Senate by Senator Dodd. With written report No. 110-443.
action_date: 2008-08-01
text: Introduced in Senate