[House Report 113-177]
[From the U.S. Government Publishing Office]
113th Congress } { Rept. 113-177
HOUSE OF REPRESENTATIVES
1st Session } { Part 1
======================================================================
NUCLEAR IRAN PREVENTION ACT OF 2013
_______
July 30, 2013.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Royce, from the Committee on Foreign Affairs, submitted the
following
R E P O R T
[To accompany H.R. 850]
[Including cost estimate of the Congressional Budget Office]
The Committee on Foreign Affairs, to whom was referred the
bill (H.R. 850) to impose additional human rights and economic
and financial sanctions with respect to Iran, and for other
purposes, having considered the same, reports favorably thereon
with an amendment and recommends that the bill as amended do
pass.
TABLE OF CONTENTS
Page
The Amendment.................................................... 1
Summary and Purpose.............................................. 21
Background and Need for Legislation.............................. 22
Hearings......................................................... 27
Committee Consideration.......................................... 28
Committee Oversight Findings..................................... 28
New Budget Authority, Tax Expenditures, and Federal Mandates..... 28
Congressional Budget Office Cost Estimate........................ 28
Directed Rule Making............................................. 30
Non-Duplication of Federal Programs.............................. 30
Performance Goals and Objectives................................. 30
Congressional Accountability Act................................. 30
New Advisory Committees.......................................... 30
Earmark Identification........................................... 31
Letters of Jurisdiction.......................................... 31
Section-by-Section Analysis...................................... 32
Changes in Existing Law Made by the Bill, as Reported............ 38
The Amendment
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Nuclear Iran
Prevention Act of 2013''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title and table of contents.
Sec. 2. Findings and statement of policy.
TITLE I--HUMAN RIGHTS AND TERRORISM SANCTIONS
Sec. 101. Mandatory sanctions with respect to financial institutions
that engage in certain transactions on behalf of persons involved in
human rights abuses or that export sensitive technology to Iran.
Sec. 102. Prevention of diversion of certain goods, services and
technologies to Iran.
Sec. 103. Designation of Iran's Revolutionary Guard Corps as foreign
terrorist organization.
Sec. 104. Imposition of sanctions on certain persons responsible for or
complicit in human rights abuses, engaging in censorship, or engaging
in the diversion of goods intended for the people of Iran.
Sec. 105. Sense of Congress on elections in Iran.
Sec. 106. Sense of Congress on designation of a Special Coordinator for
advancing human rights and political participation for women in Iran.
TITLE II--ECONOMIC AND FINANCIAL SANCTIONS
Subtitle A--Amendments to Iran Sanctions Act of 1996
Sec. 201. Imposition of sanctions relating to transportation of crude
oil from Iran and certain imports and exports to and from Iran.
Sec. 202. Transfer to Iran of goods, services, or technology that would
materially contribute to Iran's ability to mine or mill uranium.
Sec. 203. Repeal of waiver of sanctions relating to development of
weapons of mass destruction or other military capabilities.
Subtitle B--Amendments to Comprehensive Iran Sanctions, Accountability,
and Divestment Act of 2010 and Iran Threat Reduction and Syria Human
Rights Act of 2012
Sec. 211. Modifications to prohibition on procurement contracts with
persons that export sensitive technology to Iran.
Sec. 212. Authority of State and local governments to avoid exposure to
sanctioned persons and sectors.
Sec. 213. Sense of Congress regarding the European Central Bank.
Sec. 214. Imposition of sanctions with respect to certain transactions
in foreign currencies.
Sec. 215. Sanctions with respect to certain transactions with Iran.
Subtitle C--Other Matters
Sec. 221. Imposition of sanctions with respect to the Central Bank of
Iran and other Iranian financial institutions.
Sec. 222. Imposition of sanctions with respect to ports, special
economic zones, free economic zones, and strategic sectors of Iran.
Sec. 223. Report on determinations not to impose sanctions on persons
who allegedly sell, supply, or transfer precious metals to or from
Iran.
Sec. 224. Imposition of sanctions with respect to foreign financial
institutions that facilitate financial transactions on behalf of
persons owned or controlled by specially designated nationals.
Sec. 225. Repeal of exemptions under sanctions provisions of National
Defense Authorization Act for Fiscal Year 2013.
Sec. 226. Termination of government contracts with persons who sell
goods, services, or technology to, or conduct any other transaction
with, Iran.
Sec. 227. Conditions for entry and operation of vessels.
TITLE III--ADDITIONAL AUTHORITIES TO PREVENT CENSORSHIP ACTIVITIES IN
IRAN
Sec. 301. Report on implementation of sanctions against the Islamic
Republic of Iran Broadcasting.
Sec. 302. List of persons who are high-risk re-exporters of sensitive
technologies.
Sec. 303. Sense of Congress on provision of intercept technologies to
Iran.
Sec. 304. Sense of Congress on availability of consumer communication
technologies in Iran.
Sec. 305. Expedited consideration of requests for authorization of
transfer of goods and services to Iran to facilitate the ability of
Iranian persons to freely communicate.
TITLE IV--REPORTS AND OTHER MATTERS
Sec. 401. National Strategy on Iran.
Sec. 402. Report on Iranian nuclear and economic capabilities.
Sec. 403. Report on plausibility of expanding sanctions on Iranian oil.
Sec. 404. GAO report on Iranian strategy to evade current sanctions and
other matters.
Sec. 405. Authority to consolidate reports required under Iran
sanctions laws.
Sec. 406. Amendments to definitions under Iran Sanctions Act of 1996
and Iran Threat Reduction and Syria Human Rights Act of 2012.
Sec. 407. Implementation; penalties.
Sec. 408. Severability.
SEC. 2. FINDINGS AND STATEMENT OF POLICY.
(a) Findings.--Congress finds the following:
(1) Iran's acquisition of a nuclear weapons capability
would--
(A) embolden its already aggressive foreign policy,
including its arming of terrorist organizations and
other groups, its efforts to destabilize countries in
the Middle East, and its efforts to target the United
States, United States allies, and United States
interests globally;
(B) increase the risk that Iran would share its
nuclear technology and expertise with extremist groups
and rogue nations;
(C) destabilize global energy markets, posing a
direct and devastating threat to the American and
global economy; and
(D) likely lead other governments in the region to
pursue their own nuclear weapons programs, increasing
the prospect of nuclear proliferation throughout the
region and effectively ending the viability of the
global nonproliferation regime, including the Treaty on
the Non-Proliferation of Nuclear Weapons, done at
Washington, London, and Moscow July 1, 1968, and
entered into force on March 5, 1970.
(2) A nuclear arms-capable Iran possessing intercontinental
ballistic missiles, a development most experts expect could
occur within a decade, would pose a direct nuclear threat to
the United States.
(b) Statement of Policy.--It shall be the policy of the United States
to prevent Iran from acquiring a nuclear weapons capability.
TITLE I--HUMAN RIGHTS AND TERRORISM SANCTIONS
SEC. 101. MANDATORY SANCTIONS WITH RESPECT TO FINANCIAL INSTITUTIONS
THAT ENGAGE IN CERTAIN TRANSACTIONS ON BEHALF OF
PERSONS INVOLVED IN HUMAN RIGHTS ABUSES OR THAT
EXPORT SENSITIVE TECHNOLOGY TO IRAN.
(a) In General.--Section 104(c)(2) of the Comprehensive Iran
Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C.
8513(c)(2)) is amended--
(1) in subparagraph (D), by striking ``or'' at the end;
(2) in subparagraph (E), by striking the period at the end
and inserting ``; or''; and
(3) by adding at the end the following new subparagraph:
``(F) facilitates a significant transaction or
transactions or provides significant financial services
for--
``(i) a person that is subject to sanctions
under section 105(c), 105A(c), 105B(c), or
105C(a); or
``(ii) a person that exports sensitive
technology to Iran and is subject to the
prohibition on procurement contracts as
described in section 106.''.
(b) Effective Date.--The amendments made by subsection (a) take
effect on the date of the enactment of this Act and apply with respect
to any activity described in subparagraph (F) of section 104(c)(2) of
the Comprehensive Iran Sanctions, Accountability, and Divestment Act of
2010 (as added by subsection (a)(3) of this section) initiated on or
after the date that is 90 days after such date of enactment.
(c) Regulations.--Not later than 90 days after the date of the
enactment of this Act, the Secretary of the Treasury shall prescribe
regulations to carry out the amendments made by subsection (a).
SEC. 102. PREVENTION OF DIVERSION OF CERTAIN GOODS, SERVICES AND
TECHNOLOGIES TO IRAN.
(a) Definitions.--Section 301(1) of the Comprehensive Iran Sanctions,
Accountability, and Divestment Act of 2010 (22 U.S.C. 8541(1)) is
amended by striking ``knows or has reason to know'' and inserting
``knows, has reason to know, or should have known''.
(b) Identification of Countries of Concern With Respect to the
Diversion of Certain Goods, Services, and Technologies to or Through
Iran.--Section 302(b) of the Comprehensive Iran Sanctions,
Accountability, and Divestment Act of 2010 (22 U.S.C. 8542(b)) is
amended--
(1) in paragraph (1), by striking ``or'' at the end;
(2) in paragraph (2), by striking the period at the end and
inserting ``; or''; and
(3) by adding at the end the following new paragraph:
``(3) that are--
``(A) items described in the Nuclear Suppliers Group
Guidelines for the Export of Nuclear Material,
Equipment and Technology (published by the
International Atomic Energy Agency as Information
Circular INFCIRC/254/Rev. 3/Part 1, and subsequent
revisions) and Guidelines for Transfers of Nuclear-
Related Dual-Use Equipment, Material, and Related
Technology (published by the International Atomic
Energy Agency as Information Circular INFCIRC/254/Rev.
3/Part 2, and subsequent revisions);
``(B) items on the Missile Technology Control Regime
Equipment and Technology Annex of June 11, 1996, and
subsequent revisions;
``(C) items and substances relating to biological and
chemical weapons the export of which is controlled by
the Australia Group;
``(D) items on the Schedule One or Schedule Two list
of toxic chemicals and precursors the export of which
is controlled pursuant to the Convention on the
Prohibition of the Development, Production, Stockpiling
and Use of Chemical Weapons and on Their Destruction;
or
``(E) items on the Wassenaar Arrangement list of Dual
Use Goods and Technologies and Munitions list of July
12, 1996, and subsequent revisions.''.
(c) Destinations of Diversion Concern.--Section 303(c) of the
Comprehensive Iran Sanctions, Accountability, and Divestment Act of
2010 (22 U.S.C. 8543(c)) is amended--
(1) by striking ``Not later than'' and inserting the
following:
``(1) In general.--Not later than''; and
(2) by adding at the end the following new paragraph:
``(2) Additional measures.--The President may impose
restrictions on United States foreign assistance or measures
authorized under the International Emergency Economic Powers
Act with respect to a country designated as a country of
diversion concern if the President determines such restrictions
or measures would prevent the transfer of United States-origin
goods, services, and technology to Iran.''.
(d) Effective Date.--The amendments made by this section take effect
on the date of the enactment of this Act and apply with respect to
countries identified in any update to the report that is required under
section 302(c) of the Comprehensive Iran Sanctions, Accountability, and
Divestment Act of 2010 and submitted to Congress on or after such date
of enactment.
SEC. 103. DESIGNATION OF IRAN'S REVOLUTIONARY GUARD CORPS AS FOREIGN
TERRORIST ORGANIZATION.
(a) In General.--Subtitle A of title III of the Iran Threat Reduction
and Syria Human Rights Act of 2012 (22 U.S.C. 8741 et seq.) is
amended--
(1) by redesignating section 304 as section 305; and
(2) by inserting after section 303 the following new section:
``SEC. 304. DESIGNATION OF IRAN'S REVOLUTIONARY GUARD CORPS AS FOREIGN
TERRORIST ORGANIZATION.
``(a) In General.--Not later than 30 days after the date of the
enactment of this section, the Secretary of State shall determine if
Iran's Revolutionary Guard Corps meets the criteria for designation as
a foreign terrorist organization as set forth in section 219 of the
Immigration and Nationality Act (8 U.S.C. 1189).
``(b) Affirmative Determination.--If the Secretary of State
determines under subsection (a) that Iran's Revolutionary Guard Corps
meets the criteria set forth under such section 219, the Secretary
shall designate Iran's Revolutionary Guard Corps as a foreign terrorist
organization under such section 219.
``(c) Negative Determination.--
``(1) In general.--If the Secretary of State determines under
subsection (a) that Iran's Revolutionary Guard Corps does not
meet the criteria set forth under such section 219, the
Secretary shall submit to the committees of Congress specified
in subsection (e) a report that contains a detailed
justification as to which criteria have not been met.
``(2) Form.--The report required under paragraph (1) shall be
submitted in unclassified form, but may contain a classified
annex, if necessary.
``(d) Applicability of Sanctions to Quds Force.--The sanctions
applied to any entity designated as a foreign terrorist organization as
set forth in such section 219 shall be applied to the Iran's
Revolutionary Guard Corps Quds Force.
``(e) Committees of Congress Specified.--The committees of Congress
specified in this subsection are the following:
``(1) The Committee on Foreign Affairs, the Committee on the
Judiciary, and the Committee on Homeland Security of the House
of Representatives.
``(2) The Committee on Foreign Relations, the Committee on
the Judiciary, and the Committee on Homeland Security and
Governmental Affairs of the Senate.''.
(b) Clerical Amendment.--The table of contents for the Iran Threat
Reduction and Syria Human Rights Act of 2012 is amended by striking the
item relating to section 304 and inserting the following:
``Sec. 304. Designation of Iran's Revolutionary Guard Corps as foreign
terrorist organization.
``Sec. 305. Rule of construction.''.
SEC. 104. IMPOSITION OF SANCTIONS ON CERTAIN PERSONS RESPONSIBLE FOR OR
COMPLICIT IN HUMAN RIGHTS ABUSES, ENGAGING IN
CENSORSHIP, OR ENGAGING IN THE DIVERSION OF GOODS
INTENDED FOR THE PEOPLE OF IRAN.
(a) Finding and Sense of Congress.--Section 401(a) of the Iran Threat
Reduction and Syria Human Rights Act of 2012 (Public Law 112-158; 126
Stat. 1251) is amended to read as follows:
``(a) Finding and Sense of Congress.--
``(1) Finding.--Congress finds that Iranian persons holding
the following positions in the Government of Iran are
ultimately responsible for and have and continue to knowingly
order, control, direct and implement gross violations of the
human rights of the Iranian people, the human rights of persons
in other countries, censorship, and the diversion of food,
medicine, medical devices, agricultural commodities and other
goods intended for the Iranian people:
``(A) The Supreme Leader of Iran.
``(B) The President of Iran.
``(C) Members of the Council of Guardians.
``(D) Members of the Expediency Council.
``(E) The Minister of Intelligence and Security.
``(F) The Commander of the Iran's Revolutionary Guard
Corps.
``(G) The Commander of the Basij-e-Mostaz'afin.
``(H) The Commander of Ansar-e-Hezbollah.
``(I) The Commander of the Quds Force.
``(J) The Commander in Chief of the Police Force.
``(K) Senior officials or key employees of an
organization described in any of subparagraphs (C)
through (J) or in the Atomic Energy Organization of
Iran, the Islamic Consultative Assembly of Iran, the
Council of Ministers of Iran, the Assembly of Experts
of Iran, the Ministry of Defense and Armed Forces
Logistics of Iran, the Ministry of Justice of Iran, the
Ministry of Interior of Iran, the prison system of
Iran, or the judicial system of Iran.
``(2) Sense of congress.--It is the sense of Congress that--
``(A) the President should include any Iranian person
holding a position in the Government of Iran described
in paragraph (1) on one or more of the lists of persons
subject to sanctions pursuant to section 105(b),
105A(b), 105B(b), or 105C(b) of the Comprehensive Iran
Sanctions, Accountability, and Divestment Act of 2010
(22 U.S.C. 8514(b), 8514a(b), 8514b(b), or 8514c(b));
and
``(B) the President should impose sanctions on such
Iranian person pursuant to section 105, 105A, 105B, or
105C of such Act (as the case may be).''.
(b) Additional Finding and Sense of Congress.--Section 401 of the
Iran Threat Reduction and Syria Human Rights Act of 2012 (Public Law
112-158; 126 Stat. 1251) is amended--
(1) by redesignating subsection (b) as subsection (c); and
(2) by inserting after subsection (a) the following:
``(b) Additional Finding and Sense of Congress.--
``(1) Finding.--Congress finds that other senior officials of
the Government of Iran, its agencies and instrumentalities,
also have and continue to knowingly order, control, direct, and
implement gross violations of the human rights of the Iranian
people and the human rights of persons in other countries.
``(2) Sense of congress.--It is the sense of Congress that--
``(A) the President should investigate violations of
human rights described in paragraph (1) to identify
other senior officials of the Government of Iran that
also have or continue to knowingly order, control,
direct, and implement gross violations of human rights
of the Iranian people and the human rights of persons
in other countries;
``(B) the President should include any such official
on one or more of the lists of persons subject to
sanctions pursuant to section 105(b), 105A(b), 105B(b),
or 105C(b) of the Comprehensive Iran Sanctions,
Accountability, and Divestment Act of 2010 (22 U.S.C.
8514(b), 8514a(b), 8514b(b), or 8514c(b)); and
``(C) the President should impose sanctions on any
such official pursuant to section 105, 105A, 105B, or
105C of such Act (as the case may be).''.
(c) Report.--Section 401(c)(1) of the Iran Threat Reduction and Syria
Human Rights Act of 2012 (Public Law 112-158; 126 Stat. 1251), as
redesignated by subsection (b) of this section, is amended--
(1) by striking ``Not later than'' and inserting the
following:
``(A) In general.--Not later than'';
(2) by striking ``this Act'' and inserting ``the Nuclear Iran
Prevention Act of 2013, and annually thereafter for 3 years'';
(3) by striking ``otherwise directing the commission of'' and
inserting ``otherwise directing--
``(i) the commission of'';
(4) by striking ``Iran.'' and inserting ``Iran;
``(ii) censorship or related activities with
respect to Iran; or
``(iii) the diversion of goods, food,
medicine, medical devices, and agricultural
commodities, intended for the people of
Iran.'';
(5) by striking ``For any such person'' and inserting the
following:
``(B) Requirement relating to persons not included.--
For any such person''; and
(6) by adding at the end the following new subparagraph:
``(C) Requirement relating to financial net worth.--
For each such person described in subparagraph (A) and
each such person described in subparagraph (B), the
Secretary of State shall include in the report a
description of the estimated net worth of the
person.''.
(d) Conforming Amendment.--The heading for section 401 of the Iran
Threat Reduction and Syria Human Rights Act of 2012 (Public Law 112-
158; 126 Stat. 1251) is amended by striking ``committed against'' and
all that follows and inserting ``, engaging in censorship, or engaging
in the diversion of goods intended for the people of iran.''.
(e) Clerical Amendment.--The table of contents for the Iran Threat
Reduction and Syria Human Rights Act of 2012 is amended by striking the
item relating to section 401 and inserting the following:
``Sec. 401. Imposition of sanctions on certain persons responsible for
or complicit in human rights abuses, engaging in censorship, or
engaging in the diversion of goods intended for the people of Iran.''.
SEC. 105. SENSE OF CONGRESS ON ELECTIONS IN IRAN.
(a) Findings.--Congress makes the following findings:
(1) The Iranian people are systematically denied free, fair,
and credible elections by the Government of the Islamic
Republic of Iran.
(2) The unelected and unaccountable Guardian Council
disqualifies hundreds of qualified candidates, including women
and most religious minorities, while the regime intimidates
others into staying out of elections completely.
(3) Voting inconsistencies, including an absence of
international observers, and fraud are commonplace.
(4) The 2009 presidential elections proved that the regime
will engage in large scale vote-rigging to ensure a specific
result.
(5) The Iranian regime combines electoral manipulation with
the ruthless suppression of dissent. Following the 2009
elections, peaceful demonstrators were met with violence by the
regime's security apparatus, including arbitrary detentions,
beatings, kidnappings, rapes, and murders.
(6) The electoral manipulation and human rights violations
are in violation of the Government of Iran's agreed to
obligations under the United Nations International Covenant on
Civil and Political Rights.
(b) Sense of Congress.--It is the sense of the Congress that--
(1) the Iranian people are deprived by their government of
free, fair, and credible elections;
(2) the United States should support freedom, human rights,
civil liberties, and the rule of law in Iran, and elections
that are free and fair, meet international standards, and allow
independent international and domestic electoral observers
unrestricted access to polling and counting stations; and
(3) the United States should support the people of Iran in
their peaceful calls for a representative and responsive
democratic government that respects human rights, civil
liberties, and the rule of law.
SEC. 106. SENSE OF CONGRESS ON DESIGNATION OF A SPECIAL COORDINATOR FOR
ADVANCING HUMAN RIGHTS AND POLITICAL PARTICIPATION
FOR WOMEN IN IRAN.
It is the sense of Congress that the Secretary of State should
designate a Special Coordinator position in the Bureau of Near Eastern
Affairs whose primary function is to facilitate cooperation across
departments for the purpose of advancing human rights and political
participation for women in Iran, as well as to prepare evidence and
information to be used in identifying Iranian officials for designation
as human rights violators for their involvement in violating the human
rights of women in Iran.
TITLE II--ECONOMIC AND FINANCIAL SANCTIONS
Subtitle A--Amendments to Iran Sanctions Act of 1996
SEC. 201. IMPOSITION OF SANCTIONS RELATING TO TRANSPORTATION OF CRUDE
OIL FROM IRAN AND CERTAIN IMPORTS AND EXPORTS TO
AND FROM IRAN.
(a) In General.--Section 5(a)(7)(A) of the Iran Sanctions Act of 1996
(Public Law 104-172; 50 U.S.C. 1701 note) is amended--
(1) in clause (i)--
(A) by striking ``a vessel that, on or after'' and
inserting the following: ``a vessel that--
``(I) on or after''; and
(B) by striking ``and'' at the end and inserting
``or''; and
(C) by adding at the end the following:
``(II)(aa) knowingly transports to or
from Iran any good if the importation
to Iran or exportation from Iran, as
the case may be, of that good is
subject to sanctions under this Act; or
``(bb) knowingly engages in a vessel-
to-vessel transfer of crude oil
transported from Iran;'';
(2) in clause (ii), by striking the period at the end and
inserting ``; or''; and
(3) by adding at the end the following new clause:
``(iii) the person is a person who knowingly
sells, leases, or otherwise facilitates the
transfer of ownership of a vessel to the
Government of Iran, or any agencies or
affiliates thereof, for the purpose of
transportation of crude oil from Iran to
another country.''.
(b) Conforming Amendment.--Section 5(a)(7) of the Iran Sanctions Act
of 1996 (Public Law 104-172; 50 U.S.C. 1701 note) is amended in the
paragraph heading by striking ``from iran'' and inserting ``from iran
and certain imports and exports to and from iran''.
(c) Effective Date.--The amendments made by subsection (a) apply with
respect to actions described in subclause (II) of section 5(a)(7)(A)(i)
of the Iran Sanctions Act of 1996 (as added by such subsection) and
actions described in clause (iii) of section 5(a)(7)(A) of the Iran
Sanctions Act of 1996 (as added by such subsection), as the case may
be, that occur on or after the date that is 90 days after the date of
the enactment of this Act.
SEC. 202. TRANSFER TO IRAN OF GOODS, SERVICES, OR TECHNOLOGY THAT WOULD
MATERIALLY CONTRIBUTE TO IRAN'S ABILITY TO MINE OR
MILL URANIUM.
(a) In General.--Section 5(b)(2) of the Iran Sanctions Act of 1996
(Public Law 104-172; 50 U.S.C. 1701 note) is amended by adding at the
end the following new subparagraph:
``(C) Transfer to iran of goods, services, or
technology that can be used for mining or milling of
uranium.--Except as provided in subsection (f), the
President shall impose 5 or more of the sanctions
described in section 6(a) with respect to a person if
the President determines that the person knowingly
transferred, on or after the date of the enactment of
the Nuclear Iran Prevention Act of 2013, to Iran goods,
services, or technology that would materially
contribute to Iran's ability to mine or mill
uranium.''.
(b) Conforming Amendment.--Section 5(b) of such Act is amended in the
heading for paragraph (2) by adding at the end before the period the
following: ``and other related activities''.
SEC. 203. REPEAL OF WAIVER OF SANCTIONS RELATING TO DEVELOPMENT OF
WEAPONS OF MASS DESTRUCTION OR OTHER MILITARY
CAPABILITIES.
Section 9(c)(1) of the Iran Sanctions Act of 1996 (Public Law 104-
172; 50 U.S.C. 1701 note) is amended--
(1) by striking subparagraph (B);
(2) by redesignating subparagraph (C) as subparagraph (B);
and
(3) in subparagraph (B) (as redesignated by paragraph (2) of
this section)--
(A) by striking ``or (B)'' each place it appears; and
(B) by striking ``, as applicable''.
Subtitle B--Amendments to Comprehensive Iran Sanctions, Accountability,
and Divestment Act of 2010 and Iran Threat Reduction and Syria Human
Rights Act of 2012
SEC. 211. MODIFICATIONS TO PROHIBITION ON PROCUREMENT CONTRACTS WITH
PERSONS THAT EXPORT SENSITIVE TECHNOLOGY TO IRAN.
(a) Application to Owners and Subsidiaries.--Subsection (a) of
section 106 of the Comprehensive Iran Sanctions, Accountability, and
Divestment Act of 2010 (Public Law 111-195; 22 U.S.C. 8515) is
amended--
(1) by striking ``goods or services with a person'' and
inserting the following: ``goods or services--
``(1) with a person'';
(2) in paragraph (1), as added by paragraph (1) of this
subsection, by striking the period at the end and inserting and
inserting ``; or''; and
(3) by adding at the end the following new paragraph:
``(2) with respect to a person acting on behalf of or at the
direction of, or owned or controlled by, a person described in
paragraph (1) or a person who owns or controls a person
described in paragraph (1).''.
(b) Sensitive Technology Defined.--Subsection (c)(1) of such section
is amended by striking ``is to be used specifically'' and inserting
``has been designed or specifically modified''.
(c) Presidential Determination and Imposition of Additional
Sanctions.--Such section, as so amended, is further amended by adding
at the end the following new subsection:
``(e) Presidential Determination and Imposition of Additional
Sanctions.--The President shall impose 5 or more of the sanctions
described in section 6(a) of the Iran Sanctions Act of 1996 (Public Law
104-172; 50 U.S.C. 1701 note) with respect to--
``(1) a person if the President determines that the person
knowingly exports sensitive technology to Iran; or
``(2) a person acting on behalf of or at the direction of, or
owned or controlled by, a person described in paragraph (1) or
a person who owns or controls a person described in paragraph
(1).''.
(d) Conforming Amendment.--The heading of such section is amended by
inserting ``and imposition of sanctions against'' after ``with''.
(e) Clerical Amendment.--The table of contents for the Comprehensive
Iran Sanctions, Accountability, and Divestment Act of 2010 is amended
by striking the item relating to section 106 and inserting the
following:
``Sec. 106. Prohibition on procurement contracts with and imposition of
sanctions against persons that export sensitive technology to Iran.''.
(f) Effective Date.--The amendments made by this section take effect
on the date of the enactment of this Act and apply with respect to
exports of sensitive technology to Iran that occur on or after such
date of enactment.
SEC. 212. AUTHORITY OF STATE AND LOCAL GOVERNMENTS TO AVOID EXPOSURE TO
SANCTIONED PERSONS AND SECTORS.
(a) In General.--Section 202 of the Comprehensive Iran Sanctions,
Accountability, and Divestment Act of 2010 (22 U.S.C. 8532) is amended
by striking subsections (a), (b), and (c) and inserting the following:
``(a) Sense of Congress.--It is the sense of Congress that the United
States should support the decision of any State or local government to
divest from or prohibit the investment of assets of the State or local
government, to prohibit the issuance of licenses to conduct business in
the State or locality to, and to impose disclosure and transparency
requirements on, a person that invests in or conducts transactions for
or with a person or sector subject to sanctions with respect to Iran.
``(b) Authority.--Notwithstanding any other provision of law, a State
or local government may adopt and enforce measures that meet the
requirements of subsection (d)--
``(1) to divest the assets of the State or local government
from a person described in subsection (c);
``(2) to prohibit investment of the assets of the State or
local government in any such person;
``(3) to prohibit the issuance of licenses to conduct
business in the State or locality to any such person; or
``(4) to impose disclosure and transparency requirements on
any such person.
``(c) Persons Described.--A person described in this subsection is a
person that invests in or engages in any transaction with or for any
person engaged in any activity for which sanctions may be imposed under
any provision of Federal law imposing sanctions with respect to
Iran.''.
(b) Conforming Amendments.--Section 202 of the Comprehensive Iran
Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8532)
is amended--
(1) in subsection (d)(4), by striking ``engages in investment
activities in Iran described in subsection (c)'' and inserting
``is a person described in subsection (c)'';
(2) in subsection (f), by striking ``or (i)'' and inserting
``or (g)'';
(3) by striking subsections (g) and (h) and by redesignating
subsections (i) and (j) as subsections (g) and (h),
respectively; and
(4) in paragraph (1) of subsection (g), as redesignated by
paragraph (3), by striking ``(determined without regard to
subsection (c))''.
(c) Effective Date.--The amendments made by this section apply to
measures adopted by State and local governments on or after the date of
the enactment of this Act.
SEC. 213. SENSE OF CONGRESS REGARDING THE EUROPEAN CENTRAL BANK.
(a) Findings.--Congress finds the following:
(1) The Government of Iran, its agencies and
instrumentalities, continue to have access to, and utilize,
euro-denominated transactions, including for goods and services
that are subject to sanctions imposed by the United States, the
European Union and its member states and by the United Nations.
(2) The Guidelines of the European Central Bank (Article
39(1)) states that: ``Participants shall be deemed to be aware
of, and shall comply with, all obligations on them relating to
legislation on data protection, prevention of money laundering
and the financing of terrorism, proliferation-sensitive nuclear
activities and the development of nuclear weapons delivery
systems, in particular in terms of implementing appropriate
measures concerning any payments debited or credited on their
PM accounts.''
(3) United States and European convergence with respect to
United States sanctions efforts toward the Government of Iran
is a vital component of United States policy aimed at
preventing the Government of Iran from acquiring a nuclear
weapons capability.
(b) Sense of Congress.--It is the sense of Congress that the
President should continue to closely coordinate and cooperate with the
European Union and its member states to restrict access to and use of
the euro currency by the Government of Iran, its agencies and
instrumentalities, for transactions with the exception of food,
medicine, medical devices, and agricultural commodities.
SEC. 214. IMPOSITION OF SANCTIONS WITH RESPECT TO CERTAIN TRANSACTIONS
IN FOREIGN CURRENCIES.
(a) Imposition of Sanctions.--Subtitle B of title II of the Iran
Threat Reduction and Syria Human Rights Act of 2012 (22 U.S.C. 8721 et
seq.) is amended by inserting after section 220 the following:
``SEC. 220A. IMPOSITION OF SANCTIONS WITH RESPECT TO CERTAIN
TRANSACTIONS IN FOREIGN CURRENCIES.
``(a) In General.--The President--
``(1) shall prohibit the opening, and prohibit or impose
strict conditions on the maintaining, in the United States of a
correspondent account or a payable-through account by a foreign
financial institution that is a person described in subsection
(b); and
``(2) may impose sanctions pursuant to the International
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) with
respect to any other person described in subsection (b).
``(b) Person Described.--A person described in this subsection is a
person the President determines has--
``(1) knowingly conducted or facilitated a significant
transaction involving the currency of a country other than the
country in which the person is operating at the time of the
transaction with, for, or on behalf of--
``(A) the Central Bank of Iran or another Iranian
financial institution designated by the Secretary of
the Treasury for the imposition of sanctions pursuant
to the International Emergency Economic Powers Act (50
U.S.C. 1701 et seq.); or
``(B) a person described in section 1244(c)(2) of the
Iran Freedom and Counter-Proliferation Act (22 U.S.C.
8803(c)(2)) (other than a person described in
subparagraph (C)(iii) of that section); or
``(2) knowingly conducted or facilitated a significant
transaction by another person involving the currency of a
country other than the country in which that other person is
operating at the time of the transaction, with, for, or on
behalf of a person described in subparagraph (A) or (B) of
paragraph (1).
``(c) Waiver.--
``(1) In general.--The President may waive the application of
subsection (a) with respect to a person for a period of not
more than 180 days, and may renew that waiver for additional
periods of not more than 180 days, if the President--
``(A) determines that the waiver is vital to the
national security of the United States; and
``(B) not less than 7 days before the waiver or the
renewal of the waiver, as the case may be, takes
effect, submits a report to the appropriate
congressional committees on the waiver and the reason
for the waiver.
``(2) Form of report.--Each report submitted under paragraph
(1)(B) shall be submitted in unclassified form but may include
a classified annex.
``(d) Rule of Construction.--Nothing in this section shall be
construed to prohibit any person from, or authorize or require the
imposition of sanctions with respect to any person for, conducting or
facilitating any transaction in the currency of the country in which
the person is operating at the time of the transaction for the sale of
agricultural commodities, food, medicine, or medical devices.
``(e) Definitions.--In this section:
``(1) Account; correspondent account; payable-through
account.--The terms `account', `correspondent account', and
`payable-through account' have the meanings given those terms
in section 5318A of title 31, United States Code.
``(2) Agricultural commodity.--The term `agricultural
commodity' has the meaning given that term in section 102 of
the Agricultural Trade Act of 1978 (7 U.S.C. 5602).
``(3) Foreign financial institution.--The term `foreign
financial institution' has the meaning given that term in
section 561.308 of title 31, Code of Federal Regulations (or
any corresponding similar regulation or ruling).
``(4) Iranian financial institution.--The term `Iranian
financial institution' has the meaning given that term in
section 104A(d) of the Comprehensive Iran Sanctions,
Accountability, and Divestment Act of 2010 (22 U.S.C.
8513b(d)).
``(5) Medical device.--The term `medical device' has the
meaning given the term `device' in section 201 of the Federal
Food, Drug, and Cosmetic Act (21 U.S.C. 321).
``(6) Medicine.--The term `medicine' has the meaning given
the term `drug' in section 201 of the Federal Food, Drug, and
Cosmetic Act (21 U.S.C. 321).
``(7) Transaction.--The term `transaction' includes a foreign
exchange swap, a foreign exchange forward, and any other type
of similar currency exchange or conversion or similar
derivative instrument.''.
(b) Conforming Amendments.--
(1) Implementation.--Section 601(a)(1) of the Iran Threat
Reduction and Syria Human Rights Act of 2012 (22 U.S.C.
8781(a)(1)) is amended by inserting ``220A,'' after ``220,''.
(2) Penalties.--Section 601(b)(2)(A) of such Act (22 U.S.C.
8781(b)(2)(A)) is amended by striking ``and 220,'' and
inserting ``220, and 220A,''.
(3) Termination.--Section 605(a) of such Act (22 U.S.C.
8785(a)) is amended by inserting ``220A,'' after ``220,''.
(c) Clerical Amendment.--The table of contents for the Iran Threat
Reduction and Syria Human Rights Act of 2012 is amended by inserting
after the item relating to section 220 the following:
``Sec. 220A. Imposition of sanctions with respect to certain
transactions in foreign currencies.''.
(d) Effective Date.--The amendments made by this section take effect
on the date of the enactment of this Act and apply with respect to
transactions entered into on or after May 22, 2013.
SEC. 215. SANCTIONS WITH RESPECT TO CERTAIN TRANSACTIONS WITH IRAN.
(a) In General.--Subtitle B of title II of the Iran Threat Reduction
and Syria Human Rights Act of 2012 (22 U.S.C. 8721 et seq.) is amended
by adding at the end the following new section:
``SEC. 225. SANCTIONS WITH RESPECT TO CERTAIN TRANSACTIONS WITH IRAN.
``(a) Authorization of Sanctions.--
``(1) In general.--Except as specifically provided in this
section, the President may impose sanctions pursuant to the
International Emergency Economic Powers Act (50 U.S.C. 1701 et
seq.) on a foreign person that the President determines has, on
or after the date that is 60 days after the date of the
enactment of the Nuclear Iran Prevention Act of 2013, knowingly
conducted or facilitated a significant financial transaction
with the Central Bank of Iran or other Iranian financial
institution that has been designated by the Secretary of the
Treasury for the imposition of sanctions pursuant to the
International Emergency Economic Powers Act, for--
``(A) the purchase of goods or services by a person
in Iran or on behalf of a person in Iran; or
``(B) the purchase of goods or services from a person
in Iran or on behalf of a person in Iran.
``(2) Rule of construction.--Nothing in this section shall be
construed to affect the imposition of sanctions with respect to
a financial transaction for the purchase of petroleum or
petroleum products from Iran under section 1245 of the National
Defense Authorization Act for Fiscal Year 2012 (Public Law 112-
81; 125 Stat. 1648).
``(b) Exception for Overall Reductions of Exports to and Imports From
Iran.--
``(1) In general.--The President is authorized not to impose
sanctions under subsection (a) on a foreign person if the
President determines and submits to the appropriate
congressional committees a report that contains a determination
of the President that the country with primary jurisdiction
over the foreign person has, during the time period described
in paragraph (2), significantly reduced the value and volume of
imports and exports of goods (other than petroleum or petroleum
products) and services between such country and Iran.
``(2) Time period described.--The time period referred to in
paragraph (1) is the 60-day period ending on the date on which
the President makes the determination under paragraph (1) as
compared to the immediately preceding 60-day period.
``(c) Exception for Sales of Agricultural Commodities, Food, Medicine
and Medical Devices.--The President may not impose sanctions under
subsection (a) on a foreign person with respect to a transaction for
the sale of agricultural commodities, food, medicine or medical devices
to Iran.
``(d) Definitions.--In this section:
``(1) Foreign person.--The term `foreign person' has the
meaning given that term in section 14 of the Iran Sanctions Act
of 1996 (Public Law 104-172; 50 U.S.C. 1701 note).
``(2) Iranian financial institution.--The term `Iranian
financial institution' has the meaning given that term in
section 104A(d) of the Comprehensive Iran Sanctions,
Accountability, and Divestment Act of 2010 (22 U.S.C.
8513b(d)).''.
(b) Clerical Amendment.--The table of contents for the Iran Threat
Reduction and Syria Human Rights Act of 2012 is amended by inserting
after the item relating to section 224 the following:
``Sec. 225. Sanctions with respect to certain transactions with
Iran.''.
Subtitle C--Other Matters
SEC. 221. IMPOSITION OF SANCTIONS WITH RESPECT TO THE CENTRAL BANK OF
IRAN AND OTHER IRANIAN FINANCIAL INSTITUTIONS.
(a) Exception to Applicability of Sanctions With Respect to Petroleum
Transactions.--Section 1245(d)(4)(D)(i)(I) of the National Defense
Authorization Act for Fiscal Year 2012 (Public Law 112-81; 125 Stat.
1648; 22 U.S.C. 8513a(d)(4)(D)(i)(I)) is amended--
(1) by striking ``reduced reduced'' and inserting
``reduced'';
(2) by inserting ``value and'' before ``volume'';
(3) by inserting ``or of Iranian origin'' after ``from
Iran''; and
(4) by adding at the end before the semicolon the following:
``, and the President certifies in writing to Congress that the
President has based such determination on accurate information
on that country's total purchases of crude oil from Iran or of
Iranian origin''.
(b) Financial Transactions Described.--Section 1245(d)(4)(D)(ii)(II)
of the National Defense Authorization Act for Fiscal Year 2012 (Public
Law 112-81; 125 Stat. 1648) is amended--
(1) by striking ``(II)'' and inserting ``(II)(aa)'';
(2) in item (aa) (as designated by paragraph (1) of this
subsection), by striking the period at the end and inserting
``; and''; and
(3) by adding at the end the following new item:
``(bb) the foreign financial
institution holding the account
described in item (aa) does not
knowingly facilitate any significant
financial transfers for, with, or on
behalf of the Government of Iran,
unless the transaction is excepted from
sanctions under paragraph (2) or is a
transaction described in subclause (I)
and item (aa).''.
(c) Strategy to Reduce Crude Oil Purchases From Iran or of Iranian
Origin.--
(1) Statement of policy.--It is the policy of the United
States to seek to ensure that countries that have received an
exception under subparagraph (D)(i)(I) of section 1245(d)(4) of
the National Defense Authorization Act for Fiscal Year 2012
(Public Law 112-81; 125 Stat. 1648) shall reduce their crude
oil purchases from Iran or of Iranian origin so that the
aggregate amount of such purchases is reduced by not less than
an average of 1,000,000 barrels of crude oil per day by the end
of the 1-year period beginning on the date of submission of the
strategy described in subparagraph (E)(ii) of such section (as
added by paragraph (2) of this subsection).
(2) Amendment.--Section 1245(d)(4) of the National Defense
Authorization Act for Fiscal Year 2012 (Public Law 112-81; 125
Stat. 1648) is amended by adding at the end the following new
subparagraph:
``(E) Strategy to reduce crude oil purchases from
iran or of iranian origin.--
``(i) In general.--Not later than 30 days
after the date of the enactment of the Nuclear
Iran Prevention Act of 2013, the President
shall make a determination, based on the
information contained in the most recent report
required under subparagraph (A), of whether
each country that received an exception under
subparagraph (D)(i)(I) before such date of
enactment is able to reduce its crude oil
purchases from Iran or of Iranian origin so
that the aggregate amount of such purchases is
reduced by not less than an average of
1,000,000 barrels of crude oil per day by the
end of the 1-year period beginning on the date
of submission of the strategy described in
clause (ii). If the President makes an initial
determination under this clause that the
requirements of this clause cannot be met, then
the President shall continue to make a
determination under this clause every 90 days
thereafter as to whether or not the
requirements of this clause can be met.
``(ii) Strategy.--If the President determines
that the requirements of clause (i) can be met,
then not later than 60 days after the date of
such affirmative determination, the President
shall develop and submit to the appropriate
congressional committees a strategy to seek to
ensure that the requirements of clause (i) are
met by the end of the 1-year period beginning
on such date of submission.
``(iii) Future exceptions.--
``(I) Affirmative determination.--If
the President determines that the
strategy described in clause (ii) was
achieved, then each country described
in clause (i) shall be eligible to
receive one or more further exceptions
under subparagraph (D)(i)(I) in
accordance with the provisions of such
subparagraph.
``(II) Negative determination.--
Except as provided in subclause (III),
if the President determines that the
strategy described in clause (ii) was
not achieved, then each country
described in clause (i) shall be
ineligible to receive any further
exception under subparagraph (D)(i)(I)
in accordance with the provisions of
such subparagraph.
``(III) Exception.--
``(aa) In general.--Subclause
(II) shall not apply with
respect to a country described
in clause (i) if the country--
``(AA) dramatically
reduced its crude oil
purchases from Iran or
of Iranian origin
during the 1-year
period described in
clause (ii); and
``(BB) has committed
itself to continue to
reduce its crude oil
purchases from Iran or
of Iranian origin to a
de minimis level.
``(bb) Data.--The President
shall submit to the appropriate
congressional committees all
data used to make a
determination under item (aa)
not later than 15 days before
issuing an exception under item
(aa).
``(iv) Appropriate congressional
committees.--In this subparagraph, the term
`appropriate congressional committees' means--
``(I) the Committee on Foreign
Affairs and the Committee on Financial
Services of the House of
Representatives; and
``(II) the Committee on Foreign
Relations and the Committee on Banking,
Housing, and Urban Affairs of the
Senate.''.
(d) Definition of Crude Oil.--Section 1245(d)(4)(D) of the National
Defense Authorization Act for Fiscal Year 2012 (22 U.S.C.
8513a(d)(4)(D)) is amended by adding at the end the following new
clause:
``(iii) Crude oil.--In this subparagraph, the
term `crude oil' includes unfinished oils,
liquefied petroleum gases, distillate fuel oil,
and residual fuel oil.''.
(e) Waiver.--Section 1245(d)(5)(A) of the National Defense
Authorization Act for Fiscal Year 2012 (22 U.S.C. 8513a(d)(5)(A)) is
amended by striking ``in the national'' and inserting ``vital to the
national''.
(f) Definitions of ``Significant Reduction''.--Section 1245(h)(3) of
the National Defense Authorization Act for Fiscal Year 2012 (22 U.S.C.
8513a(h)(3)) is amended--
(1) by striking ``price or volume'' and inserting ``price and
volume''; and
(2) by adding at the end before the period the following:
``and at least a pro rata amount totaling, in the aggregate,
not less than an average of 1,000,000 barrels of crude oil per
day by the end of the 1-year period beginning on the date of
submission of the strategy described in subsection
(d)(4)(E)(ii)''.
(g) Effective Date.--The amendments made by this section take effect
beginning on the date that is 180 days after the date of the enactment
of this Act.
SEC. 222. IMPOSITION OF SANCTIONS WITH RESPECT TO PORTS, SPECIAL
ECONOMIC ZONES, FREE ECONOMIC ZONES, AND STRATEGIC
SECTORS OF IRAN.
(a) Findings.--Subsection (a)(1) of section 1244 of the National
Defense Authorization Act for Fiscal Year 2013 (22 U.S.C. 8803) is
amended by striking ``and shipbuilding'' and inserting ``shipbuilding,
automotive, construction, engineering, or mining''.
(b) Designation of Ports, Special Economic Zones, Free Economic
Zones, and Entities in Strategic Sectors as Entities of Proliferation
Concern.--Subsection (b) of such section is amended--
(1) in the subsection heading, by striking ``and Entities in
the Energy, Shipping, and Shipbuilding Sectors'' and inserting
``, Special Economic Zones, Free Economic Zones, and Entities
in Strategic Sectors''; and
(2) by striking ``and entities in the energy, shipping, and
shipbuilding sectors'' and inserting ``, entities that operate
special economic zones or free economic zones, and entities in
strategic sectors (as defined in subsection (c)(4))''.
(c) Blocking of Property of Ports, Special Economic Zones, Free
Economic Zones, and Entities in Strategic Sectors.--Subsection (c) of
such section is amended--
(1) in the subsection heading, by striking ``Entities in
Energy, Shipping, and Shipbuilding Sectors'' and inserting
``Ports, Special Economic Zones, Free Economic Zones, and
Entities in Strategic Sectors'';
(2) in paragraph (2)--
(A) by striking ``the energy, shipping, or
shipbuilding sectors'' each place it appears and
inserting ``a strategic sector (as defined in paragraph
(4)(A))''; and
(B) by inserting ``, special economic zone, or free
economic zone'' after ``port'' each place it appears;
and
(3) by adding at the end the following new paragraphs:
``(4) Strategic sector defined.--In this section, the term
`strategic sector' means--
``(A) the energy, shipping, shipbuilding, automotive,
or mining sector of Iran;
``(B) the construction or engineering sector of Iran
if the President determines and reports to Congress not
later than 45 days after the date of the enactment of
the Nuclear Iran Prevention Act of 2013 that the
construction or engineering sector of Iran, as the case
may be, is of strategic importance to Iran; and
``(C) any other sector that the President designates
as of strategic importance to Iran.
``(5) Notification and report relating to strategic
sectors.--
``(A) Notification.--The President shall submit to
Congress a notification of the designation of a sector
as a strategic sector of Iran for purposes of paragraph
(4)(C) not later than 30 days after the date on which
the President makes such designation.
``(B) Report.--Not later than 90 days after the date
on which the President submits to Congress a
notification of the designation of a sector as a
strategic sector of Iran under subparagraph (A), the
Comptroller General of the United States shall submit
to Congress a report that contains--
``(i) a review and comment on such
designation; and
``(ii) recommendations regarding the
designation of additional sectors as strategic
sectors of Iran for purposes of paragraph
(4).''.
(d) Additional Sanctions With Respect to Strategic Sectors.--
Subsection (d) of such section is amended--
(1) in the subsection heading, by striking ``the Energy,
Shipping, and Shipbuilding Sectors'' and inserting ``Strategic
Sectors''; and
(2) in paragraph (3), by striking ``the energy, shipping, or
shipbuilding sectors'' and inserting ``a strategic sector (as
defined in subsection (c)(4)(A))''.
(e) Exception for Afghanistan Reconstruction.--Subsection (f) of such
section is amended--
(1) in the matter preceding paragraph (1), by inserting ``for
a period of not more than 1 year, and may renew that exception
for additional periods of not more than 1 year'' after
``economic development for Afghanistan'';
(2) in paragraph (1)--
(A) by striking ``to the extent that'' and inserting
``if'';
(B) by inserting ``or the renewal of the exception,
as the case may be,'' after ``such an exception''; and
(C) by striking ``in the national interest'' and
inserting ``in the national security interest''; and
(3) in paragraph (2)--
(A) by inserting ``or the renewal of the exception,
as the case may be,'' before ``not later than 15
days''; and
(B) by inserting at the end before the period the
following: ``or the renewal of the exception''.
(f) Conforming Amendment.--Such section is further amended in the
section heading by striking ``the energy, shipping, and shipbuilding
sectors'' and inserting ``ports, special economic zones, free economic
zones, and strategic sectors''.
(g) Effective Date.--The amendments made by this section--
(1) take effect on the date that is 90 days after the date of
the enactment of this Act; and
(2)(A) with respect to subsection (c) of section 1244 of the
National Defense Authorization Act for Fiscal Year 2013, as so
amended, apply with respect to all transactions in all property
and interests in property of any person described in subsection
(c)(2) of such section that occur on or after the date that is
180 days after such date of enactment; and
(B)(i) with respect to subsection (d)(1) of section 1244 of
the National Defense Authorization Act for Fiscal Year 2013,
apply with respect to the sale, supply, or transfer to or from
Iran of goods or services described in subsection (d)(3) of
such section, as so amended, that occurs on or after the date
that is 180 days after such date of enactment; and
(ii) with respect to subsection (d)(2) of section 1244 of the
National Defense Authorization Act for Fiscal Year 2013, apply
with respect to the conduct or facilitation of a significant
financial transaction for the sale, supply, or transfer to or
from Iran of goods or services described in subsection (d)(3)
of such section, as so amended, that occurs on or after the
date that is 180 days after such date of enactment.
SEC. 223. REPORT ON DETERMINATIONS NOT TO IMPOSE SANCTIONS ON PERSONS
WHO ALLEGEDLY SELL, SUPPLY, OR TRANSFER PRECIOUS
METALS TO OR FROM IRAN.
Section 1245 of the National Defense Authorization Act for Fiscal
Year 2013 (22 U.S.C. 8804) is amended--
(1) by redesignating subsection (h) as subsection (i); and
(2) by inserting after subsection (g) the following new
subsection:
``(h) Report on Determinations Not to Impose Sanctions on Persons Who
Allegedly Sell, Supply, or Transfer Precious Metals to or From Iran.--
``(1) In general.--Not later than 90 days after the date of
the enactment of Nuclear Iran Prevention Act of 2013, and every
90 days thereafter, the President shall submit to the
appropriate congressional committees a report on each
determination of the President during the preceding 90-day
period not to impose sanctions under subsection (a) or (c) with
respect to a person who allegedly sells, supplies, or transfers
precious metals, directly or indirectly, to or from Iran,
together with the reasons for such determination.
``(2) Form.--The report required by paragraph (1) shall be
submitted in unclassified form, but may contain a classified
annex, if necessary.''.
SEC. 224. IMPOSITION OF SANCTIONS WITH RESPECT TO FOREIGN FINANCIAL
INSTITUTIONS THAT FACILITATE FINANCIAL TRANSACTIONS
ON BEHALF OF PERSONS OWNED OR CONTROLLED BY
SPECIALLY DESIGNATED NATIONALS.
Section 1247 of the National Defense Authorization Act for Fiscal
Year 2013 (22 U.S.C. 8806) is amended--
(1) by redesignating subsection (f) as subsection (g); and
(2) by inserting after subsection (e) the following new
subsection:
``(f) Persons Owned or Controlled by Specially Designated
Nationals.--
``(1) In general.--The President shall impose sanctions
described in subsection (a) with respect to a foreign financial
institution, including but not limited to a foreign central
bank, that the President determines has, on or after the date
that is 90 days after the date of the enactment of the Nuclear
Iran Prevention Act of 2013, knowingly facilitated a
significant financial transaction on behalf of any person
determined by the President to be directly owned or controlled
by an Iranian person included on the list of specially
designated nationals and blocked persons maintained by the
Office of Foreign Assets Control of the Department of the
Treasury (other than an Iranian financial institution described
in subsection (b)).
``(2) Sense of congress.--It is the sense of Congress that
the President routinely should determine on or after the date
of the enactment of the Nuclear Iran Prevention Act of 2013
those persons that are directly or indirectly owned or
controlled by an Iranian person included on the list of
specially designated nationals and blocked persons maintained
by the Office of Foreign Assets Control of the Department of
the Treasury (other than an Iranian financial institution
described in subsection (b)).
``(3) Consideration of data from other countries and
nongovernmental organizations.--The President shall consider
credible data already obtained by other countries and
nongovernmental organizations in making determinations
described in paragraph (1).''.
SEC. 225. REPEAL OF EXEMPTIONS UNDER SANCTIONS PROVISIONS OF NATIONAL
DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2013.
Subtitle D of title XII of the National Defense Authorization Act for
Fiscal Year 2013 (22 U.S.C. 8801 et seq.) is amended--
(1) in section 1244--
(A) in subsection (c)(1)--
(i) by striking ``(1) Blocking of property.--
'' and all that follows through ``On and
after'' and inserting ``(1) Blocking of
property.--On and after''; and
(ii) by striking subparagraph (B); and
(B) in subsection (d)(1)--
(i) by striking ``(1) Sale, supply, or
transfer of certain goods and services.--'' and
all that follows through ``Except as provided''
and inserting ``(1) Sale, supply, or transfer
of certain goods and services.--Except as
provided''; and
(ii) by striking subparagraph (B);
(2) in section 1245(a)--
(A) by striking ``(a) Sale, Supply, or Transfer of
Certain Materials.--'' and all that follows through
``The President'' and inserting ``(a) Sale, Supply, or
Transfer of Certain Materials.--The President'';
(B) by redesignating subparagraphs (A), (B), and (C)
as paragraphs (1), (2), and (3), respectively (and by
redesignating all sub-units therein accordingly);
(C) in paragraph (3)(B) (as redesignated)--
(i) in clause (i), by striking ``subclause
(I) of clause (i)'' and inserting ``clause (i)
of subparagraph (A)'';
(ii) in clause (ii), by striking ``subclause
(II) of that clause'' and inserting ``clause
(ii) of that subparagraph''; and
(iii) in clause (iii), by striking
``subclause (III) of that clause'' and
inserting ``clause (iii) of that
subparagraph''; and
(D) by striking ``(2) exception.--'' and all that
follows through ``paragraph (1).''; and
(3) in section 1246(a)--
(A) by striking ``(a) Imposition of Sanctions.--''
and all that follows through ``Except as provided'' and
inserting ``(a) Imposition of Sanctions.--Except as
provided'';
(B) by redesignating subparagraphs (A), (B), and (C)
as paragraphs (1), (2), and (3), respectively (and by
redesignating all sub-units therein accordingly); and
(C) by striking ``(2) exception.--'' and all that
follows through ``paragraph (1).''; and
SEC. 226. TERMINATION OF GOVERNMENT CONTRACTS WITH PERSONS WHO SELL
GOODS, SERVICES, OR TECHNOLOGY TO, OR CONDUCT ANY
OTHER TRANSACTION WITH, IRAN.
(a) Modification of Federal Acquisition Regulation.--Not later than
90 days after the date of the enactment of this Act, the Federal
Acquisition Regulation shall be revised to require a certification from
each person that is a prospective contractor that the person, and any
person under common ownership or control with the person, does not sell
goods, services, or technology to, or conduct any other transaction
with, Iran for which sanctions may be imposed under this Act.
(b) Remedies.--
(1) In general.--If the head of an executive agency
determines that a person has submitted a false certification
under subsection (a) on or after the date on which the
applicable revision of the Federal Acquisition Regulation
required by this section becomes effective, the head of that
executive agency shall terminate a contract with such person or
debar or suspend such person from eligibility for Federal
contracts for a period of not less than 2 years. Any such
debarment or suspension shall be subject to the procedures that
apply to debarment and suspension under the Federal Acquisition
Regulation under subpart 9.4 of part 9 of title 48, Code of
Federal Regulations.
(2) Inclusion on list of parties excluded from federal
procurement and nonprocurement programs.--The Administrator of
General Services shall include on the List of Parties Excluded
from Federal Procurement and Nonprocurement Programs maintained
by the Administrator under part 9 of the Federal Acquisition
Regulation each person that is debarred, suspended, or proposed
for debarment or suspension by the head of an executive agency
on the basis of a determination of a false certification under
paragraph (1).
(c) Rule of Construction.--This section shall not be construed to
limit the use of other remedies 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 subsection (a).
(d) Waivers.--
(1) In general.--The President may on a case-by-case basis
waive the requirement that a person make a certification under
subsection (a) if the President determines and certifies in
writing to the congressional committees described in paragraph
(2) that it is essential to the national security interests of
the United States to do so.
(2) Congressional committees described.--The congressional
committees referred to in paragraph (1) are--
(A) the Committee on Foreign Affairs, the Committee
on Armed Services, and the Committee on Oversight and
Government Reform of the House of Representatives; and
(B) the Committee on Foreign Relations, the Committee
on Armed Services, and the Committee on Homeland
Security and Governmental Affairs of the Senate.
(e) Definitions.--In this section:
(1) Executive agency.--The term ``executive agency'' has the
meaning given that term in section 133 of title 41, United
States Code.
(2) Federal acquisition regulation.--The term ``Federal
Acquisition Regulation'' means the regulation issued pursuant
to section 1303(a)(1) of title 41, United States Code.
(f) Applicability.--The revisions to the Federal Acquisition
Regulation required under subsection (a) shall apply with respect to
contracts for which solicitations are issued on or after the date that
is 90 days after the date of the enactment of this Act.
SEC. 227. CONDITIONS FOR ENTRY AND OPERATION OF VESSELS.
(a) In General.--The Ports and Waterways Safety Act (33 U.S.C. 1221
et seq.) is amended by adding at the end the following:
``SEC. 16. PROHIBITION ON ENTRY AND OPERATION.
``(a) In General.--No foreign vessel described in subsection (b)
shall enter or operate in the navigable waters of the United States or
transfer cargo in any port or place under the jurisdiction of the
United States.
``(b) Vessels Described.--A vessel referred to in subsection (a) is a
foreign vessel--
``(1) for which a Notice of Arrival is required to be filed
under section 160 of title 33, Code of Federal Regulations, as
in effect on the date of enactment of the Nuclear Iran
Prevention Act of 2013; and
``(2) that is knowingly registered, pursuant to the Geneva
Convention on the High Seas (13 U.S.T. 2312; TIAS 5200; 450
UNTS 82), by a ship registry that is maintaining a registration
of a vessel that is included in the list published under
subsection (c).
``(c) Notification of Governments.--The Secretary of Transportation,
in consultation with the Secretary of State, shall--
``(1) maintain timely information on registrations of all
foreign vessels over 300 gross tons that are--
``(A) owned or operated by or on behalf of--
``(i) the National Iran Tanker Company or the
Islamic Republic of Iran Shipping Line; or
``(ii) any successor to an entity referred to
in clause (i); or
``(B) otherwise owned or operated by or on behalf of
Iran;
``(2) notify each government the agents or instrumentalities
of which are maintaining a registration of a foreign vessel
described in paragraph (1), that all vessels registered under
such government's authority are prohibited from entering or
operating in the navigable waters of the United States or
transferring cargo in any port or place under the jurisdiction
of the United States; and
``(3) publish in the Federal Register a list of vessels
described in paragraph (1), including periodic updates of such
list.
``(d) Notification of Vessels.--
``(1) In general.--Except as provided in paragraphs (2) and
(3), upon receiving a Notice of Arrival under section 160 of
title 33, Code of Federal Regulations (as in effect on the date
of enactment of the Nuclear Iran Prevention Act of 2013) from a
vessel described in (b), the Secretary shall notify the master
of such vessel that the vessel may not enter or operate in the
navigable waters of the United States or transfer cargo in any
port or place under the jurisdiction of the United States.
``(2) Provisional entry.--The Secretary may allow provisional
entry of, or transfer of cargo from, a foreign vessel described
in subsection (b) if such entry or transfer is necessary for
the safety of the vessel or persons aboard.
``(3) Entry for due diligence.--The Secretary may allow entry
of, and transfer of cargo from, a vessel described in
subsection (b) if the master shows the owner and operator of
the vessel exercised due diligence to avoid registration of the
vessel by a registry that registers vessels described in
subsection (c).
``(e) Right of Innocent Passage.--This section shall not be construed
as authority to restrict the right of innocent passage as recognized
under international law.
``(f) Foreign Vessel Defined.--In this section the term `foreign
vessel' has the meaning given that term in section 2101 of title 46,
United States Code.''.
(b) Deadline for Publication.--The Secretary shall publish a list
under section 16(c)(3) of the Ports and Waters Safety Act, as amended
by this section, by not later than 30 days after the date of the
enactment of this Act.
(c) Limitation on Application of Prohibition.--Subsection (a) of
section 16 of the Ports and Waters Safety Act, as amended by this
section, shall not apply until 90 days after the date of publication of
the list required by subsection (c) of such section.
TITLE III--ADDITIONAL AUTHORITIES TO PREVENT CENSORSHIP ACTIVITIES IN
IRAN
SEC. 301. REPORT ON IMPLEMENTATION OF SANCTIONS AGAINST THE ISLAMIC
REPUBLIC OF IRAN BROADCASTING.
(a) In General.--Not later than 90 days after the date of the
enactment of this Act, the Secretary of State shall submit to Congress
a report on the following:
(1) The current status of availability of the Islamic
Republic of Iran Broadcasting (IRIB) on international
satellites, entities that facilitate its operation by providing
services or equipment, and the technical means that it engages
in jamming.
(2) The instances, since January 1, 2012, in which the IRIB
engaged in activities that violated Article 19 of the
International Covenant on Civil and Political Rights, including
broadcasting forced confessions and hate speech against
minorities.
(3) The instances, since January 1, 2012, in which
international broadcasting programs originating from the United
States and Europe have been subject to disruption in Iran, with
relevant details such as which programs were disrupted,
available location information on the origin of the disruption,
and the extent of the disruption.
(b) Coordination.--In developing the report required by subsection
(a), the Secretary of State shall coordinate with the Broadcasting
Board of Governors, the Secretary of the Treasury, and the heads of
other relevant Federal departments and agencies.
(c) Public Availability.--All unclassified portions of the report
required by subsection (a) shall be made publicly available on the
Internet web site of the Department of State.
SEC. 302. LIST OF PERSONS WHO ARE HIGH-RISK RE-EXPORTERS OF SENSITIVE
TECHNOLOGIES.
(a) In General.--Not later than 90 days after the date of the
enactment of this Act, and every 90 days thereafter, the Secretary of
Commerce, in conjunction with the Secretary of State and the Secretary
of the Treasury, shall make publicly available and update as
appropriate a list of persons who are high-risk re-exporters of
sensitive technologies in order to seek to ensure that the Government
of Iran or an entity owned or controlled by that Government is unable
to obtain sensitive technologies through the re-export of such
sensitive technologies by third-party intermediaries.
(b) Definition.--In this section, the term ``sensitive technology''
has the meaning given that term in section 106 of the Comprehensive
Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C.
8515).
SEC. 303. SENSE OF CONGRESS ON PROVISION OF INTERCEPT TECHNOLOGIES TO
IRAN.
It is the sense of Congress that--
(1) those that provide intercept technologies that limit
freedom of speech or expression to the Government of Iran
should be held accountable for the repression of the Iranian
people; and
(2) no person should use an existing contract with the
Government of Iran as a justification to continue to supply
intercept technologies to the Government of Iran for purposes
of restricting the free flow of information.
SEC. 304. SENSE OF CONGRESS ON AVAILABILITY OF CONSUMER COMMUNICATION
TECHNOLOGIES IN IRAN.
It is the sense of Congress that--
(1) the Department of the Treasury and Department of State
should encourage the free flow of information in Iran to
counter the Government of Iran's repression of its own people;
and
(2) in order to facilitate the free flow of information in
Iran, the Department of Treasury should ensure that certain
consumer communication technologies are available to Iranian
civil society and the Iranian people.
SEC. 305. EXPEDITED CONSIDERATION OF REQUESTS FOR AUTHORIZATION OF
TRANSFER OF GOODS AND SERVICES TO IRAN TO
FACILITATE THE ABILITY OF IRANIAN PERSONS TO FREELY
COMMUNICATE.
(a) In General.--Section 413 of the Iran Threat Reduction and Syria
Human Rights Act of 2012 (22 U.S.C. 8753) is amended--
(1) by redesignating subsection (e) as subsection (f); and
(2) by inserting after subsection (d) the following new
subsection:
``(e) Rule of Construction.--The expedited process for the
consideration of complete requests for authorization to engage in the
activities described in subsection (a) shall be construed to also apply
to the transfer of goods and services to Iran to facilitate the ability
of Iranian persons to freely communicate, obtain information, and
access the Internet and other communications systems.''.
(b) Effective Date.--The amendments made by subsection (a) take
effect on the date of the enactment of this Act and apply with respect
to requests described in section 413 of the Iran Threat Reduction and
Syria Human Rights Act of 2012, as so amended, that are submitted to
the Office of Foreign Assets Control on or after such date of
enactment.
TITLE IV--REPORTS AND OTHER MATTERS
SEC. 401. NATIONAL STRATEGY ON IRAN.
(a) National Strategy Required.--The President shall develop a
strategy, to be known as the ``National Strategy on Iran'', that
provides strategic guidance for activities that support the objective
of addressing the threats posed by Iran.
(b) Annual Report.--Not later than 180 days after the date of the
enactment of this Act or January 30, 2014, whichever occurs first, and
every January 30 thereafter, the President shall submit to the
appropriate congressional committees the National Strategy on Iran
required under subsection (a).
(c) Matters To Be Included.--The report required under subsection (b)
shall include, at a minimum, the following:
(1) A description of Iran's grand strategy and security
strategy, including strategic objectives, and the security
posture and objectives of Iran.
(2) A description of the United States strategy to--
(A) address and counter the capabilities of Iran's
conventional forces and Iran's unconventional forces;
(B) disrupt and deny Iranian efforts to develop or
augment capabilities related to nuclear,
unconventional, and missile forces development;
(C) address the Government of Iran's economic
strategy to enable the objectives described in this
subsection;
(D) exploit key vulnerabilities; and
(E) combat Iranian efforts to suppress Internet
freedom, including actions of the United States to--
(i) work to promote expanded Internet access
for democracy activists in Iran;
(ii) add a public diplomacy page to the
United States' virtual embassy in Iran; and
(iii) leverage multilateral organizations
committed to Internet connectivity in Iran.
(3) An implementation plan for the United States strategy
described in paragraph (2).
(d) Form.--The report required under subsection (b) shall be
submitted in unclassified form to the greatest extent possible, but may
include a classified annex, if necessary.
(e) Appropriate Congressional Committees.--In this section, the term
``appropriate congressional committees'' means--
(1) the Committee on Foreign Affairs, the Committee on Armed
Services, the Committee on Financial Services, the Committee on
Ways and Means, and the Permanent Select Committee on
Intelligence of the House of Representatives; and
(2) the Committee on Foreign Relations, the Committee on
Armed Services, the Committee on Banking, Housing, and Urban
Affairs, the Committee on Finance, and the Permanent Select
Committee on Intelligence of the Senate.
SEC. 402. REPORT ON IRANIAN NUCLEAR AND ECONOMIC CAPABILITIES.
(a) In General.--Not later than 60 days after the date of the
enactment of this Act, the President shall submit to the appropriate
congressional committees a report on the following:
(1) An estimate of the timeline for Iranian capabilities to
develop nuclear weapons, including--
(A) an estimate of the period of time it would take
Iran to produce enough weapons-grade uranium for a
single implosion-type nuclear weapon, taking into
account all known relevant technical data;
(B) an estimate of the period of time it would take
Iran to produce sufficient separated plutonium for a
single nuclear weapon;
(C) a description of the assumptions underlying the
estimates referred to in subparagraphs (A) and (B), and
any information about developments that might alter or
otherwise affect those assumptions;
(D) an estimate of the date by which the periods of
time referred to in subparagraphs (A) and (B) will be
less than 45 days; and
(E) a description of any efforts by the United States
to increase the frequency of inspections by the
International Atomic Energy Agency of nuclear
facilities in Iran.
(2) An assessment of Iranian strategy and capabilities
relating to development of nuclear weapons, including--
(A) a summary and analysis of current nuclear weapons
capabilities;
(B) an estimate of the amount and sources of funding
expended by, and an analysis of procurement networks
utilized by, Iran to develop its nuclear weapons
capabilities;
(C) a summary of the capabilities of Iran's
unconventional weapons and Iran's ballistic missile
forces and Iran's cruise missile forces;
(D) a detailed analysis of the effectiveness of
Iran's unconventional weapons and Iran's ballistic
missile forces and Iran's cruise missile forces as
delivery systems for a nuclear device;
(E) a description of all efforts of Iran to design
and develop a nuclear weapon, including efforts to
design or fit warheads, and any other possible military
dimensions of the nuclear program of Iran; and
(F) an analysis of the procurement network, including
the amount and sources of funding expended by Iran on
programs to develop a nuclear weapons capability.
(3) Projected economic effects of international sanctions on
Iran, including--
(A) an estimate of the capital accounts, current
accounts, and amounts of foreign exchange reserves
(including access to foreign exchange reserves) of the
Government of Iran, and other leading indicators of the
status of the economy of Iran;
(B) an estimate of timelines with respect to
macroeconomic viability of Iran, including the time by
which the Government of Iran will exhaust its foreign
exchange reserves;
(C) an estimate of the date by which the reserves of
the Central Bank of Iran will be insufficient for the
Government of Iran to avoid a severe balance of
payments crisis that prevents it from maintaining a
functioning economy, including--
(i) the inflation rate, exchange rates,
unemployment rate, and budget deficits in Iran;
and
(ii) other leading macroeconomic indicators
used by the International Monetary Fund,
professional rating agencies, and other
credible sources to assess the economic health
of a country;
(D) a description of the assumptions underlying the
estimate referred to in paragraph (3) and an indication
of how changes in each of those assumptions could
affect the estimate;
(E) an assessment of the effect of sanctions imposed
with respect to Iran on moving forward the date
referred to in subparagraph (C); and
(F) a description of actions taken by the Government
of Iran to delay the date referred to in subparagraph
(C).
(b) Update.--The President shall submit to the appropriate
congressional committees an update of the report required by subsection
(a) every 60 days after the date of submission of the report that
includes any pertinent developments to Iranian nuclear or economic
capabilities.
(c) Form.--The report required under subsection (a) and the update
required under subsection (b) shall be submitted in unclassified form
to the greatest extent possible, but may include a classified annex, if
necessary.
(d) Definitions.--In this section:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Affairs, the Committee
on Armed Services, the Committee on Financial Services,
the Committee on Ways and Means, and the Permanent
Select Committee on Intelligence of the House of
Representatives; and
(B) the Committee on Foreign Relations, the Committee
on Armed Services, the Committee on Banking, Housing,
and Urban Affairs, the Committee on Finance, and the
Select Committee on Intelligence of the Senate.
(2) 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 energy from special nuclear material that is
greater than the amount of energy that would be released from
the detonation of one pound of trinitrotoluene (TNT).
SEC. 403. REPORT ON PLAUSIBILITY OF EXPANDING SANCTIONS ON IRANIAN OIL.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, the President shall submit to the appropriate
congressional committees a report assessing the following:
(1) Whether petroleum and petroleum products originating in
and exported from Iran are refined and sold outside of Iran.
(2) Whether products that contain Iranian-origin petroleum or
petroleum products as part of their contents are imported into
the United States and, if any such products are imported into
the United States, whether such importation violates the ban on
importation into the United States of Iranian-origin petroleum
or petroleum products.
(3) Whether it is feasible to ban the importation into the
United States of products described in paragraph (2),
regardless of whether the ban on importation into the United
States of Iranian-origin petroleum or petroleum products
applies to such products.
(b) Basis of Report.--The report required under subsection (a) may be
based on publicly-available information and classified information. The
information that is not classified information shall be made publically
available.
(c) Appropriate Congressional Committees.--In this section, the term
``appropriate congressional committees'' means--
(1) the Committee on Foreign Affairs, the Committee on
Financial Services, and the Committee on Ways and Means of the
House of Representatives; and
(2) the Committee on Foreign Relations, the Committee on
Banking, Housing, and Urban Affairs, and the Committee on
Finance of the Senate.
SEC. 404. GAO REPORT ON IRANIAN STRATEGY TO EVADE CURRENT SANCTIONS AND
OTHER MATTERS.
Not later than 90 days after the date of the enactment of this Act,
the Comptroller General of the United States shall submit to Congress a
report that--
(1) evaluates the strategy of the Government of Iran to evade
current economic and financial sanctions; and
(2) specifically evaluates the ability of Iran to
successfully diversify its economy beyond its energy sector,
thereby lessening the impact and effectiveness of economic and
financial sanctions.
SEC. 405. AUTHORITY TO CONSOLIDATE REPORTS REQUIRED UNDER IRAN
SANCTIONS LAWS.
(a) In General.--Any or all reports required to be submitted to
Congress under the provisions of law described in subsection (c) on or
after the date of the enactment of this Act may, notwithstanding the
deadline requirements for submission under such provisions of law, be
consolidated into a single report that is submitted to Congress on an
annual basis.
(b) Exception.--Subsection (a) shall not apply with respect to the
initial report of any report described in subsection (a).
(c) Provisions of Law Described.--The provisions of law referred to
in this section are the following:
(1) This Act and the amendments made by this Act.
(2) The Iran Freedom and Counter-Proliferation Act of 2012
(22 U.S.C. 8801 et seq.).
(3) The Iran Threat Reduction and Syria Human Rights Act of
2012 (22 U.S.C. 8701 et seq.).
(4) The Comprehensive Iran Sanctions, Accountability, and
Divestment Act of 2010 (22 U.S.C. 8501 et seq.).
SEC. 406. AMENDMENTS TO DEFINITIONS UNDER IRAN SANCTIONS ACT OF 1996
AND IRAN THREAT REDUCTION AND SYRIA HUMAN RIGHTS
ACT OF 2012.
(a) Iran Sanctions Act of 1996.--Section 14(4)(B) of the Iran
Sanctions Act of 1996 (Public Law 104-172; 50 U.S.C. 1701 note) is
amended by striking ``may include, in the discretion of the President''
and inserting ``includes''.
(b) Iran Threat Reduction and Syria Human Rights Act of 2012.--
Section 211 of the Iran Threat Reduction and Syria Human Rights Act of
2012 (22 U.S.C. 8721) is amended by adding at the end the following new
subsection:
``(f) Definition.--In this section, the term `appropriate
congressional committees' includes the Committee on Transportation and
Infrastructure of the House of Representatives and the Committee on
Commerce, Science, and Transportation of the Senate.''.
SEC. 407. IMPLEMENTATION; PENALTIES.
(a) Implementation.--The President may exercise all authorities
provided under sections 203 and 205 of the International Emergency
Economic Powers Act (50 U.S.C. 1702 and 1704) to carry out this Act and
the amendments made by this Act.
(b) Penalties.--The penalties provided for in subsections (b) and (c)
of section 206 of the International Emergency Economic Powers Act (50
U.S.C. 1705) shall apply to a person that violates, attempts to
violate, conspires to violate, or causes a violation of this Act or any
amendment made by this Act or regulations prescribed under this Act to
the same extent that such penalties apply to a person that commits an
unlawful act described in section 206(a) of the International Emergency
Economic Powers Act (50 U.S.C. 1705(a)).
SEC. 408. SEVERABILITY.
(a) In General.--If any provision of this Act, or the application of
such provision to any person or circumstance, is found to be
unconstitutional, the remainder of this Act, or the application of that
provision to other persons or circumstances, shall not be affected.
(b) Effective Date Under Section 214.--If subsection (d) of section
214 is found to be unconstitutional in accordance with subsection (a),
the amendments made by such section 214 take effect on the date of the
enactment of this Act and apply with respect to transactions entered
into on or after such date of enactment.
Summary and Purpose
H.R. 850, the Nuclear Iran Prevention Act of 2013 (NIPA),
amends the Iran Sanctions Act of 1996, the Comprehensive Iran
Sanctions, Accountability and Divestiture Act of 2010, the Iran
Threat Reduction Act of 2012, and relevant components of the
National Defense Authorization Act for Fiscal Year 2012 and the
National Defense Authorization Act for Fiscal Year 2013 to
provide additional sanctions on Iran's energy, financial and
related sectors. This legislation is a response to the evolving
and urgent threat that Iran's current policies present to the
national security interests of the United States and our
allies.
The purpose of the legislation is to compel the Government
of Iran to verifiably suspend, and ultimately dismantle, its
weapons-applicable nuclear program, including, but not limited
to, the cessation of all uranium enrichment and plutonium-
related activities. Through the application of broad-based
sanctions, it is also intended to deprive Iran of the resources
it requires to develop other unconventional weapons and
ballistic missiles, acquire destabilizing conventional weapons,
support terrorism within the region and across the globe, and
engage in the systematic suppression of the people of Iran.
Background and Need for the Legislation
Iran poses a significant and rapidly increasing threat to
the United States and our allies in the Middle East and
elsewhere. Preventing Iran from acquiring a nuclear weapons
capability, and ending its support for international terrorism
are vital U.S. national security interests. This legislation
restricts economic activity that supports the Government of
Iran's pursuit of these activities by: Broadening economic
sanctions; further targeting human rights violators; and
increasing oversight of the implementation and enforcement of
current sanctions--thereby pressuring the Iranian regime to
cease its nuclear program.
Legislative Background
Iran's economy, and Iran's ability to influence events, is
heavily dependent on the revenue derived from crude oil,
natural gas, and other energy-related exports. However, the
Government of Iran has increasingly come to control entire
segments of the Iranian economy, including considerable
domestic and international business interests, and as a result,
has gained access to new streams of revenue. In response, the
focus of congressional action has evolved from targeted to more
broadly-based sanctions.
NIPA is the latest component of a longstanding legislative
effort to tighten sanctions on foreign companies doing
significant business with Iran, in order to compel the
Government of Iran to verifiably cease and dismantle its
efforts to develop a nuclear weapons capability, as well as
halt its other dangerous activities and policies. This goal was
first embodied in the Iran and Libya Sanctions Act of 1996,
P.L. 104-172 (ILSA, now referred to as the Iran Sanctions Act,
or ISA), which was enacted in 1996 for a five-year period and
has been extended three times--in 2001, 2006 and 2012--for
additional five-year periods. On August 3, 2001, President
George W. Bush signed into law the ILSA Extension Act of 2001
(P.L. 107-24). In September 2006, to further strengthen
sanctions targeting foreign investment in Iran's energy sector,
Congress passed the Iran Freedom Support Act (IFSA), a bill
subsequently signed into law (P.L. 109-293) by President George
W. Bush. Among other provisions, IFSA strengthened sanctions
under ISA, including by raising the waiver threshold for
investment in the energy sector, enlarging the scope of those
who might be subject to sanctions.
In 2009, the House passed H.R. 2194, the Iran Refined
Petroleum Sanctions Act, which later became the Comprehensive
Iran Sanctions, Accountability, and Divestment Act of 2010
(P.L. 111-195) (CISADA). Among other critical provisions,
CISADA mandated investigations into possible ISA violations;
created third-party sanctions for financial institutions
facilitating transactions supporting the nuclear weapons
program or terrorism; provided for robust financial sector,
refined petroleum-focused, and human rights abuser sanctions;
provided a legal framework by which U.S. states, local
governments, and certain other investors can divest their
portfolios of foreign companies involved in Iran's energy
sector; and established a mechanism to address concerns about
diversion of sensitive technologies to Iran through other
countries.
Section 1245 of the FY 2012 National Defense Authorization
Act increased efforts to sanction Iran by specifically
targeting the Central Bank of Iran. This provision of law
prohibited a foreign bank from opening an account in the United
States--or imposed strict limitations on existing U.S.
accounts--if that bank processed payments through Iran's
Central Bank. It contained an exemption for Central Bank
transactions if a country significantly reduced its oil
purchases. Within this context, foreign banks could be granted
an exemption from sanctions (for any transactions with the
Central Bank, not just for oil) if the President certified that
the parent country of the bank had significantly reduced its
purchases of oil from Iran. That determination is to be
reviewed every 180 days. For countries whose banks receive an
exemption, the 180 day time frame begins from the time that
parent country last received an exemption.
In the 112th Congress, the Iran Threat Reduction and Syria
Human Rights Act of 2012 (P.L. 112-158) applied sanctions to
the shipping of Iranian crude oil, and enhanced human rights-
related provisions of previous Iran-related laws. A provision
of the FY2013 National Defense Authorization Act (P.L. 112-239)
sanctioned transactions with any entity in several key sectors
of Iran's economy, and imposed a blanket prohibition on the
transfer of precious metals to Iran.
U.S. bilateral sanctions, combined with other national and
multilateral sanctions, have adversely impacted Iran's economy,
and particularly its exports of crude oil, which comprise about
70 percent of the Iranian government's revenues. Iranian oil
exports have now declined to about 1.25 million barrels per
day--half of the 2.5 million barrels per day that Iran exported
in 2011. This drop has been attributed to a European Union
embargo on purchases of Iranian crude oil, which took full
effect on July 1, 2012, and decisions by several other Iranian
oil customers to substantially reduce purchases of Iranian oil.
The loss of hard currency revenues from oil, coupled with the
cut-off of Iran from the international banking system, has
caused a collapse in the value of Iran's currency. Within this
context, it has been reported that the Central Bank of Iran is
attempting to utilize its remaining foreign exchange reserves
to prevent a further deterioration in Iran's balance of
payments from turning into a full-blown economic and financial
crisis. United States sanctions are limiting Iran's ability to
earn additional hard currency, including through the
strengthening and refining of sanctions against the Central
Bank.
Iran's Nuclear Program
Notwithstanding the costs imposed on Iran by the sanctions
to date, Tehran continues to make rapid progress on its nuclear
weapons program. The International Atomic Energy Agency's
(IAEA) report on the Iranian nuclear program, issued in
February 2013, confirms that the development of Iran's program
has continued apace. Iran has two known uranium enrichment
facilities--one at Natanz and the other at Fordow. At the
Natanz Fuel Enrichment Plant, Iran has continued to install
large numbers of IR-1 and the more advanced IR-2 centrifuges,
as confirmed by both the February and May 2013 IAEA reports.
The potential output of the IR-2m is estimated to be 2 to 5
times that of the IR-1, but their actual capabilities are not
known due to Iranian modifications of the original European
design, manufacturing limitations, and the IAEA's lack of
access to them. In early March 2013, the head of Iran's Atomic
Energy Organization announced that Iran would begin mass
producing these advanced centrifuges and that 3000 would be
available in ``the near future.'' Iran's ability to build,
install, and operate these complex machines is unknown.
The Fordow uranium enrichment facility is located deep
below a mountain near the city of Qom. This location is
presumably designed to protect the plant from a military
strike. The IAEA's February 2013 report stated that Iran has
installed approximately 2,700 IR-1 centrifuges at Fordow, which
is close to its design capacity of 3000. The nearly 700
centrifuges in operation are enriching uranium to the 20%
level. Iran began construction of the facility in 2006, and
only disclosed its existence after U.S. and other Western
intelligence services submitted evidence of it to the IAEA in
2009. By constructing the plant in secret, Iran violated its
IAEA safeguards agreement, which requires it to declare all
nuclear facilities, including plans to construct new ones.
Iran has also continued construction work on its heavy-
water reactor at Arak and has told the IAEA that it will begin
operation in early 2014. The nearby heavy-water production
plant is already in operation. Iran claims that the reactor is
intended to produce isotopes for medical use, but the reactor's
spent uranium fuel will contain plutonium that can be separated
out through reprocessing and used for nuclear weapons. Iran
refuses to provide the IAEA with information about the reactor
or allow its inspectors access. The UN Security Council has
demanded that Iran stop construction of the reactor, but Iran
has not complied.
Iran continues to stonewall the IAEA regarding its work on
a nuclear explosive device that was first made public in the
IAEA's November 2011 report. Iran continues to deny the IAEA
access to the Parchin military site, where it is believed to
have conducted high-explosive tests regarding nuclear weapons.
Since the site was first reported, Iran has demolished or
significantly altered buildings there and removed large
quantities of soil, apparently to eliminate all traces of
clandestine work.
While public estimates with respect to Iran's ability to
acquire a nuclear weapons capability, breakout nuclear weapons
capabilities or ``undetectable breakout'' capabilities vary, it
is clear that the Iranians are making rapid progress towards
acquiring such capabilities.
Iran's International Activities
Iran's foreign policy objective continues to be to overturn
the current power structure in the Middle East, which Iran
believes favors the United States, Israel, and their
``collaborators,'' including Egypt, Jordan, and the Gulf
states. On March 5, 2013, the outgoing commander of U.S.
Central Command, Gen. James Mattis, testified that ``Iran
remains the single most significant regional threat to
stability and prosperity.'' Iran actively supports a number of
terrorist organizations, and was placed on the U.S. list of
state sponsors of terrorism in January 1984. Iran's powerful
militia, the Islamic Revolutionary Guards Force (``IRGC''),
pursues a destructive foreign policy agenda through its Quds
Force. The Quds Force consists of approximately 10,000-15,000
personnel who provide advice, support, and arrange weapons
deliveries to pro-Iranian factions in Syria, Lebanon, Iraq,
Persian Gulf states, the West Bank and Gaza, Afghanistan, and
Central Asia. Chief among these parties is Hezbollah, Iran's
Lebanon-based ally.
In 2012, there were several Iranian-sponsored attempts to
attack Israeli diplomats and citizens in regions near and far.
Bulgarian officials have indicated that Hezbollah was
responsible for a July 19, 2012, terrorist bombing in Burgas,
Bulgaria that killed five Israeli tourists and one Bulgarian.
India reportedly has concluded that the Quds Force was
responsible for wounding the wife of an Israeli diplomat in an
attack in Delhi in February 2012. Other alleged Iranian plots
against Israeli and other targets were reported in 2012 in
Thailand, Georgia, Azerbaijan, Cyprus, and Kenya. According to
the U.S. Department of Justice, Iran plotted to assassinate a
Saudi Diplomat in Washington, DC in 2011. The State
Department's Country Reports on Terrorism 2012 stated that
``Iran increased its terrorist-related activity, including
attacks or attempted attacks in India, Thailand, Georgia, and
Kenya. Iran provided financial, material, and logistical
support for terrorist and militant groups in the Middle East
and Central Asia.''
Lebanese Hezbollah is Iran's chief protege movement in the
region. Iran's political, financial, and military aid to
Hezbollah has helped it become a major force in Lebanon's
politics. Iran is now facilitating Hezbollah's intervention in
Syria against the Syrian armed opposition with significant
financial and logistical assistance, a fact openly admitted by
Hezbollah Secretary General Hassan Nasrallah on April 30, 2013.
Iran also continues to provide substantial material support to
the Syrian regime of President Bashar al-Assad, including
funds, weapons, and fighters. Syria remains Iran's closest Arab
ally, and the main transit point for Iranian weapons shipments
to Hezbollah.
Iran was Hezbollah's major arms supplier during the
Lebanese militia's July-August 2006 war with Israel. Since that
conflict, Iran has resupplied Hezbollah with at least 25,000
new rockets, and press reports in early 2010 indicated that
Hezbollah maintains a wide network of arms and missile caches
around Lebanon.
Iran exercises influence in Iraq through Shiite factions
and militias, particularly that of Shiite cleric Moqtada Al
Sadr. Iraq reportedly has allowed Iran to overfly Iraqi
airspace with cargo flights to supply the Syrian military in
its battle against armed dissidents. In addition, Yemeni
leaders have long claimed that Iran has tried to destabilize
Yemen. The U.N. Panel of Experts that is monitoring Iran's
compliance with sanctions reportedly has found that Yemen-based
militants are receiving arms from Iran.
Negotiations
Led by the five Permanent Members of the U.N. Security
Council plus Germany (P5+1), multiple rounds of multilateral
talks with Iran have yielded no breakthroughs. However, three
rounds of talks in 2012 did explore a potential compromise,
under which Iran might cease enriching uranium to 20% purity (a
level not technically far from weapons grade) in exchange for
modest sanctions relief.
During the Baghdad talks in May 2012, the P5+1 reportedly
proposed that Iran halt enrichment to the 20% level; allow
removal from Iran of the existing stockpile of 20% enriched
uranium; eventually close the Fordow facility; accept a
comprehensive verification regime to ensure that Iran fulfills
any commitments made; and clear up reputed past efforts to
design a nuclear explosive device, including allowing
inspections of Parchin and other facilities.
In return, the P5+1 would reportedly allow Iran, at least
in the interim, to enrich uranium to the 3.5%-5% level; offer
Iran a guaranteed supply of medical isotopes that it says it
needs, and technical assistance to ensure the safety of its
civilian nuclear facilities; and offer Iran spare parts for its
civilian passenger aircraft. However, the P5+1 reportedly did
not offer to meet Iran's demand to recognize Iran's ``right''
to enrich uranium, or to halt the European Union embargo on
Iran's oil.
Further high-level talks took place on February 26-27, 2013
and April 5-6, 2013, in Almaty, Kazakhstan. The P5+1 reportedly
offered Iran additional concessions, including the ability to
trade in gold, in exchange for reciprocal concessions on Iran's
nuclear program, but no breakthroughs were achieved. On May 15,
2013, EU foreign policy chief Catherine Ashton and Iran's chief
nuclear negotiator Saeed Jalilli had a further meeting to
assess the prospects for a further round of talks, but once
again, the talks were unproductive.
The Committee is concerned that Iran is exploiting the
negotiations to continue their efforts to acquire a nuclear
weapons capability, similar to the course successfully pursued
by North Korea. While we continue to support a diplomatic
resolution of the Iranian nuclear situation, it is clear that
negotiations have not yet achieved the desired result. As a
result, the Committee believes we must impose additional,
tougher sanctions to compel Iran to cease and verifiably
dismantle its nuclear weapons program, and to deny Iran the
resources required to pursue its destructive policies.
The Nuclear Iran Prevention Act
Among other provisions, H.R. 850 strengthens existing
sanctions by compelling countries that are currently purchasing
crude oil from Iran to reduce their combined purchases of
Iranian crude oil by a total of 1,000,000 barrels per day
within a year. By taking 1,000,000 barrels per day of Iranian
crude oil off of the market within a year (with safeguards to
ensure that international oil markets can withstand such a
reduction), the Iranian regime would continue to lose the long-
term funding that it requires to pay for its nuclear program,
ballistic missiles, and sponsorship of terrorism.
The legislation also penalizes foreign persons who engage
in significant commercial trade with Iran. This would use the
same model--targeting transactions through the Central Bank or
a designated Iranian bank--that has successfully curtailed
Iran's oil trade over the past year.
In addition, NIPA expands the list of sectors of the
Iranian economy that are effectively blacklisted, and provides
the President the tools to add additional sectors of strategic
importance to the Government of Iran. It works to limit Iran's
access to overseas foreign currency reserves and imposes
additional shipping sanctions to limit the ability of the
regime to engage in international commerce.
The bill also takes steps to protect the human rights of
the Iranian people by applying the financial sector sanctions
in existing law to transactions involving:
human rights violators;
persons transferring technologies to Iran
that are likely to be used to commit human rights
abuses;
persons who engage in censorship or related
activities against citizens of Iran, and corrupt
officials that confiscate humanitarian and other goods
for their own benefit; and
persons exporting sensitive technology to
Iran.
Finally, H.R. 850 requires that the Administration produce
annually a national strategy on Iran highlighting Iranian
capabilities and key vulnerabilities that the United States may
exploit, providing the United States Government a roadmap as to
how to effectively address the Iranian threat.
Hearings
During the present Congress, the Committee has continued
its active oversight regarding Iran, including multiple
hearings related to the content of H.R. 850, such as:
May 15, 2013, full Committee hearing on ``Preventing
a Nuclear Iran'' (Hon. Wendy R. Sherman, Under
Secretary for Political Affairs, U.S. Department of
State; Hon. David S. Cohen, Under Secretary for
Terrorism and Financial Intelligence, U.S. Department
of the Treasury);
April 24, 2013, full Committee hearing on ``Export
Control Reform: The Agenda Ahead'' (Mr. Thomas Kelly,
Acting Assistant Secretary, Bureau of Political-
Military Affairs, U.S. Department of State; Hon. Kevin
J. Wolf, Assistant Secretary of Commerce for Export
Administration, Bureau of Industry and Security, U.S.
Department of Commerce; Mr. James A. Hursch, Director,
Defense Technology Security Administration, U.S.
Department of Defense); and
April 11, 2013, joint subcommittee hearing (Middle
East and North Africa; Terrorism, Nonproliferation, and
Trade; Asia and the Pacific) on ``Breaking the Iran,
North Korea, and Syria Nexus'' (The Honorable R. James
Woolsey, Chairman, Foundation for Defense of
Democracies (former Director of the Central
Intelligence Agency); Mr. Henry D. Sokolski, Executive
Director, Nonproliferation Policy Education Center
(former Deputy for Nonproliferation Policy, U.S.
Department of Defense); Mr. David Albright, Founder and
President, Institute for Science and International
Security; Ray Takeyh, Ph.D., Senior Fellow for Middle
Eastern Studies, Council on Foreign Relations).
Committee Consideration
On May 22, 2013, the Foreign Affairs Committee marked up
the bill, H.R. 850, pursuant to notice, in open session. An
amendment in the nature of a substitute, offered by the
Chairman, and 27 other amendments (21 of which were considered
en bloc) were agreed to in separate voice votes. The bill, as
amended, was agreed to by voice vote.
Committee Oversight Findings
In compliance with clause 3(c)(1) of House Rule XIII, the
Committee reports that the findings and recommendations of the
Committee, based on oversight activities under clause 2(b)(1)
of House Rule X, are incorporated in the descriptive portions
of this report, particularly the ``Background and Purpose'' and
``Section-by-Section Analysis'' sections.
New Budget Authority, Tax Expenditures, and Federal Mandates
In compliance with clause 3(c)(2) of House Rule XIII and
the Unfunded Mandates Reform Act (P.L. 104-4), the Committee
adopts as its own the estimate of new budget authority,
entitlement authority, tax expenditures or revenues, and
Federal mandates contained in the cost estimate prepared by the
Director of the Congressional Budget Office pursuant to section
402 of the Congressional Budget Act of 1974.
Congressional Budget Office Cost Estimate
U.S. Congress,
Congressional Budget Office,
Washington, DC, June 28, 2013.
Hon. Edward R. Royce, Chairman,
Committee on Foreign Affairs,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 850, the Nuclear
Iran Prevention Act of 2013.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Sunita
D'Monte, who can be reached at 226-2840.
Sincerely,
Douglas W. Elmendorf.
Enclosure
cc:
Honorable Eliot L. Engel
Ranking Member
H.R. 850--Nuclear Iran Prevention Act of 2013.
As ordered reported by the House Committee on Foreign
Affairs on May 22, 2013.
H.R. 850 would amend and expand existing sanctions against
Iran. CBO estimates that implementing the bill would have
discretionary costs of about $22 million over the 2014-2018
period, assuming appropriation of the estimated amounts. Pay-
as-you-go procedures apply to this legislation because it would
affect direct spending and revenues; however, CBO estimates
that those effects would not be significant.
The estimated budgetary impact of H.R. 850 is shown in the
following table. The costs of this legislation fall primarily
within budget functions 150 (international affairs), 400
(transportation), and 800 (general government).
By Fiscal Year, in Millions of Dollars
----------------------------------------------------------------------------------------------------------------
2014 2015 2016 2017 2018 2014-2018
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level 5 5 5 5 5 25
Estimated Outlays 3 4 5 5 5 22
----------------------------------------------------------------------------------------------------------------
Several provisions of H.R. 850 would increase
administrative costs of the Department of State, the Department
of the Treasury, and the Department of Transportation. CBO's
estimate of the bill's costs is based on information from those
agencies.
Sanctions required under H.R. 850 would probably increase
the number of people who would be denied a visa by the
Secretary of State. Most visa fees are retained by the
department and spent without further appropriation, but some
fees are deposited in the Treasury as revenues. CBO estimates
that implementing those sanction provisions would affect very
few people and, thus, have an insignificant budgetary effect.
Because the bill would expand the types of prohibited
activities involving Iran that are subject to civil and
criminal penalties under current law, it could increase
revenues and direct spending from the collection of those
penalties; however, CBO estimates that the net budgetary effect
of any additional penalties would be negligible for each year.
By expanding existing prohibitions on transactions with
persons or entities associated with the government of Iran, and
increasing the number of entities responsible for complying
with those prohibitions, the bill would impose both
intergovernmental and private-sector mandates as defined in the
Unfunded Mandates Reform Act (UMRA). The bill would modify
certain existing financial transactions, prohibit the
importation of goods or services from sanctioned entities, and
ban activities that may aid in Iran's mining or milling of
uranium.
Individuals and entities engaged in ongoing transactions
with potentially sanctioned entities could be required to
terminate such transactions based on new requirements outlined
in the bill. Because the number of private and public entities
engaged in those transactions is probably very small, CBO
expects that the estimated costs of the intergovernmental and
private-sector mandates in H.R. 850 would fall below the annual
thresholds established in UMRA ($75 million for
intergovernmental mandates and $150 million for private-sector
mandates in 2013, adjusted annually for inflation).
The CBO staff contacts for this estimate are Sunita
D'Monte, Pamela Greene, Matthew Pickford, and Sarah Puro (for
federal costs), J'nell Blanco (for the intergovernmental
impact), and Marin Burnett (for the private-sector impact).
This estimate was approved by Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
Directed Rule Making
Pursuant to clause 3(c) of House Rule XIII, as modified by
section 3(k) of H.Res. 5 during the 113th Congress, the
Committee notes that H.R. 850 contains one provision (section
101(c), as reported) requiring that the Secretary of the
Treasury prescribe regulations to carry out the amendments to
existing financial institution sanctions made by section 101(a)
of the bill.
Non-Duplication of Federal Programs
Pursuant to clause 3(c) of House Rule XIII, as modified by
section 3(j)(2) of H.Res. 5 during the 113th Congress, the
Committee states that H.R. 850 does not establish or
reauthorize a program of the Federal Government known to be
duplicative of another Federal Program, and does not include
any program listed in any report from the Government
Accountability Office pursuant to section 21 of Public Law 111-
139, or any program related to those listed in the most recent
Catalog of Federal Domestic Assistance.
Performance Goals and Objectives
The Act is intended to deprive Iran of the resources it
requires to develop a nuclear weapons capability and produce
nuclear weapons; develop other unconventional weapons and
ballistic missiles; acquire destabilizing conventional weapons;
support terrorism within the region and across the globe; and
engage in the systematic suppression of the people of Iran. The
diplomatic objective is to reach a negotiated settlement in
which Iran agrees to verifiably dismantle its nuclear weapons
program. Performance goals associated with these objectives
include, but are not limited to the following:
A verifiable decrease in Iran's ability to
fund its uranium enrichment, plutonium-related, and
other activities related to Iran's efforts to acquire a
nuclear weapons capability.
The cessation and verifiable dismantlement of
programs associated with Iran's efforts to develop a
nuclear weapons capability.
A verifiable decrease in Iran's ability to
fund its unconventional weapons programs, ballistic
missiles and related technology programs, acquisition
of destabilizing types and amounts of conventional
weapons, and support for international terrorism.
A verifiable cessation in Iran's
unconventional weapons programs, ballistic missiles and
related technology programs, and support for
international terrorism.
Congressional Accountability Act
H.R. 850 does not apply to the Legislative Branch.
New Advisory Committees
H.R. 850 does not establish or authorize any new advisory
committees.
Earmark Identification
H.R. 850 contains no congressional earmarks, limited tax
benefits, or limited tariff benefits as defined in clauses
9(e), 9(f), and 9(g) of House Rule XXI.
Letters of Jurisdiction
----------
Section-by-Section Analysis
Section 1. Short Title and Table of Contents. The short
title of this Act is the Nuclear Iran Prevention Act of 2013.
Section 2. Findings and Statement of Policy.
TITLE I--HUMAN RIGHTS AND TERRORISM SANCTIONS.
Section 101. Mandatory sanctions with respect to financial
institutions that engage in certain transactions on behalf of
persons involved in human rights abuses or that export
sensitive technology to Iran. Current law sanctions foreign
financial institutions that conduct transactions that aid
Iran's proliferation or support for terrorism. This provision
adds transactions for human rights abusers to the list of
sanctionable activities, to include the original designation
for human rights violators, those persons involved in the
transfer of goods and services to the Government of Iran likely
to be used to commit human rights abuses, those who engage in
censorship and related activities, and those engaged in the
diversion of goods intended for the people of Iran. It also
applies CISADA financial sanctions to persons sanctioned for
exporting sensitive technology to Iran.
Section 102. Prevention of diversion of certain goods,
services and technologies to Iran. This provision broadens the
evidentiary standard for the criteria applied to a person that
provides goods, services and technology to Iran that may aid
its nuclear weapons program, its ballistic missile and
unconventional weapons development programs, procurement of
advanced conventional weapons, and support for international
terrorism. It also expands the scope of sanctionable transfers
and authorizes the President to impose IEEPA sanctions against
violators. Though this provision, the Committee intends to
strengthen the underlying provision regarding countries of
diversion concern, which the Administration has not fully
implemented.
Section 103. Designation of Iran's Revolutionary Guard
Corps as foreign terrorist organization. Section 101 requires
the Secretary of State to make a determination as to whether
the IRGC is a foreign terrorist organization. Assuming a
positive determination, the President imposes additional
sanctions. The IRGC is not only involved in Iran's WMD programs
but it is also the key instrument through which the regime has
suppressed the pro-democracy movement. Recent reports of IRGC
involvement in terrorist operations from Southeast Asia to the
Middle East underscore the threat. The bill as reported
includes language requiring the Administration to apply the
sanctions under the Immigration and Nationality Act to the IRGC
Quds Force. While the Committee recognizes the expansive nature
of current sanctions imposed against the IRGC, given the role
that the totality of the IRGC command structure plays in
ordering, facilitating or otherwise supporting terrorist
attacks against the United States and our allies, the Committee
wants to ensure that the IRGC is held to account.
Section 104. Imposition of sanctions on certain persons
responsible for or complicit in human rights abuses, engaging
in censorship, or engaging in the diversion of goods intended
for the people of Iran. This section expands and updates
current-law regarding Iranian human rights abusers. First, it
expands the list of reportable offenses from human rights
abuses to censorship and related activities, and the diversion
of goods destined for the people of Iran by the government.
Second, it expands the list of persons that the Administration
must report on. The intent is to encourage the Administration
to designate high-ranking Iranian government officials for all
associated violations. Currently, the report is limited to
human rights abusers only and a very narrow sample of the
Iranian government.
Section 105. Sense of Congress on elections in Iran. This
provision states that it is the sense of Congress that the
Iranian people are denied by their government of free, fair and
transparent elections. It also supports allowing independent
international and domestic election observers into Iran for
their elections. The Committee believes that the elections in
Iran, rather than being free and fair, have been utilized by
the governing elite to cement their rule over the Iranian
people.
Section 106. Sense of Congress on designation of a Special
Coordinator for advancing human rights and political
participation for women in Iran. This provision supports the
appointment of a Special Coordinator within the Bureau of Near
Eastern Affairs to advance human rights and political
participation for women, as well as to prepare evidence and
information to be used in identifying Iranian officials for
designation as human rights abusers.
TITLE II--ECONOMIC AND FINANCIAL SANCTIONS
Subtitle A--Amendments to Iran Sanctions Act of 1996
Section 201. Imposition of sanctions relating to
transportation of crude oil from Iran and certain imports and
exports to and from Iran. This section amends prohibitions on
shipping sanctions with the Iran Sanctions Act to prohibit the
transfer and retransfer of vessels to the Government of Iran
for the purposes of crude oil transportation. Thus, it further
restricts the ability of the Government of Iran to acquire
ships for its sanctioned fleets. This provision builds upon the
sanctions in Sec. 208 in rendering sanctionable ship-to-ship
transfers of crude oil transported from Iran, and knowingly
transporting of goods that are subject to U.S. sanctions law.
Section 202. Transfer to Iran of goods, services, or
technology that would materially contribute to Iran's ability
to mine or mill uranium. This provision adds the transfer of
goods, services and technology that can be used for uranium
mining and milling to the list of activities sanctionable under
Section 5(b)--mandatory WMD sanctions--of the Iran Sanctions
Act. Iran is believed to have significant reserves of uranium
in different areas of the country, and this specific provision
denies them the wherewithal to domestically develop those
deposits for use in their nuclear program.
Section 203. Repeal of waiver of sanctions relating to
development of weapons of mass destruction or other military
capabilities. This provision strikes the waiver authority in
Section 9(c) of the Iran Sanction Act, which applies to
sanctions against persons who aid Iran's WMD program under
subsection 5(b) of the Iran Sanctions Act. The Administration
has yet to apply sanctions under this subsection, despite the
fact that it is not discretionary, and has been law since 2006.
Subtitle B--Amendments to Comprehensive Iran Sanctions, Accountability,
and Divestment Act of 2010 and Iran Threat Reduction and Syria
Human Rights Act of 2012
Section 211. Modifications to prohibition on procurement
contracts with persons that export sensitive technology to
Iran. This provision amends Sec. 106 of CISADA, which sanctions
persons that export sensitive technology to Iran. Under current
law, the only sanction applicable is a procurement sanction.
Sec. 101 of this Act imposes financial sanctions against such a
person, and this provision applies the range of sanctions under
the Iran Sanctions Act to such a person. Additionally, this
section broadens the scope of the applicability to persons
owned or controlled by a person that provides such technology.
Section 212. Authority of State and local governments to
avoid exposure to sanctioned persons and sectors. This
provision builds on state-based divestment campaigns. It
includes a Sense of Congress to support state efforts to divest
assets, prohibit licenses, and impose transparency and
disclosure requirements. It brings state efforts in line with
Federal efforts to divest from additional designated sectors.
It also provides states and local governments Federal
protection for prohibiting business licenses for such entities.
Section 213. Sense of Congress regarding the European
Central Bank. Through financial sanctions, the United States
has blocked Iran from readily accessing U.S. dollars.
Similarly, European sanctions are designed in part to restrict
Iran's access to the euro. However, there are concerns that
legal challenges in Europe to its current sanctions regime may
change that. Others point to the ability of Iran to use
overseas financial institutions to access foreign currency
reserves and convert them into euros as a loophole that should
be addressed. In response, this provision calls on the
Administration to work closely with our European allies to work
toward ceasing euro-denominated transactions, thereby denying
the Iranian regime additional hard currency.
Section 214. Imposition of sanctions with respect to
certain transactions in foreign currencies. This section seeks
to prohibit conversion of foreign currency and repatriation of
accounts held by the Government of Iran outside of the accounts
authorized in current law that allow for the licit trade of
Iranian crude oil. For example, if the Iranian government held
an account in euros or another convertible currency in a
Chinese bank, this section would crack down on the Government
of Iran's ability to convert that account from a convertible
currency to a locally-denominated currency through the
respective central bank's clearing mechanisms. The objective is
to further enable the Administration to render Iran's foreign
exchange reserves overseas inaccessible.
Section 215. Sanctions with respect to certain transactions
with Iran. This provision is modeled on the current sanctions
against the Central Bank of Iran in Sec. 1245 of the FY12 NDAA.
It authorizes the President (pursuant to IEEPA) to sanction
foreign persons conducting non-oil, international trade with
Iran through the Central Bank of Iran, or other designated
Iranian financial institutions, unless the host country's
overall level of non-oil trade with Iran is significantly
reducing over succeeding 180 day periods.
Subtitle C--Other matters
Section 221. Imposition of sanctions with respect to the
Central Bank of Iran and other Iranian financial institutions.
This provision expands and tightens the current sanctions
against the Central Bank of Iran for oil purchases (Sec. 1245
of the FY12 NDAA). It requires that one year after enactment,
that the remaining countries purchasing Iranian oil must have
reduced their purchases by 1 million barrels per day in
aggregate or risk losing their ability to obtain ``significant
reduction'' exemptions'' to allow them to continue to purchase
Iranian oil. The requirement is predicated on a Presidential
finding that there is sufficient supply in the world energy
markets to allow for such a reduction. The section also amends
current law to ensure that third party transfers of Iranian
crude oil are covered when the State Department is considering
their ``significant reduction'' exemption. Finally, it amends
the definition and standard for ``significant reductions'' to
include both ``price and volume,'' and links the definition of
``significant reduction'' to the decrease of 1 million barrels
per day in the interim. To date, every importer of Iranian oil
has received an exemption from this sanction, a trend
concerning to the Committee given the wide fluctuation in terms
of both volume and price that has allowed countries to qualify
for a ``significant reduction.''
Section 222. Imposition of sanctions with respect to ports,
special economic zones, free economic zones, and strategic
sectors of Iran. This section would expand the sector-based
framework for the blacklisting of entire portions of the
Iranian economy as adopted in the FY13 NDAA. These include the
automotive and mining sectors of Iran, in addition to the
construction and engineering sectors of the economy that are in
anyway involved in those sectors. Additionally, it adds
interaction with inland ports such as free economic zones and
special economic zones to the list of prohibited activities.
Finally, it would also give the Administration the ability to
add additional sectors that the President deems are of
``strategic importance.'' Combined, this is a critical step in
targeting sectors of the Iranian economy that either support
the Iranian elites or relevant to their ongoing efforts to
acquire a nuclear weapons capability.
Section 223. Report on determinations not to impose
sanctions on persons who allegedly sell, supply, or transfer
precious metals to or from Iran. This section amends Sec. 1245
of the FY13 NDAA requiring the President to regularly report on
those persons that have sold, supplied or transferred precious
metals, directly or indirectly, to or from Iran, but have not
been sanctioned under this section, and the reasoning for that
determination.
Section 224. Imposition of sanctions with respect to
foreign financial institutions that facilitate financial
transactions on behalf of persons owned or controlled by
specially designated nationals. This provision strengthens the
FY13 NDAA to require the President to designate all entities
owned or controlled by Specially Designated Nationals as such
and requiring the President to apply sanctions accordingly. The
Iranians have tried to hide government-related assets through
``privatizing'' industries, retaining a controlling stake. This
would expand the ability of sanctions to target the economic
assets of regime actors. It is also the opinion of the
Committee that the President should make a determination under
current law as to whether non-designated bonyads and other
domestic and foreign investment authorities of Iran should be
designated.
Section 225. Repeal of exemptions under sanctions
provisions of National Defense Authorization Act for Fiscal
Year 2013. During the FY13 NDAA legislative process, a
procedural issue led to the exclusion of the ``importation of
goods'' as an applicable sanction with respect to the most
important aspects of that sanctions effort. As a result, the
FY13 NDAA sanctions have been weakened by this exclusion.
Therefore, this provision seeks to correct that anomaly.
Section 226. Termination of government contracts with
persons who sell goods, services, or technology to, or conduct
any other transaction with Iran. This section requires the
modification to the Federal Acquisition Regulation (FAR) to
prohibit any sanctionable activity--expanding it with respect
to the current prohibitions in current law. It specifies that
debarment or suspension from eligibility for Federal contracts
should not last less than two years, and offers a case-by-case
waiver if the President determines that doing so is essential
to the national security interests of the United States.
Section 227. Conditions for Entry and Operation of Vessels.
Under this section, all Iranian vessels that are re-registered
by another government, and all non-Iranian vessels operating on
behalf of Iran would be targeted. If a registry allows an
Iranian-owned or operated vessel to be registered, then all
vessels under that country's registry are denied access to the
United States.
TITLE III--ADDITIONAL AUTHORITIES TO PREVENT CENSORSHIP ACTIVITIES IN
IRAN
Section 301. Report on implementation of sanctions against
the Islamic Republic of Iran Broadcasting. This section
requires a report on the implementation of sanctions against
the Islamic Republic of Iran Broadcasting (IRIB) to include
entities that facilitate its operation by providing services or
equipment, IRIB activities with respect to the broadcasting of
forced confessions and hate speech, and jamming of foreign
broadcasts.
Section 302. List of persons who are high-risk re-exporters
of sensitive technologies. This provision requires that the
Administration provide a public list of persons who are high-
risk exporters that may provide sensitive technologies to Iran
in order to seek to ensure that the Government of Iran is
unable to obtain such technologies.
Section 303. Sense of Congress on provision of intercept
technologies to Iran. This section expresses the Sense of
Congress that persons involved in providing intercept
technologies that limit freedom of speech or expression should
be held accountable and an existing contract with Iran is not a
justification for continued repression and encourages the
provision of certain consumer communication technologies.
Section 304. Sense of Congress on availability of consumer
communication technologies in Iran. This provision expresses
the Sense of Congress that certain consumer communication
technologies are available to the people of Iran and Iranian
civil society in order to promote the free flow of information
to Iran.
Section 305. Expedited consideration of requests for
authorization of transfer of goods and services to Iran to
facilitate the ability of Iranian persons to freely
communicate. This provision amends Section 413 of the Iran
Threat Reduction Act to include certain technologies that
promote the free flow of information as being eligible for
expedited consideration for an OFAC license from Treasury. The
Committee believes that, given the severity of the measures
taken by Iran to engage in internet censorship, the licensing
of such items must be a priority.
TITLE IV--REPORTS AND OTHER MATTERS
Section 401. National Strategy on Iran. This provision
requires that the Administration produce annually a national
strategy on Iran highlighting Iranian capabilities and key
vulnerabilities that the United States may exploit, providing
the United States Government a roadmap as to how to effectively
address the Iranian threat.
Section 402. Report on Iranian nuclear and economic
capabilities. This provision requires reporting on both the
Iranian nuclear timetable and how long until the Iranian
government experiences a debilitating economic event.
Section 403. Report on plausibility of expanding sanctions
on Iranian oil. This section requires a report on whether it is
possible to ban the entry of products that contain Iranian-
origin petroleum and petroleum products as part of their
content into the United States.
Section 404. GAO report on Iranian strategy to evade
current sanctions and other matters. This provision requires
the Comptroller General to evaluate the strategy of the
Government of Iran to evade current economic and financial
sanctions, and also report on their efforts to diversify their
economic base beyond the energy sector.
Section 405. Authority to consolidate reports required
under Iran sanctions laws. Given the wide array of reporting
requirements, this provision allows the Administration
consolidate and synchronize reporting requirements in existing
law.
Section 406. Amendments to definitions under Iran Sanctions
Act of 1996 and Iran Threat Reduction and Syria Human Rights
Act of 2012. This section adjusts the threshold for ``credible
information'' within the Iran Sanctions Act investigative
process to mandate that the President act on such information,
rather than leaving it discretionary. It also adds the
Committee on Transportation and Infrastructure to the Sec. 211
reporting requirement in the Iran Threat Reduction Act.
Section 407. Implementation; penalties. This provision
provides the President the standard International Emergency
Economic Powers Act authorities that are required to implement
the provisions of this Act, inclusive of civil and criminal
penalties under that Act.
Section 408. Severability. This allows for the severability
of provisions from the underlying legislation if they are found
to be unconstitutional.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, existing law in which no change
is proposed is shown in roman):
COMPREHENSIVE IRAN SANCTIONS, ACCOUNTABILITY, AND DIVESTMENT ACT OF
2010
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) * * *
(b) Table of Contents.--The table of contents for this Act
is as follows:
* * * * * * *
TITLE I--SANCTIONS
* * * * * * *
[Sec. 106. Prohibition on procurement contracts with persons that export
sensitive technology to Iran.]
Sec. 106. Prohibition on procurement contracts with and imposition of
sanctions against persons that export sensitive technology to
Iran.
* * * * * * *
TITLE I--SANCTIONS
* * * * * * *
SEC. 104. MANDATORY SANCTIONS WITH RESPECT TO FINANCIAL INSTITUTIONS
THAT ENGAGE IN CERTAIN TRANSACTIONS.
(a) * * *
* * * * * * *
(c) Prohibitions and Conditions With Respect to Certain
Accounts Held by Foreign Financial Institutions.--
(1) * * *
(2) Activities described.--A foreign financial
institution engages in an activity described in this
paragraph if the foreign financial institution--
(A) * * *
* * * * * * *
(D) facilitates efforts by the Central Bank
of Iran or any other Iranian financial
institution to carry out an activity described
in subparagraph (A) or (B); [or]
(E) facilitates a significant transaction
or transactions or provides significant
financial services for--
(i) * * *
(ii) a person whose property or
interests in property are blocked
pursuant to that Act in connection
with--
(I) * * *
(II) Iran's support for
international terrorism[.]; or
(F) facilitates a significant transaction
or transactions or provides significant
financial services for--
(i) a person that is subject to
sanctions under section 105(c),
105A(c), 105B(c), or 105C(a); or
(ii) a person that exports
sensitive technology to Iran and is
subject to the prohibition on
procurement contracts as described in
section 106.
* * * * * * *
SEC. 106. PROHIBITION ON PROCUREMENT CONTRACTS WITH AND IMPOSITION OF
SANCTIONS AGAINST PERSONS THAT EXPORT SENSITIVE
TECHNOLOGY TO IRAN.
(a) In General.--Except as provided in subsection (b), and
pursuant to such regulations as the President may prescribe,
the head of an executive agency may not enter into or renew a
contract, on or after the date that is 90 days after the date
of the enactment of this Act, for the procurement of [goods or
services with a person] goods or services--
(1) with a person that exports sensitive technology
to Iran[.]; or
(2) with respect to a person acting on behalf of or
at the direction of, or owned or controlled by, a
person described in paragraph (1) or a person who owns
or controls a person described in paragraph (1).
* * * * * * *
(c) Sensitive Technology Defined.--
(1) In general.--The term ``sensitive technology''
means hardware, software, telecommunications equipment,
or any other technology, that the President determines
[is to be used specifically] has been designed or
specifically modified--
(A) * * *
* * * * * * *
(e) Presidential Determination and Imposition of Additional
Sanctions.--The President shall impose 5 or more of the
sanctions described in section 6(a) of the Iran Sanctions Act
of 1996 (Public Law 104-172; 50 U.S.C. 1701 note) with respect
to--
(1) a person if the President determines that the
person knowingly exports sensitive technology to Iran;
or
(2) a person acting on behalf of or at the
direction of, or owned or controlled by, a person
described in paragraph (1) or a person who owns or
controls a person described in paragraph (1).
* * * * * * *
TITLE II--DIVESTMENT FROM CERTAIN COMPANIES THAT INVEST IN IRAN
* * * * * * *
SEC. 202. AUTHORITY OF STATE AND LOCAL GOVERNMENTS TO DIVEST FROM
CERTAIN COMPANIES THAT INVEST IN IRAN.
[(a) Sense of Congress.--It is the sense of Congress that
the United States should support the decision of any State or
local government that for moral, prudential, or reputational
reasons divests from, or prohibits the investment of assets of
the State or local government in, a person that engages in
investment activities in the energy sector of Iran, as long as
Iran is subject to economic sanctions imposed by the United
States.
[(b) Authority to Divest.--Notwithstanding any other
provision of law, a State or local government may adopt and
enforce measures that meet the requirements of subsection (d)
to divest the assets of the State or local government from, or
prohibit investment of the assets of the State or local
government in, any person that the State or local government
determines, using credible information available to the public,
engages in investment activities in Iran described in
subsection (c).
[(c) Investment Activities Described.--A person engages in
investment activities in Iran described in this subsection if
the person--
[(1) has an investment of $20,000,000 or more in
the energy sector of Iran, including 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 of Iran; or
[(2) is a financial institution that extends
$20,000,000 or more in credit to another person, for 45
days or more, if that person will use the credit for
investment in the energy sector of Iran.]
(a) Sense of Congress.--It is the sense of Congress that
the United States should support the decision of any State or
local government to divest from or prohibit the investment of
assets of the State or local government, to prohibit the
issuance of licenses to conduct business in the State or
locality to, and to impose disclosure and transparency
requirements on, a person that invests in or conducts
transactions for or with a person or sector subject to
sanctions with respect to Iran.
(b) Authority.--Notwithstanding any other provision of law,
a State or local government may adopt and enforce measures that
meet the requirements of subsection (d)--
(1) to divest the assets of the State or local
government from a person described in subsection (c);
(2) to prohibit investment of the assets of the
State or local government in any such person;
(3) to prohibit the issuance of licenses to conduct
business in the State or locality to any such person;
or
(4) to impose disclosure and transparency
requirements on any such person.
(c) Persons Described.--A person described in this
subsection is a person that invests in or engages in any
transaction with or for any person engaged in any activity for
which sanctions may be imposed under any provision of Federal
law imposing sanctions with respect to Iran.
(d) Requirements.--Any measure taken by a State or local
government under subsection (b) shall meet the following
requirements:
(1) * * *
* * * * * * *
(4) Sense of congress on avoiding erroneous
targeting.--It is the sense of Congress that a State or
local government should not adopt a measure under
subsection (b) with respect to a person unless the
State or local government has made every effort to
avoid erroneously targeting the person and has verified
that the person [engages in investment activities in
Iran described in subsection (c)] is a person described
in subsection (c).
* * * * * * *
(f) Nonpreemption.--A measure of a State or local
government authorized under subsection (b) [or (i)] or (g) is
not preempted by any Federal law or regulation.
[(g) Definitions.--In this section:
[(1) Assets.--
[(A) In general.--Except as provided in
subparagraph (B), the term ``assets'' refers to
public monies and includes any pension,
retirement, annuity, or endowment fund, or
similar instrument, that is controlled by a
State or local government.
[(B) Exception.--The term ``assets'' does
not include employee benefit plans covered by
title I of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1001 et seq.).
[(2) Investment.--The ``investment'' includes--
[(A) a commitment or contribution of funds
or property;
[(B) a loan or other extension of credit;
and
[(C) the entry into or renewal of a
contract for goods or services.
[(h) Effective Date.--
[(1) In general.--Except as provided in paragraph
(2) or subsection (i), this section applies to measures
adopted by a State or local government before, on, or
after the date of the enactment of this Act.
[(2) Notice requirements.--Except as provided in
subsection (i), subsections (d) and (e) apply to
measures adopted by a State or local government on or
after the date of the enactment of this Act.]
[(i)] (g) Authorization for Prior Enacted Measures.--
(1) In general.--Notwithstanding any other
provision of this section or any other provision of
law, a State or local government may enforce a measure
(without regard to the requirements of subsection (d),
except as provided in paragraph (2)) adopted by the
State or local government before the date of the
enactment of this Act that provides for the divestment
of assets of the State or local government from, or
prohibits the investment of the assets of the State or
local government in, any person that the State or local
government determines, using credible information
available to the public, engages in investment
activities in Iran [(determined without regard to
subsection (c))] or other business activities in Iran
that are identified in the measure.
* * * * * * *
[(j)] (h) Rule of Construction.--Nothing in this Act or any
other provision of law authorizing sanctions with respect to
Iran shall be construed to abridge the authority of a State to
issue and enforce rules governing the safety, soundness, and
solvency of a financial institution subject to its jurisdiction
or the business of insurance pursuant to the Act of March 9,
1945 (15 U.S.C. 1011 et seq.) (commonly known as the
``McCarran-Ferguson Act'').
* * * * * * *
TITLE III--PREVENTION OF DIVERSION OF CERTAIN GOODS, SERVICES, AND
TECHNOLOGIES TO IRAN
SEC. 301. DEFINITIONS.
In this title:
(1) Allow.--The term ``allow'', with respect to the
diversion through a country of goods, services, or
technologies, means the government of the country
[knows or has reason to know] knows, has reason to
know, or should have known that the territory of the
country is being used for such diversion.
* * * * * * *
SEC. 302. IDENTIFICATION OF COUNTRIES OF CONCERN WITH RESPECT TO THE
DIVERSION OF CERTAIN GOODS, SERVICES, AND
TECHNOLOGIES TO OR THROUGH IRAN.
(a) * * *
(b) Goods, Services, and Technologies Described.--Goods,
services, or technologies described in this subsection are
goods, services, or technologies--
(1) that--
(A) * * *
* * * * * * *
(C) are--
(i) * * *
(ii) defense articles or defense
services on the United States Munitions
List; [or]
(2) that are prohibited for export to Iran under a
resolution of the United Nations Security Council[.];
or
(3) that are--
(A) items described in the Nuclear
Suppliers Group Guidelines for the Export of
Nuclear Material, Equipment and Technology
(published by the International Atomic Energy
Agency as Information Circular INFCIRC/254/Rev.
3/Part 1, and subsequent revisions) and
Guidelines for Transfers of Nuclear-Related
Dual-Use Equipment, Material, and Related
Technology (published by the International
Atomic Energy Agency as Information Circular
INFCIRC/254/Rev. 3/Part 2, and subsequent
revisions);
(B) items on the Missile Technology Control
Regime Equipment and Technology Annex of June
11, 1996, and subsequent revisions;
(C) items and substances relating to
biological and chemical weapons the export of
which is controlled by the Australia Group;
(D) items on the Schedule One or Schedule
Two list of toxic chemicals and precursors the
export of which is controlled pursuant to the
Convention on the Prohibition of the
Development, Production, Stockpiling and Use of
Chemical Weapons and on Their Destruction; or
(E) items on the Wassenaar Arrangement list
of Dual Use Goods and Technologies and
Munitions list of July 12, 1996, and subsequent
revisions.
* * * * * * *
SEC. 303. DESTINATIONS OF DIVERSION CONCERN.
(a) * * *
* * * * * * *
(c) Licensing Requirement.--[Not later than]
(1) In general.--Not later than 45 days after
submitting a report required by subsection (b) with
respect to a country designated as a Destination of
Diversion Concern under subsection (a), the President
shall require a license under the Export Administration
Regulations or the International Traffic in Arms
Regulations (whichever is applicable) to export to that
country a good, service, or technology on the list
required under subsection (b)(2), with the presumption
that any application for such a license will be denied.
(2) Additional measures.--The President may impose
restrictions on United States foreign assistance or
measures authorized under the International Emergency
Economic Powers Act with respect to a country
designated as a country of diversion concern if the
President determines such restrictions or measures
would prevent the transfer of United States-origin
goods, services, and technology to Iran.
* * * * * * *
----------
IRAN THREAT REDUCTION AND SYRIA HUMAN RIGHTS ACT OF 2012
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) * * *
(b) Table of Contents.--The table of contents for this Act
is as follows:
* * * * * * *
TITLE II--EXPANSION OF SANCTIONS RELATING TO THE ENERGY SECTOR OF IRAN
AND PROLIFERATION OF WEAPONS OF MASS DESTRUCTION BY IRAN
* * * * * * *
Subtitle B--Additional Measures Relating to Sanctions Against Iran
* * * * * * *
Sec. 220A. Imposition of sanctions with respect to certain transactions
in foreign currencies.
* * * * * * *
Sec. 225. Sanctions with respect to certain transactions with Iran.
TITLE III--SANCTIONS WITH RESPECT TO IRAN'S REVOLUTIONARY GUARD CORPS
Subtitle A--Identification of, and Sanctions With Respect to, Officials,
Agents, Affiliates, and Supporters of Iran's Revolutionary Guard Corps
and Other Sanctioned Persons
* * * * * * *
[Sec. 304. Rule of construction.]
Sec. 304. Designation of Iran's Revolutionary Guard Corps as foreign
terrorist organization.
Sec. 305. Rule of construction.
* * * * * * *
TITLE IV--MEASURES RELATING TO HUMAN RIGHTS ABUSES IN IRAN
Subtitle A--Expansion of Sanctions Relating to Human Rights Abuses in
Iran
[Sec. 401. Imposition of sanctions on certain persons responsible for or
complicit in human rights abuses committed against citizens of
Iran or their family members after the June 12, 2009,
elections in Iran.]
Sec. 401. Imposition of sanctions on certain persons responsible for or
complicit in human rights abuses, engaging in censorship, or
engaging in the diversion of goods intended for the people of
Iran.
* * * * * * *
TITLE II--EXPANSION OF SANCTIONS RELATING TO THE ENERGY SECTOR OF IRAN
AND PROLIFERATION OF WEAPONS OF MASS DESTRUCTION BY IRAN
* * * * * * *
Subtitle B--Additional Measures Relating to Sanctions Against Iran
SEC. 211. IMPOSITION OF SANCTIONS WITH RESPECT TO THE PROVISION OF
VESSELS OR SHIPPING SERVICES TO TRANSPORT CERTAIN
GOODS RELATED TO PROLIFERATION OR TERRORISM
ACTIVITIES TO IRAN.
(a) * * *
* * * * * * *
(f) Definition.--In this section, the term ``appropriate
congressional committees'' includes the Committee on
Transportation and Infrastructure of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate.
* * * * * * *
SEC. 220A. IMPOSITION OF SANCTIONS WITH RESPECT TO CERTAIN TRANSACTIONS
IN FOREIGN CURRENCIES.
(a) In General.--The President--
(1) shall prohibit the opening, and prohibit or
impose strict conditions on the maintaining, in the
United States of a correspondent account or a payable-
through account by a foreign financial institution that
is a person described in subsection (b); and
(2) may impose sanctions pursuant to the
International Emergency Economic Powers Act (50 U.S.C.
1701 et seq.) with respect to any other person
described in subsection (b).
(b) Person Described.--A person described in this
subsection is a person the President determines has--
(1) knowingly conducted or facilitated a
significant transaction involving the currency of a
country other than the country in which the person is
operating at the time of the transaction with, for, or
on behalf of--
(A) the Central Bank of Iran or another
Iranian financial institution designated by the
Secretary of the Treasury for the imposition of
sanctions pursuant to the International
Emergency Economic Powers Act (50 U.S.C. 1701
et seq.); or
(B) a person described in section
1244(c)(2) of the Iran Freedom and Counter-
Proliferation Act (22 U.S.C. 8803(c)(2)) (other
than a person described in subparagraph
(C)(iii) of that section); or
(2) knowingly conducted or facilitated a
significant transaction by another person involving the
currency of a country other than the country in which
that other person is operating at the time of the
transaction, with, for, or on behalf of a person
described in subparagraph (A) or (B) of paragraph (1).
(c) Waiver.--
(1) In general.--The President may waive the
application of subsection (a) with respect to a person
for a period of not more than 180 days, and may renew
that waiver for additional periods of not more than 180
days, if the President--
(A) determines that the waiver is vital to
the national security of the United States; and
(B) not less than 7 days before the waiver
or the renewal of the waiver, as the case may
be, takes effect, submits a report to the
appropriate congressional committees on the
waiver and the reason for the waiver.
(2) Form of report.--Each report submitted under
paragraph (1)(B) shall be submitted in unclassified
form but may include a classified annex.
(d) Rule of Construction.--Nothing in this section shall be
construed to prohibit any person from, or authorize or require
the imposition of sanctions with respect to any person for,
conducting or facilitating any transaction in the currency of
the country in which the person is operating at the time of the
transaction for the sale of agricultural commodities, food,
medicine, or medical devices.
(e) Definitions.--In this section:
(1) Account; correspondent account; payable-through
account.--The terms ``account'', ``correspondent
account'', and ``payable-through account'' have the
meanings given those terms in section 5318A of title
31, United States Code.
(2) Agricultural commodity.--The term
``agricultural commodity'' has the meaning given that
term in section 102 of the Agricultural Trade Act of
1978 (7 U.S.C. 5602).
(3) Foreign financial institution.--The term
``foreign financial institution'' has the meaning given
that term in section 561.308 of title 31, Code of
Federal Regulations (or any corresponding similar
regulation or ruling).
(4) Iranian financial institution.--The term
``Iranian financial institution'' has the meaning given
that term in section 104A(d) of the Comprehensive Iran
Sanctions, Accountability, and Divestment Act of 2010
(22 U.S.C. 8513b(d)).
(5) Medical device.--The term ``medical device''
has the meaning given the term ``device'' in section
201 of the Federal Food, Drug, and Cosmetic Act (21
U.S.C. 321).
(6) Medicine.--The term ``medicine'' has the
meaning given the term ``drug'' in section 201 of the
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321).
(7) Transaction.--The term ``transaction'' includes
a foreign exchange swap, a foreign exchange forward,
and any other type of similar currency exchange or
conversion or similar derivative instrument.
* * * * * * *
SEC. 225. SANCTIONS WITH RESPECT TO CERTAIN TRANSACTIONS WITH IRAN.
(a) Authorization of Sanctions.--
(1) In general.--Except as specifically provided in
this section, the President may impose sanctions
pursuant to the International Emergency Economic Powers
Act (50 U.S.C. 1701 et seq.) on a foreign person that
the President determines has, on or after the date that
is 60 days after the date of the enactment of the
Nuclear Iran Prevention Act of 2013, knowingly
conducted or facilitated a significant financial
transaction with the Central Bank of Iran or other
Iranian financial institution that has been designated
by the Secretary of the Treasury for the imposition of
sanctions pursuant to the International Emergency
Economic Powers Act, for--
(A) the purchase of goods or services by a
person in Iran or on behalf of a person in
Iran; or
(B) the purchase of goods or services from
a person in Iran or on behalf of a person in
Iran.
(2) Rule of construction.--Nothing in this section
shall be construed to affect the imposition of
sanctions with respect to a financial transaction for
the purchase of petroleum or petroleum products from
Iran under section 1245 of the National Defense
Authorization Act for Fiscal Year 2012 (Public Law 112-
81; 125 Stat. 1648).
(b) Exception for Overall Reductions of Exports to and
Imports From Iran.--
(1) In general.--The President is authorized not to
impose sanctions under subsection (a) on a foreign
person if the President determines and submits to the
appropriate congressional committees a report that
contains a determination of the President that the
country with primary jurisdiction over the foreign
person has, during the time period described in
paragraph (2), significantly reduced the value and
volume of imports and exports of goods (other than
petroleum or petroleum products) and services between
such country and Iran.
(2) Time period described.--The time period
referred to in paragraph (1) is the 60-day period
ending on the date on which the President makes the
determination under paragraph (1) as compared to the
immediately preceding 60-day period.
(c) Exception for Sales of Agricultural Commodities, Food,
Medicine and Medical Devices.--The President may not impose
sanctions under subsection (a) on a foreign person with respect
to a transaction for the sale of agricultural commodities,
food, medicine or medical devices to Iran.
(d) Definitions.--In this section:
(1) Foreign person.--The term ``foreign person''
has the meaning given that term in section 14 of the
Iran Sanctions Act of 1996 (Public Law 104-172; 50
U.S.C. 1701 note).
(2) Iranian financial institution.--The term
``Iranian financial institution'' has the meaning given
that term in section 104A(d) of the Comprehensive Iran
Sanctions, Accountability, and Divestment Act of 2010
(22 U.S.C. 8513b(d)).
TITLE III--SANCTIONS WITH RESPECT TO IRAN'S REVOLUTIONARY GUARD CORPS
Subtitle A--Identification of, and Sanctions With Respect to,
Officials, Agents, Affiliates, and Supporters of Iran's Revolutionary
Guard Corps and Other Sanctioned Persons
* * * * * * *
SEC. 304. DESIGNATION OF IRAN'S REVOLUTIONARY GUARD CORPS AS FOREIGN
TERRORIST ORGANIZATION.
(a) In General.--Not later than 30 days after the date of
the enactment of this section, the Secretary of State shall
determine if Iran's Revolutionary Guard Corps meets the
criteria for designation as a foreign terrorist organization as
set forth in section 219 of the Immigration and Nationality Act
(8 U.S.C. 1189).
(b) Affirmative Determination.--If the Secretary of State
determines under subsection (a) that Iran's Revolutionary Guard
Corps meets the criteria set forth under such section 219, the
Secretary shall designate Iran's Revolutionary Guard Corps as a
foreign terrorist organization under such section 219.
(c) Negative Determination.--
(1) In general.--If the Secretary of State
determines under subsection (a) that Iran's
Revolutionary Guard Corps does not meet the criteria
set forth under such section 219, the Secretary shall
submit to the committees of Congress specified in
subsection (e) a report that contains a detailed
justification as to which criteria have not been met.
(2) Form.--The report required under paragraph (1)
shall be submitted in unclassified form, but may
contain a classified annex, if necessary.
(d) Applicability of Sanctions to Quds Force.--The
sanctions applied to any entity designated as a foreign
terrorist organization as set forth in such section 219 shall
be applied to the Iran's Revolutionary Guard Corps Quds Force.
(e) Committees of Congress Specified.--The committees of
Congress specified in this subsection are the following:
(1) The Committee on Foreign Affairs, the Committee
on the Judiciary, and the Committee on Homeland
Security of the House of Representatives.
(2) The Committee on Foreign Relations, the
Committee on the Judiciary, and the Committee on
Homeland Security and Governmental Affairs of the
Senate.
SEC. [304.] 305. RULE OF CONSTRUCTION.
Nothing in this subtitle shall be construed to limit the
authority of the President to designate foreign persons for the
imposition of sanctions pursuant to the International Emergency
Economic Powers Act (50 U.S.C. 1701 et seq.).
* * * * * * *
TITLE IV--MEASURES RELATING TO HUMAN RIGHTS ABUSES IN IRAN
Subtitle A--Expansion of Sanctions Relating to Human Rights Abuses in
Iran
SEC. 401. IMPOSITION OF SANCTIONS ON CERTAIN PERSONS RESPONSIBLE FOR OR
COMPLICIT IN HUMAN RIGHTS ABUSES [COMMITTED AGAINST
CITIZENS OF IRAN OR THEIR FAMILY MEMBERS AFTER THE
JUNE 12, 2009, ELECTIONS IN IRAN.], ENGAGING IN
CENSORSHIP, OR ENGAGING IN THE DIVERSION OF GOODS
INTENDED FOR THE PEOPLE OF IRAN.
[(a) Sense of Congress.--It is the sense of Congress that
the Supreme Leader of Iran, the President of Iran, senior
members of the Intelligence Ministry of Iran, senior members of
Iran's Revolutionary Guard Corps, Ansar-e-Hezbollah and Basij-
e-Mostaz'afin, and the Ministers of Defense, Interior, Justice,
and Telecommunications are ultimately responsible for ordering,
controlling, or otherwise directing a pattern and practice of
serious human rights abuses against the Iranian people, and
thus the President should include such persons on the list of
persons who are responsible for or complicit in committing
serious human rights abuses and subject to sanctions pursuant
to section 105 of the Comprehensive Iran Sanctions,
Accountability, and Divestment Act of 2010 (22 U.S.C. 8514).]
(a) Finding and Sense of Congress.--
(1) Finding.--Congress finds that Iranian persons
holding the following positions in the Government of
Iran are ultimately responsible for and have and
continue to knowingly order, control, direct and
implement gross violations of the human rights of the
Iranian people, the human rights of persons in other
countries, censorship, and the diversion of food,
medicine, medical devices, agricultural commodities and
other goods intended for the Iranian people:
(A) The Supreme Leader of Iran.
(B) The President of Iran.
(C) Members of the Council of Guardians.
(D) Members of the Expediency Council.
(E) The Minister of Intelligence and
Security.
(F) The Commander of the Iran's
Revolutionary Guard Corps.
(G) The Commander of the Basij-e-
Mostaz'afin.
(H) The Commander of Ansar-e-Hezbollah.
(I) The Commander of the Quds Force.
(J) The Commander in Chief of the Police
Force.
(K) Senior officials or key employees of an
organization described in any of subparagraphs
(C) through (J) or in the Atomic Energy
Organization of Iran, the Islamic Consultative
Assembly of Iran, the Council of Ministers of
Iran, the Assembly of Experts of Iran, the
Ministry of Defense and Armed Forces Logistics
of Iran, the Ministry of Justice of Iran, the
Ministry of Interior of Iran, the prison system
of Iran, or the judicial system of Iran.
(2) Sense of congress.--It is the sense of Congress
that--
(A) the President should include any
Iranian person holding a position in the
Government of Iran described in paragraph (1)
on one or more of the lists of persons subject
to sanctions pursuant to section 105(b),
105A(b), 105B(b), or 105C(b) of the
Comprehensive Iran Sanctions, Accountability,
and Divestment Act of 2010 (22 U.S.C. 8514(b),
8514a(b), 8514b(b), or 8514c(b)); and
(B) the President should impose sanctions
on such Iranian person pursuant to section 105,
105A, 105B, or 105C of such Act (as the case
may be).
(b) Additional Finding and Sense of Congress.--
(1) Finding.--Congress finds that other senior
officials of the Government of Iran, its agencies and
instrumentalities, also have and continue to knowingly
order, control, direct, and implement gross violations
of the human rights of the Iranian people and the human
rights of persons in other countries.
(2) Sense of congress.--It is the sense of Congress
that--
(A) the President should investigate
violations of human rights described in
paragraph (1) to identify other senior
officials of the Government of Iran that also
have or continue to knowingly order, control,
direct, and implement gross violations of human
rights of the Iranian people and the human
rights of persons in other countries;
(B) the President should include any such
official on one or more of the lists of persons
subject to sanctions pursuant to section
105(b), 105A(b), 105B(b), or 105C(b) of the
Comprehensive Iran Sanctions, Accountability,
and Divestment Act of 2010 (22 U.S.C. 8514(b),
8514a(b), 8514b(b), or 8514c(b)); and
(C) the President should impose sanctions
on any such official pursuant to section 105,
105A, 105B, or 105C of such Act (as the case
may be).
[(b)] (c) Report.--
(1) Report required.--[Not later than]
(A) In general.--Not later than 180 days
after the date of the enactment of [this Act]
the Nuclear Iran Prevention Act of 2013, and
annually thereafter for 3 years, the Secretary
of State shall submit to the appropriate
congressional committees a detailed report with
respect to whether each person described in
subsection (a) is responsible for or complicit
in, or responsible for ordering, controlling,
or [otherwise directing the commission of]
otherwise directing--
(i) the commission of serious human
rights abuses against citizens of Iran
or their family members on or after
June 12, 2009, regardless of whether
such abuses occurred in [Iran. For any
such person] Iran;
(ii) censorship or related
activities with respect to Iran; or
(iii) the diversion of goods, food,
medicine, medical devices, and
agricultural commodities, intended for
the people of Iran.
(B) Requirement relating to persons not
included.--For any such person who is not
included in such report, the Secretary of State
should describe in the report the reasons why
the person was not included, including
information on whether sufficient credible
evidence of responsibility for such abuses was
found.
(C) Requirement relating to financial net
worth.--For each such person described in
subparagraph (A) and each such person described
in subparagraph (B), the Secretary of State
shall include in the report a description of
the estimated net worth of the person.
* * * * * * *
Subtitle B--Additional Measures to Promote Human Rights
* * * * * * *
SEC. 413. EXPEDITED CONSIDERATION OF REQUESTS FOR AUTHORIZATION OF
CERTAIN HUMAN RIGHTS-, HUMANITARIAN-, AND
DEMOCRACY-RELATED ACTIVITIES WITH RESPECT TO IRAN.
(a) * * *
* * * * * * *
(e) Rule of Construction.--The expedited process for the
consideration of complete requests for authorization to engage
in the activities described in subsection (a) shall be
construed to also apply to the transfer of goods and services
to Iran to facilitate the ability of Iranian persons to freely
communicate, obtain information, and access the Internet and
other communications systems.
[(e)] (f) Regulations.--The Secretary of the Treasury may
prescribe such regulations as are appropriate to carry out this
section.
* * * * * * *
TITLE VI--GENERAL PROVISIONS
SEC. 601. IMPLEMENTATION; PENALTIES.
(a) Implementation.--The President may exercise all
authorities provided under sections 203 and 205 of the
International Emergency Economic Powers Act (50 U.S.C. 1702 and
1704) to carry out--
(1) sections 211, 212, 213, 217, 218, 220, 220A,
312, and 411, subtitle A of title III, and title VII;
* * * * * * *
(b) Penalties.--
(1) * * *
(2) Provisions specified.--The provisions specified
in this paragraph are the following:
(A) Sections 211, 212, 213, [and 220,] 220,
and 220A, subtitle A of title III, and title
VII.
* * * * * * *
SEC. 605. TERMINATION.
(a) In General.--The provisions of sections 211, 212, 213,
218, 220, 220A, 221, and 501, title I, and subtitle A of title
III shall terminate on the date that is 30 days after the date
on which the President makes the certification described in
section 401(a) of the Comprehensive Iran Sanctions,
Accountability, and Divestment Act of 2010 (22 U.S.C. 8551(a)).
* * * * * * *
----------
IRAN SANCTIONS ACT OF 1996
* * * * * * *
SEC. 5. IMPOSITION OF SANCTIONS.
(a) Sanctions Relating to the Energy Sector of Iran.--
(1) * * *
* * * * * * *
(7) Transportation of crude oil [from iran] from
iran and certain imports and exports to and from
iran.--
(A) In general.--Except as provided in
subsection (f), the President shall impose 5 or
more of the sanctions described in section 6(a)
with respect to a person if the President
determines that--
(i) the person is a controlling
beneficial owner of, or otherwise owns,
operates, or controls, or insures, [a
vessel that, on or after] a vessel
that--
(I) on or after the date
that is 90 days after the date
of the enactment of the Iran
Threat Reduction and Syria
Human Rights Act of 2012, was
used to transport crude oil
from Iran to another country;
[and] or
(II)(aa) knowingly
transports to or from Iran any
good if the importation to Iran
or exportation from Iran, as
the case may be, of that good
is subject to sanctions under
this Act; or
(bb) knowingly engages in a
vessel-to-vessel transfer of
crude oil transported from
Iran;
(ii)(I) * * *
(II) in the case of a person that
otherwise owns, operates, or controls,
or insures, the vessel, the person knew
or should have known the vessel was so
used[.]; or
(iii) the person is a person who
knowingly sells, leases, or otherwise
facilitates the transfer of ownership
of a vessel to the Government of Iran,
or any agencies or affiliates thereof,
for the purpose of transportation of
crude oil from Iran to another country.
* * * * * * *
(b) Mandatory Sanctions With Respect to Development of
Weapons of Mass Destruction or Other Military Capabilities.--
(1) * * *
(2) Joint ventures relating to the mining,
production, or transportation of uranium and other
related activities.--
(A) * * *
* * * * * * *
(C) Transfer to iran of goods, services, or
technology that can be used for mining or
milling of uranium.--Except as provided in
subsection (f), the President shall impose 5 or
more of the sanctions described in section 6(a)
with respect to a person if the President
determines that the person knowingly
transferred, on or after the date of the
enactment of the Nuclear Iran Prevention Act of
2013, to Iran goods, services, or technology
that would materially contribute to Iran's
ability to mine or mill uranium.
* * * * * * *
SEC. 9. DURATION OF SANCTIONS; PRESIDENTIAL WAIVER.
(a) * * *
* * * * * * *
(c) Presidential Waiver.--
(1) Authority.--
(A) * * *
[(B) Sanctions relating to development of
weapons of mass destruction or other military
capabilities.--The President may waive, on a
case-by-case basis and for a period of not more
than one year, the requirement in paragraph (1)
or (2) of section 5(b) to impose 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 section, 30 days or more after the
President determines and so reports to the
appropriate congressional committees that it is
vital to the national security interests of the
United States to exercise such waiver
authority.]
[(C)] (B) Renewal of waivers.--The
President may renew, on a case-by-case basis, a
waiver with respect to a person under
subparagraph (A) [or (B)] for additional one-
year periods if, not later than 30 days before
the waiver expires, the President makes the
determination and submits to the appropriate
congressional committees the report described
in subparagraph (A) [or (B), as applicable].
* * * * * * *
SEC. 14. DEFINITIONS.
As used in this Act:
(1) * * *
* * * * * * *
(4) Credible information.--The term ``credible
information'', with respect to a person--
(A) * * *
(B) [may include, in the discretion of the
President] includes--
(i) * * *
* * * * * * *
----------
NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2012
* * * * * * *
DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS
* * * * * * *
TITLE XII--MATTERS RELATING TO FOREIGN NATIONS
* * * * * * *
Subtitle C--Reports and Other Matters
* * * * * * *
SEC. 1245. IMPOSITION OF SANCTIONS WITH RESPECT TO THE FINANCIAL SECTOR
OF IRAN.
(a) * * *
* * * * * * *
(d) Imposition of Sanctions With Respect to the Central
Bank of Iran and Other Iranian Financial Institutions.--
(1) * * *
* * * * * * *
(4) Applicability of sanctions with respect to
petroleum transactions.--
(A) * * *
* * * * * * *
(D) Exception.--
(i) In general.--Sanctions imposed
pursuant to paragraph (1) shall not
apply with respect to a financial
transaction described in clause (ii)
conducted or facilitated by a foreign
financial institution if the President
determines and reports to Congress, not
later than 90 days after the date on
which the President makes the
determination required by subparagraph
(B), and every 180 days thereafter,
that the country with primary
jurisdiction over the foreign financial
institution--
(I) has significantly
[reduced reduced] reduced its
value and volume of crude oil
purchases from Iran or of
Iranian origin during the
period beginning on the date on
which the President submitted
the last report with respect to
the country under this
subparagraph, and the President
certifies in writing to
Congress that the President has
based such determination on
accurate information on that
country's total purchases of
crude oil from Iran or of
Iranian origin; or
* * * * * * *
(ii) Financial transactions
described.--A financial transaction
conducted or facilitated by a foreign
financial institution is described in
this clause if--
(I) * * *
(II)(aa) any funds owed to
Iran as a result of such trade
are credited to an account
located in the country with
primary jurisdiction over the
foreign financial
institution[.]; and
(bb) the foreign financial
institution holding the account
described in item (aa) does not
knowingly facilitate any
significant financial transfers
for, with, or on behalf of the
Government of Iran, unless the
transaction is excepted from
sanctions under paragraph (2)
or is a transaction described
in subclause (I) and item (aa).
(iii) Crude oil.--In this
subparagraph, the term ``crude oil''
includes unfinished oils, liquefied
petroleum gases, distillate fuel oil,
and residual fuel oil.
(E) Strategy to reduce crude oil purchases
from iran or of iranian origin.--
(i) In general.--Not later than 30
days after the date of the enactment of
the Nuclear Iran Prevention Act of
2013, the President shall make a
determination, based on the information
contained in the most recent report
required under subparagraph (A), of
whether each country that received an
exception under subparagraph (D)(i)(I)
before such date of enactment is able
to reduce its crude oil purchases from
Iran or of Iranian origin so that the
aggregate amount of such purchases is
reduced by not less than an average of
1,000,000 barrels of crude oil per day
by the end of the 1-year period
beginning on the date of submission of
the strategy described in clause (ii).
If the President makes an initial
determination under this clause that
the requirements of this clause cannot
be met, then the President shall
continue to make a determination under
this clause every 90 days thereafter as
to whether or not the requirements of
this clause can be met.
(ii) Strategy.--If the President
determines that the requirements of
clause (i) can be met, then not later
than 60 days after the date of such
affirmative determination, the
President shall develop and submit to
the appropriate congressional
committees a strategy to seek to ensure
that the requirements of clause (i) are
met by the end of the 1-year period
beginning on such date of submission.
(iii) Future exceptions.--
(I) Affirmative
determination.--If the
President determines that the
strategy described in clause
(ii) was achieved, then each
country described in clause (i)
shall be eligible to receive
one or more further exceptions
under subparagraph (D)(i)(I) in
accordance with the provisions
of such subparagraph.
(II) Negative
determination.--Except as
provided in subclause (III), if
the President determines that
the strategy described in
clause (ii) was not achieved,
then each country described in
clause (i) shall be ineligible
to receive any further
exception under subparagraph
(D)(i)(I) in accordance with
the provisions of such
subparagraph.
(III) Exception.--
(aa) In general.--
Subclause (II) shall
not apply with respect
to a country described
in clause (i) if the
country--
(AA)
dramatically
reduced its
crude oil
purchases from
Iran or of
Iranian origin
during the 1-
year period
described in
clause (ii);
and
(BB) has
committed
itself to
continue to
reduce its
crude oil
purchases from
Iran or of
Iranian origin
to a de minimis
level.
(bb) Data.--The
President shall submit
to the appropriate
congressional
committees all data
used to make a
determination under
item (aa) not later
than 15 days before
issuing an exception
under item (aa).
(iv) Appropriate congressional
committees.--In this subparagraph, the
term ``appropriate congressional
committees'' means--
(I) the Committee on
Foreign Affairs and the
Committee on Financial Services
of the House of
Representatives; and
(II) the Committee on
Foreign Relations and the
Committee on Banking, Housing,
and Urban Affairs of the
Senate.
(5) Waiver.--The President may waive the imposition
of sanctions under paragraph (1) for a period of not
more than 120 days, and may renew that waiver for
additional periods of not more than 120 days, if the
President--
(A) determines that such a waiver is [in
the national] vital to the national security
interest of the United States; and
* * * * * * *
(h) Definitions.--In this section:
(1) * * *
* * * * * * *
(3) Significant reductions.--The terms ``reduce
significantly'', ``significant reduction'', and
``significantly reduced'', with respect to purchases
from Iran of petroleum and petroleum products, include
a reduction in such purchases in terms of price [or]
and volume toward a complete cessation of such
purchases and at least a pro rata amount totaling, in
the aggregate, not less than an average of 1,000,000
barrels of crude oil per day by the end of the 1-year
period beginning on the date of submission of the
strategy described in subsection (d)(4)(E)(ii).
* * * * * * *
----------
NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2013
* * * * * * *
DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS
* * * * * * *
TITLE XII--MATTERS RELATING TO FOREIGN NATIONS
* * * * * * *
Subtitle D--Iran Sanctions
* * * * * * *
SEC. 1244. IMPOSITION OF SANCTIONS WITH RESPECT TO [THE ENERGY,
SHIPPING, AND SHIPBUILDING SECTORS] PORTS, SPECIAL
ECONOMIC ZONES, FREE ECONOMIC ZONES, AND STRATEGIC
SECTORS OF IRAN.
(a) Findings.--Congress makes the following findings:
(1) Iran's energy, shipping, [and shipbuilding]
shipbuilding, automotive, construction, engineering, or
mining sectors and Iran's ports are facilitating the
Government of Iran's nuclear proliferation activities
by providing revenue to support proliferation
activities.
* * * * * * *
(b) Designation of Ports [and Entities in the Energy,
Shipping, and Shipbuilding Sectors], Special Economic Zones,
Free Economic Zones, and Entities in Strategic Sectors of Iran
as Entities of Proliferation Concern.--Entities that operate
ports in Iran [and entities in the energy, shipping, and
shipbuilding sectors], entities that operate special economic
zones or free economic zones, and entities in strategic sectors
(as defined in subsection (c)(4)) of Iran, including the
National Iranian Oil Company, the National Iranian Tanker
Company, the Islamic Republic of Iran Shipping Lines, and their
affiliates, play an important role in Iran's nuclear
proliferation efforts and all such entities are hereby
designated as entities of proliferation concern.
(c) Blocking of Property of [Entities in Energy, Shipping,
and Shipbuilding Sectors] Ports, Special Economic Zones, Free
Economic Zones, and Entities in Strategic Sectors.--
(1) Blocking of property.--
[(A) In general.--] On and after the date
that is 180 days after the date of the
enactment of this Act, the President shall
block and prohibit all transactions in all
property and interests in property of any
person described in paragraph (2) if such
property and interests in property are in the
United States, come within the United States,
or are or come within the possession or control
of a United States person.
[(B) Exception.--The requirement to block
and prohibit all transactions in all property
and interests in property under subparagraph
(A) shall not include the authority to impose
sanctions on the importation of goods.]
(2) Persons described.--A person is described in
this paragraph if the President determines that the
person, on or after the date that is 180 days after the
date of the enactment of this Act--
(A) is part of [the energy, shipping, or
shipbuilding sectors] a strategic sector (as
defined in paragraph (4)(A)) of Iran;
(B) operates a port, special economic zone,
or free economic zone in Iran; or
(C) knowingly provides significant
financial, material, technological, or other
support to, or goods or services in support of
any activity or transaction on behalf of or for
the benefit of--
(i) a person determined under
subparagraph (A) to be a part of [the
energy, shipping, or shipbuilding
sectors] a strategic sector (as defined
in paragraph (4)(A)) of Iran;
(ii) a person determined under
subparagraph (B) to operate a port,
special economic zone, or free economic
zone in Iran; or
* * * * * * *
(4) Strategic sector defined.--In this section, the
term ``strategic sector'' means--
(A) the energy, shipping, shipbuilding,
automotive, or mining sector of Iran;
(B) the construction or engineering sector
of Iran if the President determines and reports
to Congress not later than 45 days after the
date of the enactment of the Nuclear Iran
Prevention Act of 2013 that the construction or
engineering sector of Iran, as the case may be,
is of strategic importance to Iran; and
(C) any other sector that the President
designates as of strategic importance to Iran.
(5) Notification and report relating to strategic
sectors.--
(A) Notification.--The President shall
submit to Congress a notification of the
designation of a sector as a strategic sector
of Iran for purposes of paragraph (4)(C) not
later than 30 days after the date on which the
President makes such designation.
(B) Report.--Not later than 90 days after
the date on which the President submits to
Congress a notification of the designation of a
sector as a strategic sector of Iran under
subparagraph (A), the Comptroller General of
the United States shall submit to Congress a
report that contains--
(i) a review and comment on such
designation; and
(ii) recommendations regarding the
designation of additional sectors as
strategic sectors of Iran for purposes
of paragraph (4).
(d) Additional Sanctions With Respect to [the Energy,
Shipping, and Shipbuilding Sectors] Strategic Sectors of
Iran.--
[(1) Sale, supply, or transfer of certain goods and
services.--]
[(A) In general.--Except as provided] (1)
Sale, supply, or transfer of certain goods and
services._Except as provided in this section,
the President shall impose 5 or more of the
sanctions described in section 6(a) of the Iran
Sanctions Act of 1996 (Public Law 104-172; 50
U.S.C. 1701 note) with respect to a person if
the President determines that the person
knowingly, on or after the date that is 180
days after the date of the enactment of this
Act, sells, supplies, or transfers to or from
Iran goods or services described in paragraph
(3).
[(B) Exception.--The requirement to impose
sanctions under subparagraph (A) shall not
include the authority to impose sanctions
relating to the importation of goods under
paragraph (8)(A) or (12) of section 6(a) of the
Iran Sanctions Act of 1996, and any sanction
relating to the importation of goods shall not
count for purposes of the requirement to impose
sanctions under subparagraph (A).]
* * * * * * *
(3) Goods and services described.--Goods or
services described in this paragraph are significant
goods or services used in connection with [the energy,
shipping, or shipbuilding sectors] a strategic sector
(as defined in subsection (c)(4)(A)) of Iran, including
the National Iranian Oil Company, the National Iranian
Tanker Company, and the Islamic Republic of Iran
Shipping Lines.
* * * * * * *
(f) Exception for Afghanistan Reconstruction.--The
President may provide for an exception from the imposition of
sanctions under this section for reconstruction assistance or
economic development for Afghanistan for a period of not more
than 1 year, and may renew that exception for additional
periods of not more than 1 year--
(1) [to the extent that] if the President
determines that such an exception or the renewal of the
exception, as the case may be, is [in the national
interest] in the national security interest of the
United States; and
(2) if the President submits to the appropriate
congressional committees a notification of and
justification for the exception or the renewal of the
exception, as the case may be, not later than 15 days
before issuing the exception or the renewal of the
exception.
* * * * * * *
SEC. 1245. IMPOSITION OF SANCTIONS WITH RESPECT TO THE SALE, SUPPLY, OR
TRANSFER OF CERTAIN MATERIALS TO OR FROM IRAN.
[(a) Sale, Supply, or Transfer of Certain Materials.--]
[(1) In general.--The President]
(a) Sale, Supply, or Transfer of Certain Materials._The
President shall impose 5 or more of the sanctions described in
section 6(a) of the Iran Sanctions Act of 1996 (Public Law 104-
172; 50 U.S.C. 1701 note) with respect to a person if the
President determines that the person knowingly, on or after the
date that is 180 days after the date of the enactment of this
Act, sells, supplies, or transfers, directly or indirectly, to
or from Iran--
[(A)] (1) a precious metal;
[(B)] (2) a material described in subsection (d)
determined pursuant to subsection (e)(1) to be used by
Iran as described in that subsection;
[(C)] (3) any other material described in
subsection (d) if--
[(i)] (A) the material is--
[(I)] (i) to be used in connection
with the energy, shipping, or
shipbuilding sectors of Iran or any
sector of the economy of Iran
determined pursuant to subsection
(e)(2) to be controlled directly or
indirectly by Iran's Revolutionary
Guard Corps;
[(II)] (ii) sold, supplied, or
transferred to or from an Iranian
person included on the list of
specially designated nationals and
blocked persons maintained by the
Office of Foreign Assets Control of the
Department of the Treasury (other than
an Iranian financial institution
described in subsection (b)); or
[(III)] (iii) determined pursuant
to subsection (e)(3) to be used in
connection with the nuclear, military,
or ballistic missile programs of Iran;
or
[(ii)] (B) the material is resold,
retransferred, or otherwise supplied--
[(I)] (i) to an end-user in a
sector described in [subclause (I) of
clause (i)] clause (i) of subparagraph
(A);
[(II)] (ii) to a person described
in [subclause (II) of that clause]
clause (ii) of that subparagraph; or
[(III)] (iii) for a program
described in [subclause (III) of that
clause] clause (iii) of that
subparagraph.
[(2) Exception.--The requirement to impose
sanctions under paragraph (1) shall not include the
authority to impose sanctions relating to the
importation of goods under paragraph (8)(A) or (12) of
section 6(a) of the Iran Sanctions Act of 1996, and any
sanction relating to the importation of goods shall not
count for purposes of the requirement to impose
sanctions under paragraph (1).]
* * * * * * *
(h) Report on Determinations not to Impose Sanctions on
Persons who Allegedly Sell, Supply, or Transfer Precious Metals
to or From Iran.--
(1) In general.--Not later than 90 days after the
date of the enactment of Nuclear Iran Prevention Act of
2013, and every 90 days thereafter, the President shall
submit to the appropriate congressional committees a
report on each determination of the President during
the preceding 90-day period not to impose sanctions
under subsection (a) or (c) with respect to a person
who allegedly sells, supplies, or transfers precious
metals, directly or indirectly, to or from Iran,
together with the reasons for such determination.
(2) Form.--The report required by paragraph (1)
shall be submitted in unclassified form, but may
contain a classified annex, if necessary.
[(h)] (i) National Balance Sheet of Iran Defined.--For
purposes of this section, the term ``national balance sheet of
Iran'' refers to the ratio of the assets of the Government of
Iran to the liabilities of that Government.
SEC. 1246. IMPOSITION OF SANCTIONS WITH RESPECT TO THE PROVISION OF
UNDERWRITING SERVICES OR INSURANCE OR REINSURANCE
FOR ACTIVITIES OR PERSONS WITH RESPECT TO WHICH
SANCTIONS HAVE BEEN IMPOSED.
[(a) Imposition of Sanctions.--]
[(1) In general.--Except as provided]
(a) Imposition of Sanctions._Except as provided in this
section, the President shall impose 5 or more of the sanctions
described in section 6(a) of the Iran Sanctions Act of 1996
(Public Law 104-172; 50 U.S.C. 1701 note) with respect to a
person if the President determines that the person knowingly,
on or after the date that is 180 days after the date of the
enactment of this Act, provides underwriting services or
insurance or reinsurance--
[(A)] (1) for any activity with respect to Iran for
which sanctions have been imposed under this subtitle,
the International Emergency Economic Powers Act (50
U.S.C. 1701 et seq.), the Iran Sanctions Act of 1996,
the Comprehensive Iran Sanctions, Accountability, and
Divestment Act of 2010 (22 U.S.C. 8501 et seq.), the
Iran Threat Reduction and Syria Human Rights Act of
2012 (22 U.S.C. 8701 et seq.), the Iran, North Korea,
and Syria Nonproliferation Act (Public Law 106-178; 50
U.S.C. 1701 note), or any other provision of law
relating to the imposition of sanctions with respect to
Iran;
[(B)] (2) to or for any person--
[(i)] (A) with respect to, or for the
benefit of any activity in the energy,
shipping, or shipbuilding sectors of Iran for
which sanctions are imposed under this
subtitle;
[(ii)] (B) for the sale, supply, or
transfer to or from Iran of materials described
in section 1245(d) for which sanctions are
imposed under this subtitle; or
[(iii)] (C) designated for the imposition
of sanctions pursuant to the International
Emergency Economic Powers Act (50 U.S.C. 1701
et seq.) in connection with--
[(I)] (i) Iran's proliferation of
weapons of mass destruction or delivery
systems for weapons of mass
destruction; or
[(II)] (ii) Iran's support for
international terrorism; or
[(C)] (3) to or for any Iranian person included on
the list of specially designated nationals and blocked
persons maintained by the Office of Foreign Assets
Control of the Department of the Treasury (other than
an Iranian financial institution described in
subsection (b)).
[(2) Exception.--The requirement to impose
sanctions under paragraph (1) shall not include the
authority to impose sanctions relating to the
importation of goods under paragraph (8)(A) or (12) of
section 6(a) of the Iran Sanctions Act of 1996, and any
sanction relating to the importation of goods shall not
count for purposes of the requirement to impose
sanctions under paragraph (1).]
* * * * * * *
SEC. 1247. IMPOSITION OF SANCTIONS WITH RESPECT TO FOREIGN FINANCIAL
INSTITUTIONS THAT FACILITATE FINANCIAL TRANSACTIONS
ON BEHALF OF SPECIALLY DESIGNATED NATIONALS.
(a) * * *
* * * * * * *
(f) Persons Owned or Controlled by Specially Designated
Nationals.--
(1) In general.--The President shall impose
sanctions described in subsection (a) with respect to a
foreign financial institution, including but not
limited to a foreign central bank, that the President
determines has, on or after the date that is 90 days
after the date of the enactment of the Nuclear Iran
Prevention Act of 2013, knowingly facilitated a
significant financial transaction on behalf of any
person determined by the President to be directly owned
or controlled by an Iranian person included on the list
of specially designated nationals and blocked persons
maintained by the Office of Foreign Assets Control of
the Department of the Treasury (other than an Iranian
financial institution described in subsection (b)).
(2) Sense of Congress.--It is the sense of Congress
that the President routinely should determine on or
after the date of the enactment of the Nuclear Iran
Prevention Act of 2013 those persons that are directly
or indirectly owned or controlled by an Iranian person
included on the list of specially designated nationals
and blocked persons maintained by the Office of Foreign
Assets Control of the Department of the Treasury (other
than an Iranian financial institution described in
subsection (b)).
(3) Consideration of data from other countries and
nongovernmental organizations.--The President shall
consider credible data already obtained by other
countries and nongovernmental organizations in making
determinations described in paragraph (1).
[(f)] (g) Waiver.--
(1) * * *
* * * * * * *
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PORTS AND WATERWAYS SAFETY ACT
* * * * * * *
SEC. 16. PROHIBITION ON ENTRY AND OPERATION.
(a) In General.--No foreign vessel described in subsection
(b) shall enter or operate in the navigable waters of the
United States or transfer cargo in any port or place under the
jurisdiction of the United States.
(b) Vessels Described.--A vessel referred to in subsection
(a) is a foreign vessel--
(1) for which a Notice of Arrival is required to be
filed under section 160 of title 33, Code of Federal
Regulations, as in effect on the date of enactment of
the Nuclear Iran Prevention Act of 2013; and
(2) that is knowingly registered, pursuant to the
Geneva Convention on the High Seas (13 U.S.T. 2312;
TIAS 5200; 450 UNTS 82), by a ship registry that is
maintaining a registration of a vessel that is included
in the list published under subsection (c).
(c) Notification of Governments.--The Secretary of
Transportation, in consultation with the Secretary of State,
shall--
(1) maintain timely information on registrations of
all foreign vessels over 300 gross tons that are--
(A) owned or operated by or on behalf of--
(i) the National Iran Tanker
Company or the Islamic Republic of Iran
Shipping Line; or
(ii) any successor to an entity
referred to in clause (i); or
(B) otherwise owned or operated by or on
behalf of Iran;
(2) notify each government the agents or
instrumentalities of which are maintaining a
registration of a foreign vessel described in paragraph
(1), that all vessels registered under such
government's authority are prohibited from entering or
operating in the navigable waters of the United States
or transferring cargo in any port or place under the
jurisdiction of the United States; and
(3) publish in the Federal Register a list of
vessels described in paragraph (1), including periodic
updates of such list.
(d) Notification of Vessels.--
(1) In general.--Except as provided in paragraphs
(2) and (3), upon receiving a Notice of Arrival under
section 160 of title 33, Code of Federal Regulations
(as in effect on the date of enactment of the Nuclear
Iran Prevention Act of 2013) from a vessel described in
(b), the Secretary shall notify the master of such
vessel that the vessel may not enter or operate in the
navigable waters of the United States or transfer cargo
in any port or place under the jurisdiction of the
United States.
(2) Provisional entry.--The Secretary may allow
provisional entry of, or transfer of cargo from, a
foreign vessel described in subsection (b) if such
entry or transfer is necessary for the safety of the
vessel or persons aboard.
(3) Entry for due diligence.--The Secretary may
allow entry of, and transfer of cargo from, a vessel
described in subsection (b) if the master shows the
owner and operator of the vessel exercised due
diligence to avoid registration of the vessel by a
registry that registers vessels described in subsection
(c).
(e) Right of Innocent Passage.--This section shall not be
construed as authority to restrict the right of innocent
passage as recognized under international law.
(f) Foreign Vessel Defined.--In this section the term
``foreign vessel'' has the meaning given that term in section
2101 of title 46, United States Code.