Library / Laws / 113th / hr / H.R. 850 / Referred from Senate
IIB
113th CONGRESS
1st Session
H. R. 850
IN THE SENATE OF THE UNITED
STATES
August 1, 2013
Received; read twice and referred to the
Committee on Banking, Housing, and Urban
Affairs
AN ACT
To impose additional human rights and
economic and financial sanctions with respect to Iran, and for other
purposes.
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. Transfer to Iran of goods, services, or technology
that would materially contribute to Iran’s ability to mine or mill
uranium.
Sec. 202. 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. Rule of construction.
Sec. 408. Implementation; penalties.
Sec. 409. Severability.
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.
I
Human
rights and terrorism sanctions
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).
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
(A)
In
general
Except as provided in this section, 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.
(B)
Exception
The authority to impose sanctions under
subparagraph (A) shall not include the authority to impose sanctions relating
to the importation of goods.
(C)
Good
defined
In this paragraph,
the term good has the meaning given that term in section 16 of
the Export Administration Act of 1979 (50 U.S.C. App. 2415) (as
continued in effect pursuant to the International Emergency Economic Powers Act
(50 U.S.C. 1701 et
seq.)).
.
(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.
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:
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.
.
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)
Additional
report
Section 401 of the
Iran Threat Reduction and Syria Human Rights Act of 2012 (Public Law
112–158; 126 Stat. 1251), as amended by this section, is
further amended by adding at the end the following new subsection:
(d)
Additional
report
(1)
In
general
Not later than 180 days after the date of the enactment
of 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) or any family member of such person has facilitated deceptive
transactions for or on behalf of any person subject to United States sanctions
concerning Iran in violation of Executive Order 13608 of May 1, 2012 (77 Fed.
Reg. 26409; 50
U.S.C. 1701 note) or any other provision of law.
(2)
Family member
defined
In this subsection, the term family member
includes, with respect to a person, any relative of such person to the third
degree of
consanguinity.
.
(e)
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..
(f)
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.
.
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.
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.
II
Economic and
financial sanctions
A
Amendments to Iran
Sanctions Act of 1996
201.
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) 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
paragraph:
(3)
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
amendments
Section 5 of such
Act is amended in subsection (b)(3), (c), and (f) by striking paragraph
(1) or (2) each place it appears and inserting paragraph (1),
(2), or (3).
202.
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.
B
Amendments to
Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 and
Iran Threat Reduction and Syria Human Rights Act of 2012
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.
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 respect the decision of any State or
local government to divest from or prohibit the investment of assets of the
State or local government in a person described in subsection (c) or to impose
disclosure and transparency requirements on any person subject to the
jurisdiction of such government, except with respect to an activity that is
exempt, licensed, or otherwise authorized by a Federal department or
agency.
(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;
or
(3) to impose disclosure and transparency
requirements on any person subject to the jurisdiction of such government,
except with respect to an activity that is exempt, licensed, or otherwise
authorized by a Federal department or agency.
(c)
Persons
described
A person described in this subsection is a person with
respect to which sanctions have been, and continue to be, imposed pursuant
to—
(1) section 104(c) of this Act;
(2) section 5 of the
Iran Sanctions Act of 1996 (50 U.S.C. 1701 note);
(3) section 1245(d) of
the National Defense Authorization Act for Fiscal Year 2012 (22 U.S.C.
8513a(d)); or
(4) sections 1244,
1245, 1246 or 1247 of the National Defense Authorization Act for Fiscal Year
2013 (22 U.S.C.
8803, 8804, 8805, or
8806).
.
(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
subsection (h) and by redesignating subsections (i) and (j) as subsections (h)
and (i), respectively; and
(4) in paragraph (1)
of subsection (i) (as redesignated by paragraph (3) of this subsection), 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.
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.
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:
220A.
Imposition of
sanctions with respect to certain transactions in foreign currencies
(a)
In
general
Except as provided in this section, 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 (c);
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
(c).
(b)
Exception
The authority to impose sanctions under
subsection (a)(2) shall not include the authority to impose sanctions relating
to the importation of goods.
(c)
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).
(d)
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.
(e)
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.
(f)
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)
Good
The term good has the
meaning given that term in section 16 of the Export Administration Act of 1979
(50 U.S.C. App. 2415) (as
continued in effect pursuant to the International Emergency Economic Powers Act
(50 U.S.C. 1701 et
seq.)).
(5)
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)).
(6)
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).
(7)
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).
(8)
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.
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:
225.
Sanctions with
respect to certain transactions with Iran
(a)
Authorization of
sanctions
(1)
In
general
Except as 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)
Exception
(A)
In
general
The authority to impose sanctions under paragraph (1)
shall not include the authority to impose sanctions relating to the importation
of goods.
(B)
Good
In
this paragraph, the term good has the meaning given that term in
section 16 of the Export Administration Act of 1979 (50 U.S.C. App.
2415) (as continued in effect pursuant to the International
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.)).
(3)
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.
.
C
Other
matters
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.
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; and
(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.
(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.
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.
.
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).
.
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 by subparagraph (B) of this paragraph)—
(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
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.
227.
Conditions for
entry and operation of vessels
(a)
In
general
The Ports and Waters Safety Act (33 U.S.C. 1221 et seq.) is amended
by adding at the end the following:
16.
Prohibition on
entry and operation
(a)
Prohibition
(1)
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.
(2)
Limitation on
Application
Paragraph (1)
shall not apply with respect to a vessel described in subsection (b)(2) on and
after any date on which the Secretary of State determines that the vessel is no
longer registered as described in that subsection. The Secretary of State shall
publish a notice of each such determination in the Federal Register.
(b)
Vessels
described
A vessel referred to in subsection (a) is a foreign
vessel 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
that—
(1) is on a list of
vessels published in Federal Register under subsection (c)(2); or
(2) more than 180 days
after the publication of such a list, is registered, pursuant to the Geneva
Convention on the High Seas (13 U.S.T. 2312; TIAS 5200; 450 UNTS 82), by a
government the agents or instrumentalities of which are maintaining a
registration of a vessel that is included in such list.
(c)
Information and
publication
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; and
(2) publish in the
Federal Register a list of vessels described in paragraph (1), including
periodic updates of such list.
(d)
Notification of
governments
The Secretary of State shall notify each government
the agents or instrumentalities of which are maintaining a registration of a
foreign vessel that is included on the list published under subsection (c)(2),
that all vessels registered under such government’s authority are subject to
the prohibition under subsection (a) if more than 180 days after such
publication the government continues to maintain a registration for a vessel
that is included on the list published under subsection (c)(2).
(e)
Notification of
vessels
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, unless—
(1) the Secretary has
made a determination described in subsection (a)(2); or
(2) the Secretary
allows provisional entry of the vessel, or transfer of cargo from the vessel,
under subsection (f).
(f)
Provisional
entry or cargo transfer
Notwithstanding subsection (e), 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.
(g)
Right of
innocent passage
This section shall not be construed as authority
to restrict the right of innocent passage as recognized under international
law.
(h)
Foreign vessel
defined
In this section the term foreign vessel
has the meaning given that term in
section
110 of title 46, United States
Code.
.
(b)
Deadline for
publication
The Secretary shall publish a list under section
16(c)(2) of the Ports and Waterways Safety Act, as amended by this section, by
not later than 180 days after the date of the enactment of this Act.
(c)
Conforming
Amendments
(1) Section 13(e) of
the Ports and Waterways Safety Act (33 U.S.C. 1232(e)) is amended by
striking section 9 and inserting sections 9 and
16.
(2) Section 4(b)(2) of
the Ports and Waterways Safety Act (33 U.S.C. 1223(b)(2)) is amended by
striking section 9 and inserting section 9 or
16.
III
Additional
authorities to prevent censorship activities in Iran
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.
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).
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.
304.
Sense of
Congress on availability of consumer communication technologies in
Iran
It is the sense of
Congress that—
(1) the 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 State should
promote the availability of certain consumer communication technologies to
Iranian civil society and the Iranian people.
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.
IV
Reports and other
matters
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.
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).
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.
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.
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) that are subject to a deadline for submission consisting of the
same unit of time may be consolidated into a single report that is submitted to
Congress pursuant to such deadline.
(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.).
(d)
Effective
date
This section takes
effect on the date of the enactment of this Act and applies with respect to
reports required to be submitted to Congress under the provisions of law
described in subsection (c) on or after such date of enactment.
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.
.
407.
Rule of
construction
Nothing in this
Act or any amendment made by this Act shall be construed to apply with respect
to—
(1) any activity
relating to a project described in subsection (a) of section 603 of the Iran
Threat Reduction and Syria Human Rights Act of 2012 (22 U.S.C. 8783) to
which the exception under that section applies at the time of the activity; or
(2) any authorized intelligence activity of the
United States.
408.
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)).
409.
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.
Passed the House of
Representatives July 31, 2013.
Karen L. Haas,
Clerk