[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 282 Referred in Senate (RFS)]
109th CONGRESS
2d Session
H. R. 282
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 27, 2006
Received; read twice and referred to the Committee on Foreign Relations
_______________________________________________________________________
AN ACT
To hold the current regime in Iran accountable for its threatening
behavior and to support a transition to democracy in Iran.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Iran Freedom Support Act''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--CODIFICATION OF SANCTIONS AGAINST IRAN
Sec. 101. Codification of sanctions.
Sec. 102. Liability of parent companies for violations of sanctions by
foreign entities.
TITLE II--AMENDMENTS TO THE IRAN AND LIBYA SANCTIONS ACT OF 1996 AND
OTHER PROVISIONS RELATED TO INVESTMENT IN IRAN
Sec. 201. Multilateral regime.
Sec. 202. Imposition of sanctions.
Sec. 203. Termination of sanctions.
Sec. 204. Sunset.
Sec. 205. Clarification and expansion of definitions.
Sec. 206. United States pension plans.
Sec. 207. Technical and conforming amendments.
TITLE III--DIPLOMATIC EFFORTS TO CURTAIL IRANIAN NUCLEAR PROLIFERATION
AND SPONSORSHIP OF INTERNATIONAL TERRORISM
Sec. 301. Diplomatic efforts.
Sec. 302. Strengthening the Nuclear Nonproliferation Treaty.
TITLE IV--DEMOCRACY IN IRAN
Sec. 401. Declaration of Congress regarding United States policy toward
Iran.
Sec. 402. Assistance to support democracy in Iran.
Sec. 403. Waiver of certain export license requirements.
TITLE I--CODIFICATION OF SANCTIONS AGAINST IRAN
SEC. 101. CODIFICATION OF SANCTIONS.
(a) Codification of Sanctions.--United States sanctions, controls,
and regulations with respect to Iran imposed pursuant to Executive
Order No. 12957, sections 1(b) through (1)(g) and sections (2) through
(6) of Executive Order No. 12959, and sections 2 and 3 of Executive
Order No. 13059 (relating to exports and certain other transactions
with Iran) as in effect on January 1, 2006, shall remain in effect
until the President certifies to the Committee on International
Relations of the House of Representatives and the Committee on Foreign
Relations of the Senate that the Government of Iran has verifiably
dismantled its weapons of mass destruction programs.
(b) No Effect on Other Sanctions Relating to Support for Acts of
International Terrorism.--Subsection (a) shall have no effect on United
States sanctions, controls, and regulations relating to a determination
under section 6(j)(1)(A) of the Export Administration Act of 1979 (50
U.S.C. App. 2405(j)(1)(A)), section 620A(a) of the Foreign Assistance
Act of 1961 (22 U.S.C. 2371(a)), or section 40(d) of the Arms Export
Control Act (22 U.S.C. 2780(d)) relating to support for acts of
international terrorism by the Government of Iran, as in effect on
January 1, 2006.
SEC. 102. LIABILITY OF PARENT COMPANIES FOR VIOLATIONS OF SANCTIONS BY
FOREIGN ENTITIES.
(a) In General.--In any case in which an entity engages in an act
outside the United States which, if committed in the United States or
by a United States person, would violate Executive Order No. 12959 of
May 6, 1995, Executive Order No. 13059 of August 19, 1997, or any other
prohibition on transactions with respect to Iran that is imposed under
the International Emergency Economic Powers Act (50 U.S.C. 1701 et
seq.) and if that entity was created or availed of for the purpose of
engaging in such an act, the parent company of that entity shall be
subject to the penalties for such violation to the same extent as if
the parent company had engaged in that act.
(b) Definitions.--In this section--
(1) an entity is a ``parent company'' of another entity if
it owns, directly or indirectly, more than 50 percent of the
equity interest in that other entity and is a United States
person; and
(2) the term ``entity'' means a partnership, association,
trust, joint venture, corporation, or other organization.
TITLE II--AMENDMENTS TO THE IRAN AND LIBYA SANCTIONS ACT OF 1996 AND
OTHER PROVISIONS RELATED TO INVESTMENT IN IRAN
SEC. 201. MULTILATERAL REGIME.
(a) Reports to Congress.--Section 4(b) of the Iran and Libya
Sanctions Act of 1996 (50 U.S.C. 1701 note) is amended to read as
follows:
``(b) Reports to Congress.--Not later than six months after the
date of the enactment of the Iran Freedom Support Act and every six
months thereafter, the President shall submit to the appropriate
congressional committees a report regarding specific diplomatic efforts
undertaken pursuant to subsection (a), the results of those efforts,
and a description of proposed diplomatic efforts pursuant to such
subsection. Each report shall include--
``(1) a list of the countries that have agreed to undertake
measures to further the objectives of section 3 with respect to
Iran;
``(2) a description of those measures, including--
``(A) government actions with respect to public or
private entities (or their subsidiaries) located in
their territories, that are engaged in Iran;
``(B) any decisions by the governments of these
countries to rescind or continue the provision of
credits, guarantees, or other governmental assistance
to these entities; and
``(C) actions taken in international fora to
further the objectives of section 3;
``(3) a list of the countries that have not agreed to
undertake measures to further the objectives of section 3 with
respect to Iran, and the reasons therefor; and
``(4) a description of any memorandums of understanding,
political understandings, or international agreements to which
the United States has acceded which affect implementation of
this section or section 5(a).''.
(b) Waiver.--Section 4(c) of such Act (50 U.S.C. 1701 note) is
amended to read as follows:
``(c) Waiver.--
``(1) In general.--The President may, on a case by case
basis, waive for a period of not more than six months the
application of section 5(a) with respect to a national of a
country, if the President certifies to the appropriate
congressional committees at least 30 days before such waiver is
to take effect that--
``(A) such waiver is vital to the national security
interests of the United States; and
``(B) the country of the national has undertaken
substantial measures to prevent the acquisition and
development of weapons of mass destruction by the
Government of Iran.
``(2) Subsequent renewal of waiver.--If the President
determines that, in accordance with paragraph (1), such a
waiver is appropriate, the President may, at the conclusion of
the period of a waiver under paragraph (1), renew such waiver
for subsequent periods of not more than six months each.''.
(c) Investigations.--Section 4 of such Act (50 U.S.C. 1701 note) is
amended by adding at the end the following new subsection:
``(f) Investigations.--
``(1) In general.--The President shall initiate an
investigation into the possible imposition of sanctions against
a person upon receipt by the United States of credible
information indicating that such person is engaged in activity
related to investment in Iran as described in section 5(a).
``(2) Determination and notification.--
``(A) In general.--Not later than 180 days after an
investigation is initiated in accordance with paragraph
(1), the President shall determine, pursuant to section
5(a), whether or not to impose sanctions against a
person engaged in activity related to investment in
Iran as described in such section as a result of such
activity and shall notify the appropriate congressional
committees of the basis for such determination.
``(B) Extension.--If the President is unable to
make a determination under subparagraph (A), the
President shall notify the appropriate congressional
committees and shall extend such investigation for a
subsequent period, not to exceed 180 days, after which
the President shall make the determination required
under such subparagraph and shall notify the
appropriate congressional committees of the basis for
such determination in accordance with such
subparagraph.
``(3) Determinations regarding pending investigations.--Not
later than 90 days after the date of the enactment of this Act,
the President shall, with respect to any investigation that was
pending as of January 1, 2006, concerning a person engaged in
activity related to investment in Iran as described in section
5(a), determine whether or not to impose sanctions against such
person as a result of such activity and shall notify the
appropriate congressional committees of the basis for such
determination.
``(4) Publication.--Not later than 10 days after the
President notifies the appropriate congressional committees
under paragraphs (2) and (3), the President shall ensure
publication in the Federal Register of the identification of
the persons against which the President has made a
determination that the imposition of sanctions is appropriate,
together with an explanation for such determination.''.
SEC. 202. IMPOSITION OF SANCTIONS.
(a) Sanctions With Respect to Development of Petroleum Resources.--
Section 5(a) of the Iran and Libya Sanctions Act of 1996 (50 U.S.C.
1701 note) is amended--
(1) in the heading, by striking ``to Iran'' and inserting
``to the Development of Petroleum Resources of Iran'';
(2) by striking ``(6)'' and inserting ``(5)''; and
(3) by striking ``with actual knowledge,''.
(b) Sanctions With Respect to Development of Weapons of Mass
Destruction or Other Military Capabilities.--Section 5(b) of such Act
(50 U.S.C. 1701 note) is amended to read as follows:
``(b) Mandatory Sanctions With Respect to Development of Weapons of
Mass Destruction or Other Military Capabilities.--Notwithstanding any
other provision of law, the President shall impose two or more of the
sanctions described in paragraphs (1) through (5) of section 6 if the
President determines that a person has, on or after the date of the
enactment of this Act, exported, transferred, or otherwise provided to
Iran any goods, services, technology, or other items knowing that the
provision of such goods, services, technology, or other items would
contribute to the ability of Iran to--
``(1) acquire or develop chemical, biological, or nuclear
weapons or related technologies; or
``(2) acquire or develop destabilizing numbers and types of
advanced conventional weapons.''.
(c) Persons Against Which the Sanctions Are to Be Imposed.--Section
5(c)(2) of such Act (50 U.S.C. 1701 note) is amended--
(1) in subparagraph (B), by striking ``, with actual
knowledge,'' and by striking ``or'' at the end;
(2) in subparagraph (C), by striking ``, with actual
knowledge,'' and by striking the period at the end and
inserting ``; or''; and
(3) by adding after subparagraph (C) the following new
subparagraph:
``(D) is a private or government lender, insurer,
underwriter, or guarantor of the person referred to in
paragraph (1) if that private or government lender,
insurer, underwriter, or guarantor engaged in the
activities referred to in paragraph (1).''.
(d) Effective Date.--The amendments made by this section shall
apply with respect to actions taken on or after March 15, 2006.
SEC. 203. TERMINATION OF SANCTIONS.
Section 8(a) of the Iran and Libya Sanctions Act of 1996 (50 U.S.C.
1701 note) is amended--
(1) in paragraph (1)(C), by striking ``and'' at the end;
(2) in paragraph (2), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(3) poses no significant threat to United States national
security, interests, or allies.''.
SEC. 204. SUNSET.
Section 13 of the Iran and Libya Sanctions Act of 1996 (50 U.S.C.
1701 note) is amended--
(1) in the section heading, by striking ``; sunset'';
(2) in subsection (a), by striking the subsection
designation and heading; and
(3) by striking subsection (b).
SEC. 205. CLARIFICATION AND EXPANSION OF DEFINITIONS.
(a) Person.--Section 14(14)(B) of the Iran and Libya Sanctions Act
of 1996 (50 U.S.C. 1701 note) is amended--
(1) by inserting after ``trust,'' the following:
``financial institution, insurer, underwriter, guarantor, any
other business organization, including any foreign subsidiaries
of the foregoing,''; and
(2) by inserting before the semicolon the following: ``,
such as an export credit agency''.
(b) Petroleum Resources.--Section 14(15) of the Iran and Libya
Sanctions Act of 1996 (50 U.S.C. 1701 note) is amended by inserting
after ``petroleum'' the second place it appears, the following: ``,
petroleum by-products,''.
SEC. 206. UNITED STATES PENSION PLANS.
(a) Findings.--Congress finds the following:
(1) The United States and the international community face
no greater threat to their security than the prospect of rogue
regimes who support international terrorism obtaining weapons
of mass destruction, and particularly nuclear weapons.
(2) Iran is the leading state sponsor of international
terrorism and is close to achieving nuclear weapons capability
but has paid no price for nearly twenty years of deception over
its nuclear program. Foreign entities that have invested in
Iran's energy sector, despite Iran's support of international
terrorism and its nuclear program, have afforded Iran a free
pass while many United States entities have unknowingly
invested in those same foreign entities.
(3) United States investors have a great deal at stake in
preventing Iran from acquiring nuclear weapons.
(4) United States investors can have considerable influence
over the commercial decisions of the foreign entities in which
they have invested.
(b) Publication in Federal Register.--Not later than six months
after the date of the enactment of this Act and every six months
thereafter, the Secretary of State shall ensure publication in the
Federal Register of a list of all United States and foreign entities
that have invested more than $20,000,000 in Iran's energy sector
between August 5, 1996, and the date of such publication. Such list
shall include an itemization of individual investments of each such
entity, including the dollar value, intended purpose, and current
status of each such investment.
(c) Sense of Congress Relating to Divestiture From Iran.--It is the
sense of Congress that, upon publication of a list in the relevant
Federal Register under subsection (b), managers of United States
Government pension plans or thrift savings plans, managers of pension
plans maintained in the private sector by plan sponsors in the United
States, and managers of mutual funds sold or distributed in the United
States should, to the extent consistent with the legal and fiduciary
duties otherwise imposed on them, immediately initiate efforts to
divest all investments of such plans or funds in any entity included on
the list.
(d) Sense of Congress Relating to Prohibition on Future
Investment.--It is the sense of Congress that, upon publication of a
list in the relevant Federal Register under subsection (b), there
should be, to the extent consistent with the legal and fiduciary duties
otherwise imposed on them, no future investment in any entity included
on the list by managers of United States Government pension plans or
thrift savings plans, managers of pension plans maintained in the
private sector by plan sponsors in the United States, and managers of
mutual funds sold or distributed in the United States.
SEC. 207. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Findings.--Section 2 of the Iran and Libya Sanctions Act of
1996 (50 U.S.C. 1701 note) is amended by striking paragraph (4).
(b) Declaration of Policy.--Section 3 of the Iran and Libya
Sanctions Act of 1996 (50 U.S.C. 1701 note) is amended--
(1) in subsection (a), by striking ``(a) Policy With
Respect to Iran.--''; and
(2) by striking subsection (b).
(c) Termination of Sanctions.--Section 8 of the Iran and Libya
Sanctions Act of 1996 (50 U.S.C. 1701 note) is amended--
(1) in subsection (a), by striking ``(a) Iran.--''; and
(2) by striking subsection (b).
(d) Duration of Sanctions; Presidential Waiver.--Section 9(c)(2)(C)
of the Iran and Libya Sanctions Act of 1996 (50 U.S.C. 1701 note) is
amended to read as follows:
``(C) an estimate of the significance of the
provision of the items described in section 5(a) or
section 5(b) to Iran's ability to, respectively,
develop its petroleum resources or its weapons of mass
destruction or other military capabilities; and''.
(e) Reports Required.--Section 10(b)(1) of the Iran and Libya
Sanctions Act of 1996 (50 U.S.C. 1701 note) is amended by striking
``and Libya'' each place it appears.
(f) Definitions.--Section 14 of the Iran and Libya Sanctions Act of
1996 (50 U.S.C. 1701 note) is amended--
(1) in paragraph (9)--
(A) in the matter preceding subparagraph (A), by--
(I) striking ``, or with the Government of
Libya or a nongovernmental entity in Libya,'';
and
(ii) by striking ``nongovenmental'' and
inserting ``nongovernmental''; and
(B) in subparagraph (A), by striking ``or Libya (as
the case may be)'';
(2) by striking paragraph (12); and
(3) by redesignating paragraphs (13), (14), (15), (16), and
(17) as paragraphs (12), (13), (14), (15), and (16),
respectively.
(g) Short Title.--
(1) In general.--Section 1 of the Iran and Libya Sanctions
Act of 1996 (50 U.S.C. 1701 note) is amended by striking ``and
Libya''.
(2) References.--Any reference in any other provision of
law, regulation, document, or other record of the United States
to the ``Iran and Libya Sanctions Act of 1996'' shall be deemed
to be a reference to the ``Iran Sanctions Act of 1996''.
TITLE III--DIPLOMATIC EFFORTS TO CURTAIL IRANIAN NUCLEAR PROLIFERATION
AND SPONSORSHIP OF INTERNATIONAL TERRORISM
SEC. 301. DIPLOMATIC EFFORTS.
(a) Sense of Congress Relating to United Nations Security Council
and the International Atomic Energy Agency.--It is the sense of
Congress that the President should instruct the United States Permanent
Representative to the United Nations to work to secure support at the
United Nations Security Council for a resolution that would impose
sanctions on Iran as a result of its repeated breaches of its nuclear
nonproliferation obligations, to remain in effect until Iran has
verifiably dismantled its weapons of mass destruction programs.
(b) Prohibition on Assistance to Countries That Invest in the
Energy Sector of Iran.--
(1) Withholding of assistance.--If, on or after April 13,
2005, a foreign person (as defined in section 14 of the Iran
Sanctions Act of 1996 (50 U.S.C. 1701 note), as renamed
pursuant to section 208(g)(1)) or an agency or instrumentality
of a foreign government has more than $20,000,000 invested in
Iran's energy sector, the President shall, until the date on
which such person or agency or instrumentality of such
government terminates such investment, withhold assistance
under the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et
seq.) to the government of the country to which such person
owes allegiance or to which control is exercised over such
agency or instrumentality.
(2) Waiver.--Assistance prohibited by this section may be
furnished to the government of a foreign country described in
subsection (a) if the President determines that furnishing such
assistance is important to the national security interests of
the United States, furthers the goals described in this Act,
and, not later that 15 days before obligating such assistance,
notifies the Committee on International Relations of the House
of Representatives, the Committee on Foreign Relations of the
Senate, the Committee on Appropriations of the House of
Representatives, and the Committee on Appropriations of the
Senate of such determination and submits to such committees a
report that includes--
(A) a statement of the determination;
(B) a detailed explanation of the assistance to be
provided;
(C) the estimated dollar amount of the assistance;
and
(D) an explanation of how the assistance furthers
United States national security interests.
SEC. 302. STRENGTHENING THE NUCLEAR NONPROLIFERATION TREATY.
(a) Findings.--Congress finds the following:
(1) Article IV of the Treaty on the Non-Proliferation of
Nuclear Weapons (commonly referred to as the ``Nuclear
Nonproliferation Treaty'' or ``NPT'') states that countries
that are parties to the Treaty have the ``inalienable right . .
. to develop research, production and use of nuclear energy for
peaceful purposes without discrimination and in conformity with
articles I and II of this Treaty.''.
(2) Iran has manipulated Article IV of the Nuclear
Nonproliferation Treaty to acquire technologies needed to
manufacture nuclear weapons under the guise of developing
peaceful nuclear technology.
(3) Legal authorities, diplomatic historians, and officials
closely involved in the negotiation and ratification of the
Nuclear Nonproliferation Treaty state that the Treaty neither
recognizes nor protects such a per se right to all nuclear
technology, such as enrichment and reprocessing, but rather
affirms that the right to the use of peaceful nuclear energy is
qualified.
(b) Declaration of Congress Regarding United States Policy to
Strengthen the Nuclear Nonproliferation Treaty.--Congress declares that
it should be the policy of the United States to support diplomatic
efforts to end the manipulation of Article IV of the Nuclear
Nonproliferation Treaty, as undertaken by Iran, without undermining the
Treaty itself.
TITLE IV--DEMOCRACY IN IRAN
SEC. 401. DECLARATION OF CONGRESS REGARDING UNITED STATES POLICY TOWARD
IRAN.
(a) In General.--Congress declares that it should be the policy of
the United States to support independent human rights and peaceful pro-
democracy forces in Iran.
(b) Rule of Construction.--Nothing in this Act shall be construed
as authorizing the use of force against Iran.
SEC. 402. ASSISTANCE TO SUPPORT DEMOCRACY IN IRAN.
(a) Authorization.--
(1) In general.--The President is authorized to provide
financial and political assistance (including the award of
grants) to foreign and domestic individuals, organizations, and
entities that support democracy and the promotion of democracy
in Iran. Such assistance may include the award of grants to
eligible independent pro-democracy radio and television
broadcasting organizations that broadcast into Iran.
(2) Limitation on assistance.--In accordance with the rule
of construction described in subsection (b) of section 401,
none of the funds authorized under this section shall be used
to support the use of force against Iran.
(b) Eligibility for Assistance.--Financial and political assistance
under this section may be provided only to an individual, organization,
or entity that--
(1) officially opposes the use of violence and terrorism
and has not been designated as a foreign terrorist organization
under section 219 of the Immigration and Nationality Act (8
U.S.C. 1189) at any time during the preceding four years;
(2) advocates the adherence by Iran to nonproliferation
regimes for nuclear, chemical, and biological weapons and
materiel;
(3) is dedicated to democratic values and supports the
adoption of a democratic form of government in Iran;
(4) is dedicated to respect for human rights, including the
fundamental equality of women;
(5) works to establish equality of opportunity for people;
and
(6) supports freedom of the press, freedom of speech,
freedom of association, and freedom of religion.
(c) Funding.--The President may provide assistance under this
section using--
(1) funds available to the Middle East Partnership
Initiative (MEPI), the Broader Middle East and North Africa
Initiative, and the Human Rights and Democracy Fund; and
(2) amounts made available pursuant to the authorization of
appropriations under subsection (g).
(d) Notification.--Not later than 15 days before each obligation of
assistance under this section, and in accordance with the procedures
under section 634A of the Foreign Assistance Act of 1961 (22 U.S.C.
2394-l), the President shall notify the Committee on International
Relations and the Committee on Appropriations of the House of
Representatives and the Committee on Foreign Relations and the
Committee on Appropriations of the Senate. Such notification shall
include, as practicable, the types of programs supported by such
assistance and the recipients of such assistance.
(e) Sense of Congress Regarding Diplomatic Assistance.--It is the
sense of Congress that--
(1) contacts should be expanded with opposition groups in
Iran that meet the criteria under subsection (b);
(2) support for a transition to democracy in Iran should be
expressed by United States representatives and officials in all
appropriate international fora;
(3) efforts to bring a halt to the nuclear weapons program
of Iran, including steps to end the supply of nuclear
components or fuel to Iran, should be intensified, with
particular attention focused on the cooperation regarding such
program--
(A) between the Government of Iran and the
Government of the Russian Federation; and
(B) between the Government of Iran and individuals
from China and Pakistan, including the network of Dr.
Abdul Qadeer (A. Q.) Khan; and
(4) officials and representatives of the United States
should--
(A) strongly and unequivocally support indigenous
efforts in Iran calling for free, transparent, and
democratic elections; and
(B) draw international attention to violations by
the Government of Iran of human rights, freedom of
religion, freedom of assembly, and freedom of the
press.
(f) Authorization of Appropriations.--There is authorized to be
appropriated to the Department of State such sums as may be necessary
to carry out this section.
SEC. 403. WAIVER OF CERTAIN EXPORT LICENSE REQUIREMENTS.
The Secretary of State may, in consultation with the Secretary of
Commerce, waive the requirement to obtain a license for the export to,
or by, any person to whom the Department of State has provided a grant
under a program to promote democracy or human rights abroad, any item
which is commercially available in the United States without government
license or permit, to the extent that such export would be used
exclusively for carrying out the purposes of the grant.
Passed the House of Representatives April 26, 2006.
Attest:
KAREN L. HAAS,
Clerk.