S.1228 - Iran Oil Sanctions Act of 1995104th Congress (1995-1996)
|Sponsor:||Sen. D'Amato, Alfonse [R-NY] (Introduced 09/08/1995)|
|Committees:||Senate - Banking, Housing, and Urban Affairs | House - International Relations; Banking and Financial Services|
|Committee Reports:||S. Rept. 104-187|
|Latest Action:||House - 01/19/1996 Referred to the Subcommittee on Domestic and International Monetary Policy. (All Actions)|
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Text: S.1228 — 104th Congress (1995-1996)All Information (Except Text)
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Referred in House (12/21/1995)
[Congressional Bills 104th Congress] [From the U.S. Government Printing Office] [S. 1228 Referred in House (RFH)] 1st Session S. 1228 _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES December 21, 1995 Referred to the Committee on International Relations, and in addition to the Committee on Banking and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned _______________________________________________________________________ AN ACT To deter investment in the development of Iran's petroleum resources. 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 Oil Sanctions Act of 1995''. SEC. 2. FINDINGS. The Congress makes the following findings: (1) The efforts of the Government of Iran to acquire weapons of mass destruction and the means to deliver them and its support of international terrorism endanger the national security and foreign policy interests of the United States and those countries with which it shares common strategic and foreign policy objectives. (2) The objective of preventing the proliferation of weapons of mass destruction and international terrorism through existing multilateral and bilateral initiatives requires additional efforts to deny Iran the financial means to sustain its nuclear, chemical, biological, and missile weapons programs. SEC. 3. DECLARATION OF POLICY. The Congress declares that it is the policy of the United States to deny Iran the ability to support international terrorism and to fund the development and acquisition of weapons of mass destruction and the means to deliver them by limiting the development of petroleum resources in Iran. SEC. 4. IMPOSITION OF SANCTIONS. (a) In General.--Except as provided in subsection (d), the President shall impose one or more of the sanctions described in section 5 on a person subject to this section (in this Act referred to as a ``sanctioned person''), if the President determines that the person has, with actual knowledge, on or after the date of enactment of this Act, made an investment of more than $40,000,000 (or any combination of investments of at least $10,000,000 each, which in the aggregate exceeds $40,000,000 in any 12-month period), that significantly and materially contributed to the development of petroleum resources in Iran. (b) Persons Against Which the Sanctions Are To Be Imposed.--The sanctions described in subsection (a) shall be imposed on any person the President determines-- (1) has carried out the activities described in subsection (a); (2) is a successor entity to that person; (3) is a person that is a parent or subsidiary of that person if that parent or subsidiary with actual knowledge engaged in the activities which were the basis of that determination; and (4) is a person that is an affiliate of that person if that affiliate with actual knowledge engaged in the activities which were the basis of that determination and if that affiliate is controlled in fact by that person. (c) Publication in Federal Register.--The President shall cause to be published in the Federal Register a current list of persons that are subject to sanctions under subsection (a). The President shall remove or add the names of persons to the list published under this subsection as may be necessary. (d) Exceptions.--The President shall not be required to apply or maintain the sanctions under subsection (a)-- (1) to products or services provided under contracts entered into before the date on which the President publishes his intention to impose the sanction; or (2) to medicines, medical supplies, or other humanitarian items. SEC. 5. DESCRIPTION OF SANCTIONS. The sanctions to be imposed on a person under section 4(a) are as follows: (1) Export-import bank assistance for exports to sanctioned persons.--The President may direct the Export-Import Bank of the United States not to guarantee, insure, extend credit, or participate in the extension of credit in connection with the export of any goods or services to any sanctioned person. (2) Export sanction.--The President may order the United States Government not to issue any specific license and not to grant any other specific permission or authority to export any goods or technology to a sanctioned person under-- (A) the Export Administration Act of 1979; (B) the Arms Export Control Act; (C) the Atomic Energy Act of 1954; or (D) any other statute that requires the prior review and approval of the United States Government as a condition for the exportation of goods and services, or their re-export, to any person designated by the President under section 4(a). (3) Loans from united states financial institutions.--The United States Government may prohibit any United States financial institution from making any loan or providing any credit to any sanctioned person in an amount exceeding $10,000,000 in any 12-month period (or two or more loans of more than $5,000,000 each in such period) unless such person is engaged in activities to relieve human suffering within the meaning of section 203(b)(2) of the International Emergency Economic Powers Act. (4) Prohibitions on financial institutions.--The following prohibitions may be imposed against financial institutions sanctioned under section 4(a): (A) Designation as primary dealer.--Neither the Board of Governors of the Federal Reserve System nor the Federal Reserve Bank of New York may designate, or permit the continuation of any prior designation of, such financial institution as a primary dealer in United States Government debt instruments. (B) Government funds.--Such financial institution shall not serve as agent of the United States Government or serve as repository for United States Government funds. SEC. 6. ADVISORY OPINIONS. The Secretary of State may, upon the request of any person, issue an advisory opinion, to that person as to whether a proposed activity by that person would subject that person to sanctions under this Act. Any person who relies in good faith on such an advisory opinion which states that the proposed activity would not subject a person to such sanctions, and any person who thereafter engages in such activity, may not be made subject to such sanctions on account of such activity. SEC. 7. DURATION OF SANCTIONS; PRESIDENTIAL WAIVER. (a) Delay of Sanctions.-- (1) Consultations.--If the President makes a determination described in section 4(a) with respect to a foreign person, the Congress urges the President to initiate consultations immediately with the government with primary jurisdiction over that foreign person with respect to the imposition of sanctions pursuant to this Act. (2) Actions by government of jurisdiction.--In order to pursue such consultations with that government, the President may delay imposition of sanctions pursuant to this Act for up to 90 days. Following such consultations, the President shall immediately impose a sanction or sanctions unless the President determines and certifies to the Congress that the government has taken specific and effective actions, including, as appropriate, the imposition of appropriate penalties, to terminate the involvement of the foreign person in the activities that resulted in the determination by the President pursuant to section 4(a) concerning such person. (3) Additional delay in imposition of sanctions.--The President may delay the imposition of sanctions for up to an additional 90 days if the President determines and certifies to the Congress that the government with primary jurisdiction over the foreign person is in the process of taking the actions described in paragraph (2). (4) Report to congress.--Not later than 90 days after making a determination under section 4(a), the President shall submit to the Committee on Banking, Housing and Urban Affairs of the Senate and the Committee on International Relations of the House of Representatives a report which shall include information on the status of consultations with the appropriate foreign government under this subsection, and the basis for any determination under paragraph (3). (b) Duration of Sanctions..--The requirement to impose sanctions pursuant to section 4(a) shall remain in effect until the President determines that the sanctioned person is no longer engaging in the activity that led to the imposition of sanctions. (c) Presidential Waiver.--(1) The President may waive the requirement in section 4(a) to impose a sanction or sanctions on a person in section 4(b), and may waive the continued imposition of a sanction or sanctions under subsection (b) of this section, 15 days after the President determines and so reports to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on International Relations of the House of Representatives that it is important to the national interest of the United States to exercise such waiver authority. (2) Any such report shall provide a specific and detailed rationale for such determination, including-- (A) a description of the conduct that resulted in the determination; (B) in the case of a foreign person, an explanation of the efforts to secure the cooperation of the government with primary jurisdiction of the sanctioned person to terminate or, as appropriate, penalize the activities that resulted in the determination; (C) an estimate as to the significance of the investment to Iran's ability to develop its petroleum resources; and (D) a statement as to the response of the United States in the event that such person engages in other activities that would be subject to section 4(a). SEC. 8. TERMINATION OF SANCTIONS. The sanctions requirement of section 4 shall no longer have force or effect if the President determines and certifies to the appropriate congressional committees that Iran-- (1) has ceased its efforts to design, develop, manufacture, or acquire-- (A) a nuclear explosive device or related materials and technology; (B) chemical and biological weapons; or (C) ballistic missiles and ballistic missile launch technology; and (2) has been removed from the list of state sponsors of international terrorism under section 6(j) of the Export Administration Act of 1979. SEC. 9. REPORT REQUIRED. The President shall ensure the continued transmittal to Congress of reports describing-- (1) the nuclear and other military capabilities of Iran, as required by section 601(a) of the Nuclear Non-Proliferation Act of 1978 and section 1607 of the National Defense Authorization Act, Fiscal Year 1993; and (2) the support provided by Iran for acts of international terrorism, as part of the Department of State's annual report on international terrorism. SEC. 10. DEFINITIONS. As used in this Act: (1) Appropriate congressional committees.--The term ``appropriate congressional committees'' means the Committees on Banking, Housing, and Urban Affairs and Foreign Relations of the Senate and the Committees on Banking and Financial Services and International Relations of the House of Representatives. (2) Financial institution.--The term ``financial institution'' includes-- (A) a depository institution (as defined in section 3(c)(1) of the Federal Deposit Insurance Act), including a branch or agency of a foreign bank (as defined in section 1(b)(7) of the International Banking Act of 1978); (B) a credit union; (C) a securities firm, including a broker or dealer; (D) an insurance company, including an agency or underwriter; (E) any other company that provides financial services; or (F) any subsidiary of such financial institution. (3) Investment.--The term ``investment'' means-- (A) the entry into a contract that includes responsibility for the development of petroleum resources located in Iran, or the entry into a contract providing for the general supervision and guarantee of another person's performance of such a contract; (B) the purchase of a share of ownership in that development; or (C) the entry into a contract providing for participation in royalties, earnings, or profits in that development, without regard to the form of the participation. (4) Person.--The term ``person'' means a natural person as well as a corporation, business association, partnership, society, trust, any other nongovernmental entity, organization, or group, and any governmental entity operating as a business enterprise, and any successor of any such entity. (5) Petroleum resources.--The term ``petroleum resources'' includes petroleum and natural gas resources. SEC. 11. APPLICATION OF THE ACT TO LIBYA. The sanctions of this Act, including the terms and conditions for the imposition, duration, and termination of sanctions, shall apply to persons making investments for the development of petroleum resources in Libya in the same manner as those sanctions apply under this Act to persons making investments for such development in Iran. Passed the Senate December 20, 1995. Attest: KELLY D. JOHNSTON, Secretary.