Text: H.R.2194 — 111th Congress (2009-2010)All Information (Except Text)

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Public Law No: 111-195 (07/01/2010)

 
[111th Congress Public Law 195]
[From the U.S. Government Printing Office]



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    COMPREHENSIVE IRAN SANCTIONS, ACCOUNTABILITY, AND DIVESTMENT ACT
                                 OF 2010

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Public Law 111-195
111th Congress

                                 An Act


 
    To amend the Iran Sanctions Act of 1996 to enhance United States 
diplomatic efforts with respect to Iran by expanding economic sanctions 
          against Iran. <<NOTE: July 1, 2010 -  [H.R. 2194]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Comprehensive 
Iran Sanctions, Accountability, and Divestment Act of 2010.>> 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) <<NOTE: 22 USC 8501 note.>>  Short Title.--This Act may be cited 
as the ``Comprehensive Iran Sanctions, Accountability, and Divestment 
Act of 2010''.

    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Sense of Congress regarding the need to impose additional 
           sanctions with respect to Iran.

                           TITLE I--SANCTIONS

Sec. 101. Definitions.
Sec. 102. Expansion of sanctions under the Iran Sanctions Act of 1996.
Sec. 103. Economic sanctions relating to Iran.
Sec. 104. Mandatory sanctions with respect to financial institutions 
           that engage in certain transactions.
Sec. 105. Imposition of sanctions on certain persons who are responsible 
           for or complicit in human rights abuses committed against 
           citizens of Iran or their family members after the June 12, 
           2009, elections in Iran.
Sec. 106. Prohibition on procurement contracts with persons that export 
           sensitive technology to Iran.
Sec. 107. Harmonization of criminal penalties for violations of 
           sanctions.
Sec. 108. Authority to implement United Nations Security Council 
           resolutions imposing sanctions with respect to Iran.
Sec. 109. Increased capacity for efforts to combat unlawful or terrorist 
           financing.
Sec. 110. Reports on investments in the energy sector of Iran.
Sec. 111. Reports on certain activities of foreign export credit 
           agencies and of the Export-Import Bank of the United States.
Sec. 112. Sense of Congress regarding Iran's Revolutionary Guard Corps 
           and its affiliates.
Sec. 113. Sense of Congress regarding Iran and Hezbollah.
Sec. 114. Sense of Congress regarding the imposition of multilateral 
           sanctions with respect to Iran.
Sec. 115. Report on providing compensation for victims of international 
           terrorism.

     TITLE II--DIVESTMENT FROM CERTAIN COMPANIES THAT INVEST IN IRAN

Sec. 201. Definitions.
Sec. 202. Authority of State and local governments to divest from 
           certain companies that invest in Iran.
Sec. 203. Safe harbor for changes of investment policies by asset 
           managers.
Sec. 204. Sense of Congress regarding certain ERISA plan investments.
Sec. 205. Technical corrections to Sudan Accountability and Divestment 
           Act of 2007.

   TITLE III--PREVENTION OF DIVERSION OF CERTAIN GOODS, SERVICES, AND 
                          TECHNOLOGIES TO IRAN

Sec. 301. Definitions.

[[Page 124 STAT. 1313]]

Sec. 302. Identification of countries of concern with respect to the 
           diversion of certain goods, services, and technologies to or 
           through Iran.
Sec. 303. Destinations of Diversion Concern.
Sec. 304. Report on expanding diversion concern system to address the 
           diversion of United States origin goods, services, and 
           technologies to certain countries other than Iran.
Sec. 305. Enforcement authority.

                      TITLE IV--GENERAL PROVISIONS

Sec. 401. General provisions.
Sec. 402. Determination of budgetary effects.

SEC. 2. <<NOTE: 22 USC 8501.>>  FINDINGS.

    Congress makes the following findings:
            (1) The illicit nuclear activities of the Government of 
        Iran, combined with its development of unconventional weapons 
        and ballistic missiles and its support for international 
        terrorism, represent a threat to the security of the United 
        States, its strong ally Israel, and other allies of the United 
        States around the world.
            (2) The United States and other responsible countries have a 
        vital interest in working together to prevent the Government of 
        Iran from acquiring a nuclear weapons capability.
            (3) The International Atomic Energy Agency has repeatedly 
        called attention to Iran's illicit nuclear activities and, as a 
        result, the United Nations Security Council has adopted a range 
        of sanctions designed to encourage the Government of Iran to 
        suspend those activities and comply with its obligations under 
        the Treaty on the Non-Proliferation of Nuclear Weapons, done at 
        Washington, London, and Moscow July 1, 1968, and entered into 
        force March 5, 1970 (commonly known as the ``Nuclear Non-
        Proliferation Treaty'').
            (4) The serious and urgent nature of the threat from Iran 
        demands that the United States work together with its allies to 
        do everything possible--diplomatically, politically, and 
        economically--to prevent Iran from acquiring a nuclear weapons 
        capability.
            (5) The United States and its major European allies, 
        including the United Kingdom, France, and Germany, have 
        advocated that sanctions be strengthened should international 
        diplomatic efforts fail to achieve verifiable suspension of 
        Iran's uranium enrichment program and an end to its nuclear 
        weapons program and other illicit nuclear activities.
            (6) The Government of Iran continues to engage in serious, 
        systematic, and ongoing violations of human rights, including 
        suppression of freedom of expression and religious freedom, 
        illegitimately prolonged detention, torture, and executions. 
        Such violations have increased in the aftermath of the 
        fraudulent presidential election in Iran on June 12, 2009.
            (7) The Government of Iran has been unresponsive to 
        President Obama's unprecedented and serious efforts at 
        engagement, revealing that the Government of Iran is not 
        interested in a diplomatic resolution, as made clear, for 
        example, by the following:
                    (A) Iran's apparent rejection of the Tehran Research 
                Reactor plan, generously offered by the United States 
                and its partners, of potentially great benefit to the 
                people of Iran, and endorsed by Iran's own negotiators 
                in October 2009.

[[Page 124 STAT. 1314]]

                    (B) Iran's ongoing clandestine nuclear program, as 
                evidenced by its work on the secret uranium enrichment 
                facility at Qom, its subsequent refusal to cooperate 
                fully with inspectors from the International Atomic 
                Energy Agency, and its announcement that it would build 
                10 new uranium enrichment facilities.
                    (C) Iran's official notification to the 
                International Atomic Energy Agency that it would enrich 
                uranium to the 20 percent level, followed soon 
                thereafter by its providing to that Agency a laboratory 
                result showing that Iran had indeed enriched some 
                uranium to 19.8 percent.
                    (D) A February 18, 2010, report by the International 
                Atomic Energy Agency expressing ``concerns about the 
                possible existence in Iran of past or current 
                undisclosed activities related to the development of a 
                nuclear payload for a missile. These alleged activities 
                consist of a number of projects and sub-projects, 
                covering nuclear and missile related aspects, run by 
                military-related organizations.''.
                    (E) A May 31, 2010, report by the International 
                Atomic Energy Agency expressing continuing strong 
                concerns about Iran's lack of cooperation with the 
                Agency's verification efforts and Iran's ongoing 
                enrichment activities, which are contrary to the 
                longstanding demands of the Agency and the United 
                Nations Security Council.
                    (F) Iran's announcement in April 2010 that it had 
                developed a new, faster generation of centrifuges for 
                enriching uranium.
                    (G) Iran's ongoing arms exports to, and support for, 
                terrorists in direct contravention of United Nations 
                Security Council resolutions.
                    (H) Iran's July 31, 2009, arrest of 3 young citizens 
                of the United States on spying charges.
            (8) There is an increasing interest by State governments, 
        local governments, educational institutions, and private 
        institutions, business firms, and other investors to 
        disassociate themselves from companies that conduct business 
        activities in the energy sector of Iran, since such business 
        activities may directly or indirectly support the efforts of the 
        Government of Iran to achieve a nuclear weapons capability.
            (9) Black market proliferation networks continue to flourish 
        in the Middle East, allowing countries like Iran to gain access 
        to sensitive dual-use technologies.
            (10) Economic sanctions imposed pursuant to the provisions 
        of this Act, the Iran Sanctions Act of 1996, as amended by this 
        Act, and the International Emergency Economic Powers Act (50 
        U.S.C. 1701 et seq.), and other authorities available to the 
        United States to impose economic sanctions to prevent Iran from 
        developing nuclear weapons, are necessary to protect the 
        essential security interests of the United States.
SEC. 3. SENSE OF CONGRESS REGARDING THE NEED TO IMPOSE ADDITIONAL 
                    SANCTIONS WITH RESPECT TO IRAN.

    It is the sense of Congress that--
            (1) international diplomatic efforts to address Iran's 
        illicit nuclear efforts and support for international terrorism 
        are more likely to be effective if strong additional sanctions 
        are imposed on the Government of Iran;

[[Page 124 STAT. 1315]]

            (2) the concerns of the United States regarding Iran are 
        strictly the result of the actions of the Government of Iran;
            (3) the revelation in September 2009 that Iran is developing 
        a secret uranium enrichment site on a base of Iran's 
        Revolutionary Guard Corps near Qom, which appears to have no 
        civilian application, highlights the urgency that Iran--
                    (A) disclose the full nature of its nuclear program, 
                including any other secret locations; and
                    (B) provide the International Atomic Energy Agency 
                unfettered access to its facilities pursuant to Iran's 
                legal obligations under the Treaty on the Non-
                Proliferation of Nuclear Weapons, done at Washington, 
                London, and Moscow July 1, 1968, and entered into force 
                March 5, 1970 (commonly known as the ``Nuclear Non-
                Proliferation Treaty'') and Iran's safeguards agreement 
                with the International Atomic Energy Agency;
            (4) because of the involvement of Iran's Revolutionary Guard 
        Corps in Iran's nuclear program, international terrorism, and 
        domestic human rights abuses, the President should impose the 
        full range of applicable sanctions on--
                    (A) any individual or entity that is an agent, 
                alias, front, instrumentality, representative, official, 
                or affiliate of Iran's Revolutionary Guard Corps; and
                    (B) any individual or entity that has conducted any 
                commercial transaction or financial transaction with an 
                individual or entity described in subparagraph (A);
            (5) additional measures should be adopted by the United 
        States to prevent the diversion of sensitive dual-use 
        technologies to Iran;
            (6) the President should--
                    (A) continue to urge the Government of Iran to 
                respect the internationally recognized human rights and 
                religious freedoms of its citizens;
                    (B) identify the officials of the Government of Iran 
                and other individuals who are responsible for continuing 
                and severe violations of human rights and religious 
                freedom in Iran; and
                    (C) take appropriate measures to respond to such 
                violations, including by--
                          (i) prohibiting officials and other 
                      individuals the President identifies as being 
                      responsible for such violations from entry into 
                      the United States; and
                          (ii) freezing the assets of the officials and 
                      other individuals described in clause (i);
            (7) additional funding should be provided to the Secretary 
        of State to document, collect, and disseminate information about 
        human rights abuses in Iran, including serious abuses that have 
        taken place since the presidential election in Iran on June 12, 
        2009;
            (8) with respect to nongovernmental organizations based in 
        the United States--
                    (A) many of such organizations are essential to 
                promoting human rights and humanitarian goals around the 
                world;
                    (B) it is in the national interest of the United 
                States to allow responsible nongovernmental 
                organizations based in the United States to establish 
                and carry out operations

[[Page 124 STAT. 1316]]

                in Iran to promote civil society and foster humanitarian 
                goodwill among the people of Iran; and
                    (C) the United States should ensure that the 
                organizations described in subparagraph (B) are not 
                unnecessarily hindered from working in Iran to provide 
                humanitarian, human rights, and people-to-people 
                assistance, as appropriate, to the people of Iran;
            (9) the United States should not issue a license pursuant to 
        an agreement for cooperation (as defined in section 11 b. of the 
        Atomic Energy Act of 1954 (42 U.S.C. 2014(b))) for the export of 
        nuclear material, facilities, components, or other goods, 
        services, or technology that are or would be subject to such an 
        agreement to a country that is providing similar nuclear 
        material, facilities, components, or other goods, services, or 
        technology to another country that is not in full compliance 
        with its obligations under the Nuclear Non-Proliferation Treaty, 
        including its obligations under the safeguards agreement between 
        that country and the International Atomic Energy Agency, unless 
        the President determines that the provision of such similar 
        nuclear material, facilities, components, or other goods, 
        services, or technology to such other country does not undermine 
        the nonproliferation policies and objectives of the United 
        States; and
            (10) the people of the United States--
                    (A) have feelings of friendship for the people of 
                Iran;
                    (B) regret that developments in recent decades have 
                created impediments to that friendship; and
                    (C) hold the people of Iran, their culture, and 
                their ancient and rich history in the highest esteem.

                           TITLE I--SANCTIONS

SEC. 101. <<NOTE: 22 USC 8511.>>  DEFINITIONS.

    In this title:
            (1) 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).
            (2) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' 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), as amended by section 
        102 of this Act.
            (3) Executive agency.--The term ``executive agency'' has the 
        meaning given that term in section 4 of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 403).
            (4) Family member.--The term ``family member'' means, with 
        respect to an individual, a spouse, child, parent, sibling, 
        grandchild, or grandparent of the individual.
            (5) Iranian diplomats and representatives of other 
        government and military or quasi-governmental institutions of 
        iran.--The term ``Iranian diplomat or representative of another 
        government or military or quasi-governmental institution of 
        Iran'' means any of the Iranian diplomats and representatives of 
        other government and military or quasi-governmental institutions 
        of Iran (as that term is defined in

[[Page 124 STAT. 1317]]

        section 14 of the Iran Sanctions Act of 1996 (Public Law 104-
        172; 50 U.S.C. 1701 note)).
            (6) Knowingly.--The term ``knowingly'', with respect to 
        conduct, a circumstance, or a result, means that a person has 
        actual knowledge, or should have known, of the conduct, the 
        circumstance, or the result.
            (7) 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).
            (8) 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).
            (9) State.--The term ``State'' means each of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Commonwealth of the Northern Mariana Islands, American 
        Samoa, Guam, the United States Virgin Islands, and any other 
        territory or possession of the United States.
            (10) United states person.--The term ``United States 
        person'' means--
                    (A) a natural person who is a citizen or resident of 
                the United States or a national of the United States (as 
                defined in section 101(a) of the Immigration and 
                Nationality Act (8 U.S.C. 1101(a)); and
                    (B) an entity that is organized under the laws of 
                the United States or any State.
SEC. 102. <<NOTE: President. Determinations.>>  EXPANSION OF 
                        SANCTIONS UNDER THE IRAN SANCTIONS ACT OF 
                        1996.

    (a) In General.--Section 5 of the Iran Sanctions Act of 1996 (Public 
Law 104-172; 50 U.S.C. 1701 note) is amended--
            (1) by striking subsection (a) and inserting the following:

    ``(a) Sanctions With Respect to the Development of Petroleum 
Resources of Iran, Production of Refined Petroleum Products in Iran, and 
Exportation of Refined Petroleum Products to Iran.--
            ``(1) Development of petroleum resources of iran.--
                    ``(A) In general.--Except as provided in subsection 
                (f), the President shall impose 3 or more of the 
                sanctions described in section 6(a) with respect to a 
                person if the President determines that the person 
                knowingly, on or after the date of the enactment of the 
                Comprehensive Iran Sanctions, Accountability, and 
                Divestment Act of 2010--
                          ``(i) makes an investment described in 
                      subparagraph (B) of $20,000,000 or more; or
                          ``(ii) makes a combination of investments 
                      described in subparagraph (B) in a 12-month period 
                      if each such investment is of at least $5,000,000 
                      and such investments equal or exceed $20,000,000 
                      in the aggregate.
                    ``(B) Investment described.--An investment described 
                in this subparagraph is an investment that directly and 
                significantly contributes to the enhancement of Iran's 
                ability to develop petroleum resources.
            ``(2) Production of refined petroleum products.--
                    ``(A) In general.--Except as provided in subsection 
                (f), the President shall impose 3 or more of the 
                sanctions described in section 6(a) with respect to a 
                person if the President determines that the person 
                knowingly, on or

[[Page 124 STAT. 1318]]

                after the date of the enactment of the Comprehensive 
                Iran Sanctions, Accountability, and Divestment Act of 
                2010, sells, leases, or provides to Iran goods, 
                services, technology, information, or support described 
                in subparagraph (B)--
                          ``(i) any of which has a fair market value of 
                      $1,000,000 or more; or
                          ``(ii) that, during a 12-month period, have an 
                      aggregate fair market value of $5,000,000 or more.
                    ``(B) Goods, services, technology, information, or 
                support described.--Goods, services, technology, 
                information, or support described in this subparagraph 
                are goods, services, technology, information, or support 
                that could directly and significantly facilitate the 
                maintenance or expansion of Iran's domestic production 
                of refined petroleum products, including any direct and 
                significant assistance with respect to the construction, 
                modernization, or repair of petroleum refineries.
            ``(3) Exportation of refined petroleum products to iran.--
                    ``(A) In general.--Except as provided in subsection 
                (f), the President shall impose 3 or more of the 
                sanctions described in section 6(a) with respect to a 
                person if the President determines that the person 
                knowingly, on or after the date of the enactment of the 
                Comprehensive Iran Sanctions, Accountability, and 
                Divestment Act of 2010--
                          ``(i) sells or provides to Iran refined 
                      petroleum products--
                                    ``(I) that have a fair market value 
                                of $1,000,000 or more; or
                                    ``(II) that, during a 12-month 
                                period, have an aggregate fair market 
                                value of $5,000,000 or more; or
                          ``(ii) sells, leases, or provides to Iran 
                      goods, services, technology, information, or 
                      support described in subparagraph (B)--
                                    ``(I) any of which has a fair market 
                                value of $1,000,000 or more; or
                                    ``(II) that, during a 12-month 
                                period, have an aggregate fair market 
                                value of $5,000,000 or more.
                    ``(B) Goods, services, technology, information, or 
                support described.--Goods, services, technology, 
                information, or support described in this subparagraph 
                are goods, services, technology, information, or support 
                that could directly and significantly contribute to the 
                enhancement of Iran's ability to import refined 
                petroleum products, including--
                          ``(i) except as provided in subparagraph (C), 
                      underwriting or entering into a contract to 
                      provide insurance or reinsurance for the sale, 
                      lease, or provision of such goods, services, 
                      technology, information, or support;
                          ``(ii) financing or brokering such sale, 
                      lease, or provision; or
                          ``(iii) providing ships or shipping services 
                      to deliver refined petroleum products to Iran.
                    ``(C) Exception for underwriters and insurance 
                providers exercising due diligence.--The President may 
                not impose sanctions under this paragraph with respect

[[Page 124 STAT. 1319]]

                to a person that provides underwriting services or 
                insurance or reinsurance if the President determines 
                that the person has exercised due diligence in 
                establishing and enforcing official policies, 
                procedures, and controls to ensure that the person does 
                not underwrite or enter into a contract to provide 
                insurance or reinsurance for the sale, lease, or 
                provision of goods, services, technology, information, 
                or support described in subparagraph (B).'';
            (2) in subsection (b)--
                    (A) by redesignating paragraphs (1) and (2) as 
                subparagraphs (A) and (B), respectively, and moving such 
                subparagraphs, as so redesignated, 2 ems to the right;
                    (B) by striking ``The President shall impose'' and 
                inserting the following:
            ``(1) In general.--The President shall impose''; and
                    (C) in paragraph (1), as redesignated by 
                subparagraph (B) of this paragraph, by striking ``two or 
                more'' and all that follows through ``of this Act'' and 
                inserting ``3 or more of the sanctions described in 
                section 6(a) if the President determines that a person 
                has, on or after the date of the enactment of the 
                Comprehensive Iran Sanctions, Accountability, and 
                Divestment Act of 2010''; and
                    (D) by adding at the end the following:
            ``(2) Additional mandatory sanctions relating to transfer of 
        nuclear technology.--
                    ``(A) In general.--Except as provided in 
                subparagraphs (B) and (C), in any case in which a person 
                is subject to sanctions under paragraph (1) because of 
                an activity described in that paragraph that relates to 
                the acquisition or development of nuclear weapons or 
                related technology or of missiles or advanced 
                conventional weapons that are designed or modified to 
                deliver a nuclear weapon, no license may be issued for 
                the export, and no approval may be given for the 
                transfer or retransfer, directly or indirectly, to the 
                country the government of which has primary jurisdiction 
                over the person, of any nuclear material, facilities, 
                components, or other goods, services, or technology that 
                are or would be subject to an agreement for cooperation 
                between the United States and that government.
                    ``(B) <<NOTE: Notification.>>  Exception.--The 
                sanctions described in subparagraph (A) shall not apply 
                with respect to a country the government of which has 
                primary jurisdiction over a person that engages in an 
                activity described in that subparagraph if the President 
                determines and notifies the appropriate congressional 
                committees that the government of the country--
                          ``(i) does not know or have reason to know 
                      about the activity; or
                          ``(ii) has taken, or is taking, all reasonable 
                      steps necessary to prevent a recurrence of the 
                      activity and to penalize the person for the 
                      activity.
                    ``(C) Individual approval.--Notwithstanding 
                subparagraph (A), the President may, on a case-by-case 
                basis, approve the issuance of a license for the export, 
                or approve the transfer or retransfer, of any nuclear 
                material, facilities, components, or other goods, 
                services, or technology

[[Page 124 STAT. 1320]]

                that are or would be subject to an agreement for 
                cooperation, to a person in a country to which 
                subparagraph (A) applies (other than a person that is 
                subject to the sanctions under paragraph (1)) if the 
                President--
                          ``(i) determines that such approval is vital 
                      to the national security interests of the United 
                      States; and
                          ``(ii) <<NOTE: Deadline.>>  not later than 15 
                      days before issuing such license or approving such 
                      transfer or retransfer, submits to the Committee 
                      on Foreign Affairs of the House of Representatives 
                      and the Committee on Foreign Relations of the 
                      Senate the justification for approving such 
                      license, transfer, or retransfer.
                    ``(D) <<NOTE: Applicability.>>  Construction.--The 
                restrictions in subparagraph (A) shall apply in addition 
                to all other applicable procedures, requirements, and 
                restrictions contained in the Atomic Energy Act of 1954 
                and other related laws.
                    ``(E) Definition.--In this paragraph, the term 
                `agreement for cooperation' has the meaning given that 
                term in section 11 b. of the Atomic Energy Act of 1954 
                (42 U.S.C. 2014(b)).
                    ``(F) Applicability.--The sanctions under 
                subparagraph (A) shall apply only in a case in which a 
                person is subject to sanctions under paragraph (1) 
                because of an activity described in that paragraph in 
                which the person engages on or after the date of the 
                enactment of the Comprehensive Iran Sanctions, 
                Accountability, and Divestment Act of 2010.'';
            (3) in subsection (c)--
                    (A) by striking ``(b)'' each place it appears and 
                inserting ``(b)(1)''; and
                    (B) by striking paragraph (2) and inserting the 
                following:
            ``(2) any person that--
                    ``(A) is a successor entity to the person referred 
                to in paragraph (1);
                    ``(B) owns or controls the person referred to in 
                paragraph (1), if the person that owns or controls the 
                person referred to in paragraph (1) had actual knowledge 
                or should have known that the person referred to in 
                paragraph (1) engaged in the activities referred to in 
                that paragraph; or
                    ``(C) is owned or controlled by, or under common 
                ownership or control with, the person referred to in 
                paragraph (1), if the person owned or controlled by, or 
                under common ownership or control with (as the case may 
                be), the person referred to in paragraph (1) knowingly 
                engaged in the activities referred to in that 
                paragraph.''; and
            (4) in subsection (f)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``(b)'' and inserting ``(b)(1)''; and
                    (B) in paragraph (2), by striking ``section 
                301(b)(1) of that Act (19 U.S.C. 2511(b)(1))'' and 
                inserting ``section 301(b) of that Act (19 U.S.C. 
                2511(b))''.

    (b) Description of Sanctions.--Section 6 of such Act <<NOTE: 50 USC 
1701 note.>>  is amended--
            (1) by striking ``The sanctions to be imposed'' and 
        inserting the following:

[[Page 124 STAT. 1321]]

    ``(a) In General.--The sanctions to be imposed'';
            (2) in subsection (a), as redesignated by paragraph (1)--
                    (A) by redesignating paragraph (6) as paragraph (9); 
                and
                    (B) by inserting after paragraph (5) the following:
            ``(6) Foreign exchange.--The President may, pursuant to such 
        regulations as the President may prescribe, prohibit any 
        transactions in foreign exchange that are subject to the 
        jurisdiction of the United States and in which the sanctioned 
        person has any interest.
            ``(7) Banking transactions.--The President may, pursuant to 
        such regulations as the President may prescribe, prohibit any 
        transfers of credit or payments between financial institutions 
        or by, through, or to any financial institution, to the extent 
        that such transfers or payments are subject to the jurisdiction 
        of the United States and involve any interest of the sanctioned 
        person.
            ``(8) Property transactions.--The President may, pursuant to 
        such regulations as the President may prescribe, prohibit any 
        person from--
                    ``(A) acquiring, holding, withholding, using, 
                transferring, withdrawing, transporting, importing, or 
                exporting any property that is subject to the 
                jurisdiction of the United States and with respect to 
                which the sanctioned person has any interest;
                    ``(B) dealing in or exercising any right, power, or 
                privilege with respect to such property; or
                    ``(C) conducting any transaction involving such 
                property.''; and
            (3) by adding at the end the following:

    ``(b) Additional Measure Relating to Government Contracts.--
            ``(1) Modification of federal acquisition regulation.--Not 
        later <<NOTE: Deadline.>>  than 90 days after the date of the 
        enactment of the Comprehensive Iran Sanctions, Accountability, 
        and Divestment Act of 2010, the Federal Acquisition Regulation 
        issued pursuant to section 25 of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 421) shall be revised to 
        require a certification from each person that is a prospective 
        contractor that the person, and any person owned or controlled 
        by the person, does not engage in any activity for which 
        sanctions may be imposed under section 5.
            ``(2) Remedies.--
                    ``(A) In general.--If the head of an executive 
                agency determines that a person has submitted a false 
                certification under paragraph (1) on or after the date 
                on which the revision of the Federal Acquisition 
                Regulation required by this subsection 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 more than 3 
                years. <<NOTE: Applicability.>>  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.

[[Page 124 STAT. 1322]]

                    ``(B) 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 
                issued pursuant to section 25 of the Office of Federal 
                Procurement Policy Act (41 U.S.C. 421) 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 
                subparagraph (A).
            ``(3) Clarification regarding certain products.--The 
        remedies set forth in paragraph (2) shall not apply with respect 
        to the procurement of eligible products, as defined in section 
        308(4) of the Trade Agreements Act of 1974 (19 U.S.C. 2518(4)), 
        of any foreign country or instrumentality designated under 
        section 301(b) of that Act (19 U.S.C. 2511(b)).
            ``(4) Rule of construction.--This subsection 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 paragraph (1).
            ``(5) <<NOTE: Certification.>>  Waivers.--The President may 
        on a case-by-case basis waive the requirement that a person make 
        a certification under paragraph (1) if the President determines 
        and certifies in writing to the appropriate congressional 
        committees, the Committee on Armed Services of the Senate, and 
        the Committee on Armed Services of the House of Representatives, 
        that it is in the national interest of the United States to do 
        so.
            ``(6) Executive agency defined.--In this subsection, the 
        term `executive agency' has the meaning given that term in 
        section 4 of the Office of Federal Procurement Policy Act (41 
        U.S.C. 403).
            ``(7) Applicability.--The revisions to the Federal 
        Acquisition Regulation required under paragraph (1) 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 the Comprehensive Iran Sanctions, Accountability, 
        and Divestment Act of 2010.''.

    (c) Presidential Waiver.--Section 9 of such Act <<NOTE: 50 USC 1701 
note.>>  is amended--
            (1) in subsection (a), by striking ``5(b)'' each place it 
        appears and inserting ``5(b)(1)''; and
            (2) in subsection (c)--
                    (A) by striking ``section 5(a) or (b)'' each place 
                it appears and inserting ``section 5(a) or 5(b)(1)'';
                    (B) in paragraph (1), by striking ``important to the 
                national interest'' and inserting ``necessary to the 
                national interest''; and
                    (C) in paragraph (2), by striking subparagraph (C) 
                and inserting the following:
                    ``(C) an estimate of the significance of the conduct 
                of the person in contributing to the ability of Iran to, 
                as the case may be--
                          ``(i) develop petroleum resources, produce 
                      refined petroleum products, or import refined 
                      petroleum products; or

[[Page 124 STAT. 1323]]

                          ``(ii) acquire or develop--
                                    ``(I) chemical, biological, or 
                                nuclear weapons or related technologies; 
                                or
                                    ``(II) destabilizing numbers and 
                                types of advanced conventional weapons; 
                                and''.

    (d) <<NOTE: 50 USC 1701 note.>>  Reports on Global Trade Relating to 
Iran.--Section 10 of such Act is amended by adding at the end the 
following:

    ``(d) Reports on Global Trade Relating to Iran.--Not later than 90 
days after the date of the enactment of the Comprehensive Iran 
Sanctions, Accountability, and Divestment Act of 2010, and annually 
thereafter, the President shall submit to the appropriate congressional 
committees a report, with respect to the most recent 12-month period for 
which data are available, on the dollar value amount of trade, including 
in the energy sector, between Iran and each country maintaining 
membership in the Group of 20 Finance Ministers and Central Bank 
Governors.''.
    (e) Extension of Iran Sanctions Act of 1996.--Section 13(b) of such 
Act <<NOTE: 50 USC 1701 note.>>  is amended by striking ``December 31, 
2011'' and inserting ``December 31, 2016''.

    (f) Clarification and Expansion of Definitions.--Section 14 of such 
Act <<NOTE: 50 USC 1701 note.>>  is amended--
            (1) in paragraph (2), by striking ``the Committee on Banking 
        and Financial Services, and the Committee on International 
        Relations'' and inserting ``the Committee on Financial Services, 
        and the Committee on Foreign Affairs'';
            (2) in paragraph (9), in the flush text following 
        subparagraph (C), by striking ``The term `investment' does not 
        include'' and all that follows through ``technology.'';
            (3) by redesignating paragraphs (12), (13), (14), (15), and 
        (16) as paragraphs (13), (14), (15), (17), and (18), 
        respectively;
            (4) by inserting after paragraph (11) the following:
            ``(12) <<NOTE: Definition.>>  Knowingly.--The term 
        `knowingly', with respect to conduct, a circumstance, or a 
        result, means that a person has actual knowledge, or should have 
        known, of the conduct, the circumstance, or the result.'';
            (5) in paragraph (14), as redesignated by paragraph (3) of 
        this subsection--
                    (A) by redesignating subparagraphs (A), (B), and (C) 
                as clauses (i), (ii), and (iii), respectively, and 
                moving such clauses, as so redesignated, 2 ems to the 
                right;
                    (B) by striking ``The term `person' means--'' and 
                inserting the following:
                    ``(A) In general.--The term `person' means--'';
                    (C) in subparagraph (A), as redesignated by this 
                paragraph--
                          (i) in clause (ii), by inserting ``financial 
                      institution, insurer, underwriter, guarantor, and 
                      any other business organization,'' after 
                      ``trust,''; and
                          (ii) in clause (iii), by striking 
                      ``subparagraph (B)'' and inserting ``clause 
                      (ii)''; and
                    (D) by adding at the end the following:
                    ``(B) Application to governmental entities.--The 
                term `person' does not include a government or 
                governmental entity that is not operating as a business 
                enterprise.'';
            (6) in paragraph (15), as redesignated by paragraph (3) of 
        this subsection, by striking ``petroleum and natural gas

[[Page 124 STAT. 1324]]

        resources'' and inserting ``petroleum, refined petroleum 
        products, oil or liquefied natural gas, natural gas resources, 
        oil or liquefied natural gas tankers, and products used to 
        construct or maintain pipelines used to transport oil or 
        liquefied natural gas''; and
            (7) by inserting after paragraph (15), as so redesignated, 
        the following:
            ``(16) <<NOTE: Definition.>>  Refined petroleum products.--
        The term `refined petroleum products' means diesel, gasoline, 
        jet fuel (including naphtha-type and kerosene-type jet fuel), 
        and aviation gasoline.''.

    (g) Waiver for Certain Persons in Certain Countries; Mandatory 
Investigations and Reporting; Conforming Amendments.--Section 4 of such 
Act <<NOTE: 50 USC 1701 note.>>  is amended--
            (1) in subsection (b)(2), by striking ``(in addition to that 
        provided in subsection (d))'';
            (2) in subsection (c)--
                    (A) in paragraph (1)--
                          (i) by striking ``The President may'' and 
                      inserting the following:
                    ``(A) General waiver.--The President may''; and
                          (ii) by adding at the end the following:
                    ``(B) Waiver with respect to persons in countries 
                that cooperate in multilateral efforts with respect to 
                iran.--The President may, on a case by case basis, waive 
                for a period of not more than 12 months the application 
                of section 5(a) with respect to a person if the 
                President, at least 30 days before the waiver is to take 
                effect--
                          ``(i) <<NOTE: Certification.>>  certifies to 
                      the appropriate congressional committees that--
                                    ``(I) the government with primary 
                                jurisdiction over the person is closely 
                                cooperating with the United States in 
                                multilateral efforts to prevent Iran 
                                from--
                                            ``(aa) acquiring or 
                                        developing chemical, biological, 
                                        or nuclear weapons or related 
                                        technologies; or
                                            ``(bb) acquiring or 
                                        developing destabilizing numbers 
                                        and types of advanced 
                                        conventional weapons; and
                                    ``(II) such a waiver is vital to the 
                                national security interests of the 
                                United States; and
                          ``(ii) submits to the appropriate 
                      congressional committees a report identifying--
                                    ``(I) the person with respect to 
                                which the President waives the 
                                application of sanctions; and
                                    ``(II) the actions taken by the 
                                government described in clause (i)(I) to 
                                cooperate in multilateral efforts 
                                described in that clause.''; and
                    (B) by striking paragraph (2) and inserting the 
                following:
            ``(2) Subsequent renewal of waiver.--At the conclusion of 
        the period of a waiver under subparagraph (A) or (B) of 
        paragraph (1), the President may renew the waiver--
                    ``(A) if the President determines, in accordance 
                with subparagraph (A) or (B) of that paragraph (as the 
                case may be), that the waiver is appropriate; and

[[Page 124 STAT. 1325]]

                    ``(B)(i) in the case of a waiver under subparagraph 
                (A) of paragraph (1), for subsequent periods of not more 
                than six months each; and
                    ``(ii) in the case of a waiver under subparagraph 
                (B) of paragraph (1), for subsequent periods of not more 
                than 12 months each.'';
            (3) by striking subsection (d);
            (4) by redesignating subsections (e) and (f) as subsections 
        (d) and (e), respectively; and
            (5) in subsection (e), as redesignated by paragraph (4) of 
        this subsection--
                    (A) in paragraph (1)--
                          (i) by striking ``should initiate'' and 
                      inserting ``shall initiate''; and
                          (ii) by striking ``investment activity in Iran 
                      as'' and inserting ``an activity'';
                    (B) in paragraph (2)--
                          (i) by striking ``should determine'' and 
                      inserting ``shall (unless paragraph (3) applies) 
                      determine''; and
                          (ii) by striking ``investment activity in Iran 
                      as'' and inserting ``an activity''; and
                    (C) by adding at the end the following:
            ``(3) <<NOTE: Certification.>>  Special rule.--The President 
        need not initiate an investigation, and may terminate an 
        investigation, under this subsection if the President certifies 
        in writing to the appropriate congressional committees that--
                    ``(A) the person whose activity was the basis for 
                the investigation is no longer engaging in the activity 
                or has taken significant verifiable steps toward 
                stopping the activity; and
                    ``(B) the President has received reliable assurances 
                that the person will not knowingly engage in an activity 
                described in section 5(a) in the future.''.

    (h) <<NOTE: 50 USC 1701 note.>>  Effective Date.--
            (1) In general.--The amendments made by this section shall--
                    (A) take effect on the date of the enactment of this 
                Act; and
                    (B) except as provided in this subsection or section 
                6(b)(7) of the Iran Sanctions Act of 1996, as amended by 
                subsection (b) of this section, apply with respect to an 
                investment or activity described in subsection (a) or 
                (b) of section 5 of the Iran Sanctions Act of 1996, as 
                amended by this section, that is commenced on or after 
                such date of enactment.
            (2) Applicability to ongoing investments prohibited under 
        prior law.--A person that makes an investment described in 
        section 5(a) of the Iran Sanctions Act of 1996, as in effect on 
        the day before the date of the enactment of this Act, that is 
        commenced before such date of enactment and continues on or 
        after such date of enactment, shall, except as provided in 
        paragraph (4), be subject to the provisions of the Iran 
        Sanctions Act of 1996, as in effect on the day before such date 
        of enactment.
            (3) Applicability to ongoing activities relating to 
        chemical, biological, or nuclear weapons or related

[[Page 124 STAT. 1326]]

        technologies.--A person that, before the date of the enactment 
        of this Act, commenced an activity described in section 5(b) of 
        the Iran Sanctions Act of 1996, as in effect on the day before 
        such date of enactment, and continues the activity on or after 
        such date of enactment, shall be subject to the provisions of 
        the Iran Sanctions Act of 1996, as amended by this Act.
            (4) Applicability of mandatory investigations to 
        investments.--The amendments made by subsection (g)(5) of this 
        section shall apply on and after the date of the enactment of 
        this Act--
                    (A) with respect to an investment described in 
                section 5(a)(1) of the Iran Sanctions Act of 1996, as 
                amended by subsection (a) of this section, that is 
                commenced on or after such date of enactment; and
                    (B) with respect to an investment described in 
                section 5(a) of the Iran Sanctions Act of 1996, as in 
                effect on the day before the date of the enactment of 
                this Act, that is commenced before such date of 
                enactment and continues on or after such date of 
                enactment.
            (5) Applicability of mandatory investigations to activities 
        relating to petroleum.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the amendments made by subsection (g)(5) of this 
                section shall apply on and after the date that is 1 year 
                after the date of the enactment of this Act with respect 
                to an activity described in paragraph (2) or (3) of 
                section 5(a) of the Iran Sanctions Act of 1996, as 
                amended by subsection (a) of this section, that is 
                commenced on or after the date that is 1 year after the 
                date of the enactment of this Act or the date on which 
                the President fails to submit a certification that is 
                required under subparagraph (B) (whichever is 
                applicable).
                    (B) Special rule for delay of effective date.--
                          (i) Reporting requirement.--Not later than 30 
                      days before the date that is 1 year after the date 
                      of the enactment of this Act, the President shall 
                      submit to the appropriate congressional committees 
                      a report describing--
                                    (I) the diplomatic and other efforts 
                                of the President--
                                            (aa) to dissuade foreign 
                                        persons from engaging in 
                                        activities described in 
                                        paragraph (2) or (3) of section 
                                        5(a) of the Iran Sanctions Act 
                                        of 1996, as amended by 
                                        subsection (a) of this section; 
                                        and
                                            (bb) to encourage other 
                                        governments to dissuade persons 
                                        over which those governments 
                                        have jurisdiction from engaging 
                                        in such activities;
                                    (II) the successes and failures of 
                                the efforts described in subclause (I); 
                                and
                                    (III) each investigation under 
                                section 4(e) of the Iran Sanctions Act 
                                of 1996, as amended by subsection (g)(5) 
                                of this section and as in effect 
                                pursuant to subparagraph (C) of this 
                                paragraph, or any other review of an 
                                activity described in

[[Page 124 STAT. 1327]]

                                paragraph (2) or (3) of section 5(a) of 
                                the Iran Sanctions Act of 1996, as 
                                amended by subsection (a) of this 
                                section, that is initiated or ongoing 
                                during the period beginning on the date 
                                of the enactment of this Act and ending 
                                on the date on which the President is 
                                required to submit the report.
                          (ii) <<NOTE: Time period.>>  Certification.--
                      If the President submits to the appropriate 
                      congressional committees, with the report required 
                      by clause (i), a certification that there was a 
                      substantial reduction in activities described in 
                      paragraphs (2) and (3) of section 5(a) of the Iran 
                      Sanctions Act of 1996, as amended by subsection 
                      (a) of this section, during the period described 
                      in clause (i)(III), the effective date provided 
                      for in subparagraph (A) shall be delayed for a 
                      180-day period beginning after the date provided 
                      for in that subparagraph.
                          (iii) <<NOTE: Time period.>>  Subsequent 
                      reports and delays.--The effective date provided 
                      for in subparagraph (A) shall be delayed for 
                      additional 180-day periods occurring after the end 
                      of the 180-day period provided for under clause 
                      (ii), if, not later than 30 days before the 180-
                      day period preceding such additional 180-day 
                      period expires, the President submits to the 
                      appropriate congressional committees--
                                    (I) a report containing the matters 
                                required in the report under clause (i) 
                                for the period beginning on the date on 
                                which the preceding report was required 
                                to be submitted under clause (i) or this 
                                clause (as the case may be) and ending 
                                on the date on which the President is 
                                required to submit the most recent 
                                report under this clause; and
                                    (II) a certification that, during 
                                the period described in subclause (I), 
                                there was (as compared to the period for 
                                which the preceding report was submitted 
                                under this subparagraph) a progressive 
                                reduction in activities described in 
                                paragraphs (2) and (3) of section 5(a) 
                                of the Iran Sanctions Act of 1996, as 
                                amended by subsection (a) of this 
                                section.
                          (iv) Consequence of failure to certify.--If 
                      the President does not make a certification at a 
                      time required by this subparagraph--
                                    (I) the amendments made by 
                                subsection (g)(5) of this section shall 
                                apply on and after the date on which the 
                                certification was required to be 
                                submitted by this subparagraph, with 
                                respect to an activity described in 
                                paragraph (2) or (3) of section 5(a) of 
                                the Iran Sanctions Act of 1996, as 
                                amended by subsection (a) of this 
                                section, that--
                                            (aa) is referenced in the 
                                        most recent report required to 
                                        be submitted under this 
                                        subparagraph; or
                                            (bb) is commenced on or 
                                        after the date on which such 
                                        most recent report is required 
                                        to be submitted; and

[[Page 124 STAT. 1328]]

                                    (II) not later than 45 days after 
                                the date on which the certification was 
                                required to be submitted by this 
                                subparagraph, the President shall make a 
                                determination under paragraph (2) or (3) 
                                of section 5(a) of the Iran Sanctions 
                                Act of 1996 (as the case may be), as 
                                amended by subsection (a) of this 
                                section, with respect to relevant 
                                activities described in subclause 
                                (I)(aa).
                    (C) <<NOTE: Time periods.>>  Applicability of 
                permissive investigations.--During the 1-year period 
                beginning on the date of the enactment of this Act and 
                during any 180-day period during which the effective 
                date provided for in subparagraph (A) is delayed 
                pursuant to subparagraph (B), section 4(e) of the Iran 
                Sanctions Act of 1996, as amended by subsection (g)(5) 
                of this section, shall be applied, with respect to an 
                activity described in paragraph (2) or (3) of section 
                5(a) of the Iran Sanctions Act of 1996, as amended by 
                subsection (a) of this section, by substituting 
                ``should'' for ``shall'' each place it appears.
            (6) Waiver authority.--The amendments made by subsection (c) 
        shall not be construed to affect any exercise of the authority 
        under section 9(c) of the Iran Sanctions Act of 1996, as in 
        effect on the day before the date of the enactment of this Act.
SEC. 103. <<NOTE: 22 USC 8512.>>  ECONOMIC SANCTIONS RELATING TO 
                        IRAN.

    (a) <<NOTE: Effective date. Applicability.>>  In General.--
Notwithstanding section 101 of the Iran Freedom Support Act (Public Law 
109-293; 120 Stat. 1344), and in addition to any other sanction in 
effect, beginning on the date that is 90 days after the date of the 
enactment of this Act, the economic sanctions described in subsection 
(b) shall apply with respect to Iran.

    (b) Sanctions.--The sanctions described in this subsection are the 
following:
            (1) Prohibition on imports.--
                    (A) In general.--Except as provided in subparagraph 
                (B), no good or service of Iranian origin may be 
                imported directly or indirectly into the United States.
                    (B) Exceptions.--The exceptions provided for in 
                section 203(b) of the International Emergency Economic 
                Powers Act (50 U.S.C. 1702(b)), including the exception 
                for information and informational materials, shall apply 
                to the prohibition in subparagraph (A) of this paragraph 
                to the same extent that such exceptions apply to the 
                authority provided under section 203(a) of that Act.
            (2) Prohibition on exports.--
                    (A) In general.--Except as provided in subparagraph 
                (B), no good, service, or technology of United States 
                origin may be exported to Iran from the United States or 
                by a United States person, wherever located.
                    (B) Exceptions.--
                          (i) Personal communications; articles to 
                      relieve human suffering; information and 
                      informational materials; transactions incident to 
                      travel. <<NOTE: Applicability.>> --The exceptions 
                      provided for in section 203(b) of the 
                      International Emergency Economic Powers Act (50 
                      U.S.C. 1702(b)), including the exception for

[[Page 124 STAT. 1329]]

                      information and informational materials, shall 
                      apply to the prohibition in subparagraph (A) of 
                      this paragraph to the same extent that such 
                      exceptions apply to the authority provided under 
                      section 203(a) of that Act.
                          (ii) Food; medicine; humanitarian 
                      assistance.--The prohibition in subparagraph (A) 
                      shall not apply to the exportation of--
                                    (I) agricultural commodities, food, 
                                medicine, or medical devices; or
                                    (II) articles exported to Iran to 
                                provide humanitarian assistance to the 
                                people of Iran.
                          (iii) Internet communications.--The 
                      prohibition in subparagraph (A) shall not apply to 
                      the exportation of--
                                    (I) services incident to the 
                                exchange of personal communications over 
                                the Internet or software necessary to 
                                enable such services, as provided for in 
                                section 560.540 of title 31, Code of 
                                Federal Regulations (or any 
                                corresponding similar regulation or 
                                ruling);
                                    (II) hardware necessary to enable 
                                such services; or
                                    (III) hardware, software, or 
                                technology necessary for access to the 
                                Internet.
                          (iv)  Goods, services, or technologies 
                      necessary to ensure the safe operation of 
                      commercial aircraft.--The prohibition in 
                      subparagraph (A) shall not apply to the 
                      exportation of goods, services, or technologies 
                      necessary to ensure the safe operation of 
                      commercial aircraft produced in the United States 
                      or commercial aircraft into which aircraft 
                      components produced in the United States are 
                      incorporated, if the exportation of such goods, 
                      services, or technologies is approved by the 
                      Secretary of the Treasury, in consultation with 
                      the Secretary of Commerce, pursuant to regulations 
                      issued by the Secretary of the Treasury regarding 
                      the exportation of such goods, services, or 
                      technologies, if appropriate.
                          (v) Goods, services, or technologies exported 
                      to support international organizations.--The 
                      prohibition in subparagraph (A) shall not apply to 
                      the exportation of goods, services, or 
                      technologies that--
                                    (I) are provided to the 
                                International Atomic Energy Agency and 
                                are necessary to support activities of 
                                that Agency in Iran; or
                                    (II) are necessary to support 
                                activities, including the activities of 
                                nongovernmental organizations, relating 
                                to promoting democracy in Iran.
                          (vi) <<NOTE: President. Determination.>>  
                      Exports in the national interest.--The prohibition 
                      in subparagraph (A) shall not apply to the 
                      exportation of goods, services, or technologies if 
                      the President determines the exportation of such 
                      goods, services, or technologies to be in the 
                      national interest of the United States.
            (3) <<NOTE: President.>>  Freezing assets.--

[[Page 124 STAT. 1330]]

                    (A) In general.--At such time as the President 
                determines that a person in Iran, including an Iranian 
                diplomat or representative of another government or 
                military or quasi-governmental institution of Iran 
                (including Iran's Revolutionary Guard Corps and its 
                affiliates), satisfies the criteria for designation with 
                respect to the imposition of sanctions under the 
                authority of the International Emergency Economic Powers 
                Act (50 U.S.C. 1701 et seq.), the President shall take 
                such action as may be necessary to freeze, as soon as 
                possible--
                          (i) the funds and other assets belonging to 
                      that person; and
                          (ii) any funds or other assets that person 
                      transfers, on or after the date on which the 
                      President determines the person satisfies such 
                      criteria, to any family member or associate acting 
                      for or on behalf of the person.
                    (B) Reports to the office of foreign assets 
                control.--The action described in subparagraph (A) 
                includes requiring any United States financial 
                institution that holds funds or assets of a person 
                described in that subparagraph or funds or assets that 
                person transfers to a family member or associate 
                described in that subparagraph to report promptly to the 
                Office of Foreign Assets Control information regarding 
                such funds and assets.
                    (C) Reports to congress.--Not later than 14 days 
                after a decision is made to freeze the funds or assets 
                of any person under subparagraph (A), the President 
                shall report the name of the person to the appropriate 
                congressional committees. Such a report may contain a 
                classified annex.
                    (D) Termination.--The President shall release assets 
                or funds frozen under subparagraph (A) if the person to 
                which the assets or funds belong or the person that 
                transfers the assets or funds as described in 
                subparagraph (A)(ii) (as the case may be) no longer 
                satisfies the criteria for designation with respect to 
                the imposition of sanctions under the authority of the 
                International Emergency Economic Powers Act (50 U.S.C. 
                1701 et seq.).
                    (E) United states financial institution defined.--In 
                this paragraph, the term ``United States financial 
                institution'' means a financial institution (as defined 
                in section 14 of the Iran Sanctions Act of 1996 (Public 
                Law 104-172; 50 U.S.C. 1701 note)) that is a United 
                States person.

    (c) <<NOTE: Applicability.>>  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 section or regulations prescribed under this section 
to the same extent that such penalties apply to a person that commits an 
unlawful act described in section 206(a) of that Act.

    (d) Regulatory Authority.--
            (1) In general.--The President shall prescribe regulations 
        to carry out this section, which may include regulatory 
        exceptions to the sanctions described in subsection (b).
            (2) Applicability of certain regulations.--No exception to 
        the prohibition under subsection (b)(1) may be made for

[[Page 124 STAT. 1331]]

        the commercial importation of an Iranian origin good described 
        in section 560.534(a) of title 31, Code of Federal Regulations 
        (as in effect on the day before the date of the enactment of 
        this Act), unless the President--
                    (A) prescribes a regulation providing for such an 
                exception on or after the date of the enactment of this 
                Act; and
                    (B) submits to the appropriate congressional 
                committees--
                          (i) <<NOTE: Certification.>>  a certification 
                      in writing that the exception is in the national 
                      interest of the United States; and
                          (ii) <<NOTE: Reports.>>  a report describing 
                      the reasons for the exception.
SEC. 104. <<NOTE: 22 USC 8513.>>  MANDATORY SANCTIONS WITH RESPECT 
                        TO FINANCIAL INSTITUTIONS THAT ENGAGE IN 
                        CERTAIN TRANSACTIONS.

    (a) Findings.--Congress makes the following findings:
            (1) The Financial Action Task Force is an intergovernmental 
        body whose purpose is to develop and promote national and 
        international policies to combat money laundering and terrorist 
        financing.
            (2) Thirty-three countries, plus the European Commission and 
        the Cooperation Council for the Arab States of the Gulf, belong 
        to the Financial Action Task Force. The member countries of the 
        Financial Action Task Force include the United States, Canada, 
        most countries in western Europe, Russia, the People's Republic 
        of China, Japan, South Korea, Argentina, and Brazil.
            (3) In 2008 the Financial Action Task Force extended its 
        mandate to include addressing ``new and emerging threats such as 
        proliferation financing'', meaning the financing of the 
        proliferation of weapons of mass destruction, and published 
        ``guidance papers'' for members to assist them in implementing 
        various United Nations Security Council resolutions dealing with 
        weapons of mass destruction, including United Nations Security 
        Council Resolutions 1737 (2006) and 1803 (2008), which deal 
        specifically with proliferation by Iran.
            (4) The Financial Action Task Force has repeatedly called on 
        members--
                    (A) to advise financial institutions in their 
                jurisdictions to give special attention to business 
                relationships and transactions with Iran, including 
                Iranian companies and financial institutions;
                    (B) to apply effective countermeasures to protect 
                their financial sectors from risks relating to money 
                laundering and financing of terrorism that emanate from 
                Iran;
                    (C) to protect against correspondent relationships 
                being used by Iran and Iranian companies and financial 
                institutions to bypass or evade countermeasures and 
                risk-mitigation practices; and
                    (D) to take into account risks relating to money 
                laundering and financing of terrorism when considering 
                requests by Iranian financial institutions to open 
                branches and subsidiaries in their jurisdictions.
            (5) At a February 2010 meeting of the Financial Action Task 
        Force, the Task Force called on members to apply countermeasures 
        ``to protect the international financial system from

[[Page 124 STAT. 1332]]

        the ongoing and substantial money laundering and terrorist 
        financing (ML/TF) risks'' emanating from Iran.

    (b) Sense of Congress Regarding the Imposition of Sanctions on the 
Central Bank of Iran.--Congress--
            (1) acknowledges the efforts of the United Nations Security 
        Council to impose limitations on transactions involving Iranian 
        financial institutions, including the Central Bank of Iran; and
            (2) urges the President, in the strongest terms, to consider 
        immediately using the authority of the President to impose 
        sanctions on the Central Bank of Iran and any other Iranian 
        financial institution engaged in proliferation activities or 
        support of terrorist groups.

    (c) Prohibitions and Conditions With Respect to Certain Accounts 
Held by Foreign Financial Institutions.--
            (1) <<NOTE: Deadline. Regulations.>>  In general.--Not later 
        than 90 days after the date of the enactment of this Act, the 
        Secretary of the Treasury shall prescribe regulations to 
        prohibit, or impose strict conditions on, the opening or 
        maintaining in the United States of a correspondent account or a 
        payable-through account by a foreign financial institution that 
        the Secretary finds knowingly engages in an activity described 
        in paragraph (2).
            (2) Activities described.--A foreign financial institution 
        engages in an activity described in this paragraph if the 
        foreign financial institution--
                    (A) facilitates the efforts of the Government of 
                Iran (including efforts of Iran's Revolutionary Guard 
                Corps or any of its agents or affiliates)--
                          (i) to acquire or develop weapons of mass 
                      destruction or delivery systems for weapons of 
                      mass destruction; or
                          (ii) to provide support for organizations 
                      designated as foreign terrorist organizations 
                      under section 219(a) of the Immigration and 
                      Nationality Act (8 U.S.C. 1189(a)) or support for 
                      acts of international terrorism (as defined in 
                      section 14 of the Iran Sanctions Act of 1996 
                      (Public Law 104-172; 50 U.S.C. 1701 note));
                    (B) facilitates the activities of a person subject 
                to financial sanctions pursuant to United Nations 
                Security Council Resolution 1737 (2006), 1747 (2007), 
                1803 (2008), or 1929 (2010), or any other resolution 
                that is agreed to by the Security Council and imposes 
                sanctions with respect to Iran;
                    (C) engages in money laundering to carry out an 
                activity described in subparagraph (A) or (B);
                    (D) facilitates efforts by the Central Bank of Iran 
                or any other Iranian financial institution to carry out 
                an activity described in subparagraph (A) or (B); or
                    (E) facilitates a significant transaction or 
                transactions or provides significant financial services 
                for--
                          (i) Iran's Revolutionary Guard Corps or any of 
                      its agents or affiliates whose property or 
                      interests in property are blocked pursuant to the 
                      International Emergency Economic Powers Act (50 
                      U.S.C. 1701 et seq.); or
                          (ii) a financial institution whose property or 
                      interests in property are blocked pursuant to that 
                      Act in connection with--

[[Page 124 STAT. 1333]]

                                    (I) Iran's proliferation of weapons 
                                of mass destruction or delivery systems 
                                for weapons of mass destruction; or
                                    (II) Iran's support for 
                                international terrorism.
            (3) <<NOTE: Applicability.>>  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 regulations 
        prescribed under paragraph (1) of this subsection to the same 
        extent that such penalties apply to a person that commits an 
        unlawful act described in section 206(a) of that Act.

    (d) Penalties for Domestic Financial Institutions for Actions of 
Persons Owned or Controlled by Such Financial Institutions.--
            (1) <<NOTE: Deadline. Regulations.>>  In general.--Not later 
        than 90 days after the date of the enactment of this Act, the 
        Secretary of the Treasury shall prescribe regulations to 
        prohibit any person owned or controlled by a domestic financial 
        institution from knowingly engaging in a transaction or 
        transactions with or benefitting Iran's Revolutionary Guard 
        Corps or any of its agents or affiliates whose property or 
        interests in property are blocked pursuant to the International 
        Emergency Economic Powers Act (50 U.S.C. 1701 et seq.).
            (2) <<NOTE: Applicability.>>  Penalties.--The penalties 
        provided for in section 206(b) of the International Emergency 
        Economic Powers Act (50 U.S.C. 1705(b)) shall apply to a 
        domestic financial institution to the same extent that such 
        penalties apply to a person that commits an unlawful act 
        described in section 206(a) of that Act if--
                    (A) a person owned or controlled by the domestic 
                financial institution violates, attempts to violate, 
                conspires to violate, or causes a violation of 
                regulations prescribed under paragraph (1) of this 
                subsection; and
                    (B) the domestic financial institution knew or 
                should have known that the person violated, attempted to 
                violate, conspired to violate, or caused a violation of 
                such regulations.

    (e) Requirements for Financial Institutions Maintaining Accounts for 
Foreign Financial Institutions.--
            (1) <<NOTE: Regulations.>>  In general.--The Secretary of 
        the Treasury shall prescribe regulations to require a domestic 
        financial institution maintaining a correspondent account or 
        payable-through account in the United States for a foreign 
        financial institution to do one or more of the following:
                    (A) Perform an audit of activities described in 
                subsection (c)(2) that may be carried out by the foreign 
                financial institution.
                    (B) Report to the Department of the Treasury with 
                respect to transactions or other financial services 
                provided with respect to any such activity.
                    (C) Certify, to the best of the knowledge of the 
                domestic financial institution, that the foreign 
                financial institution is not knowingly engaging in any 
                such activity.
                    (D) Establish due diligence policies, procedures, 
                and controls, such as the due diligence policies, 
                procedures, and controls described in section 5318(i) of 
                title 31, United States Code, reasonably designed to 
                detect whether the

[[Page 124 STAT. 1334]]

                Secretary of the Treasury has found the foreign 
                financial institution to knowingly engage in any such 
                activity.
            (2) <<NOTE: Applicability.>>  Penalties.--The penalties 
        provided for in sections 5321(a) and 5322 of title 31, United 
        States Code, shall apply to a person that violates a regulation 
        prescribed under paragraph (1) of this subsection, in the same 
        manner and to the same extent as such penalties would apply to 
        any person that is otherwise subject to such section 5321(a) or 
        5322.

    (f) <<NOTE: Effective date.>>  Waiver.--The Secretary of the 
Treasury may waive the application of a prohibition or condition imposed 
with respect to a foreign financial institution pursuant to subsection 
(c) or the imposition of a penalty under subsection (d) with respect to 
a domestic financial institution on and after the date that is 30 days 
after the Secretary--
            (1) <<NOTE: Determination.>>  determines that such a waiver 
        is necessary to the national interest of the United States; and
            (2) <<NOTE: Reports.>>  submits to the appropriate 
        congressional committees a report describing the reasons for the 
        determination.

    (g) Procedures for Judicial Review of Classified Information.--
            (1) In general.--If a finding under subsection (c)(1), a 
        prohibition, condition, or penalty imposed as a result of any 
        such finding, or a penalty imposed under subsection (d), is 
        based on classified information (as defined in section 1(a) of 
        the Classified Information Procedures Act (18 U.S.C. App.)) and 
        a court reviews the finding or the imposition of the 
        prohibition, condition, or penalty, the Secretary of the 
        Treasury may submit such information to the court ex parte and 
        in camera.
            (2) Rule of construction.--Nothing in this subsection shall 
        be construed to confer or imply any right to judicial review of 
        any finding under subsection (c)(1), any prohibition, condition, 
        or penalty imposed as a result of any such finding, or any 
        penalty imposed under subsection (d).

    (h) Consultations in Implementation of Regulations.--In implementing 
this section and the regulations prescribed under this section, the 
Secretary of the Treasury--
            (1) shall consult with the Secretary of State; and
            (2) may, in the sole discretion of the Secretary of the 
        Treasury, consult with such other agencies and departments and 
        such other interested parties as the Secretary considers 
        appropriate.

    (i) Definitions.--
            (1) In general.--In this section:
                    (A) 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.
                    (B) Agent.--The term ``agent'' includes an entity 
                established by a person for purposes of conducting 
                transactions on behalf of the person in order to conceal 
                the identity of the person.
                    (C) Financial institution.--The term ``financial 
                institution'' means a financial institution specified in 
                subparagraph (A), (B), (C), (D), (E), (F), (G), (H), 
                (I), (J), (M), or (Y) of section 5312(a)(2) of title 31, 
                United States Code.

[[Page 124 STAT. 1335]]

                    (D) Foreign financial institution; domestic 
                financial institution.--The terms ``foreign financial 
                institution'' and ``domestic financial institution'' 
                shall have the meanings of those terms as determined by 
                the Secretary of the Treasury.
                    (E) Money laundering.--The term ``money laundering'' 
                means the movement of illicit cash or cash equivalent 
                proceeds into, out of, or through a country, or into, 
                out of, or through a financial institution.
            (2) Other definitions.--The Secretary of the Treasury may 
        further define the terms used in this section in the regulations 
        prescribed under this section.
SEC. 105. <<NOTE: President. 22 USC 8514.>>  IMPOSITION OF 
                        SANCTIONS ON CERTAIN PERSONS WHO ARE 
                        RESPONSIBLE FOR OR COMPLICIT IN HUMAN 
                        RIGHTS ABUSES COMMITTED AGAINST CITIZENS 
                        OF IRAN OR THEIR FAMILY MEMBERS AFTER THE 
                        JUNE 12, 2009, ELECTIONS IN IRAN.

    (a) In General.--The President shall impose sanctions described in 
subsection (c) with respect to each person on the list required by 
subsection (b).
    (b) List of Persons Who Are Responsible for or Complicit in Certain 
Human Rights Abuses.--
            (1) <<NOTE: Deadline.>>  In general.--Not later than 90 days 
        after the date of the enactment of this Act, the President shall 
        submit to the appropriate congressional committees a list of 
        persons who are officials of the Government of Iran or persons 
        acting on behalf of that Government (including members of 
        paramilitary organizations such as Ansar-e-Hezbollah and Basij-e 
        Mostaz'afin), that the President determines, based on credible 
        evidence, are responsible for or complicit in, or responsible 
        for ordering, controlling, or otherwise directing, the 
        commission of serious human rights abuses against citizens of 
        Iran or their family members on or after June 12, 2009, 
        regardless of whether such abuses occurred in Iran.
            (2) Updates of list.--The President shall submit to the 
        appropriate congressional committees an updated list under 
        paragraph (1)--
                    (A) <<NOTE: Deadlines.>>  not later than 270 days 
                after the date of the enactment of this Act and every 
                180 days thereafter; and
                    (B) as new information becomes available.
            (3) Form of report; public availability.--
                    (A) Form.--The list required by paragraph (1) shall 
                be submitted in unclassified form but may contain a 
                classified annex.
                    (B) <<NOTE: Web posting.>>  Public availability.--
                The unclassified portion of the list required by 
                paragraph (1) shall be made available to the public and 
                posted on the websites of the Department of the Treasury 
                and the Department of State.
            (4) Consideration of data from other countries and 
        nongovernmental organizations.--In preparing the list required 
        by paragraph (1), the President shall consider credible data 
        already obtained by other countries and nongovernmental 
        organizations, including organizations in Iran, that monitor the 
        human rights abuses of the Government of Iran.

    (c) Sanctions Described.--The sanctions described in this subsection 
are ineligibility for a visa to enter the United States and

[[Page 124 STAT. 1336]]

sanctions pursuant to the International Emergency Economic Powers Act 
(50 U.S.C. 1701 et seq.), including blocking of property and 
restrictions or prohibitions on financial transactions and the 
exportation and importation of property, subject to such regulations as 
the President may prescribe, including regulatory exceptions to permit 
the United States to comply with the Agreement between the United 
Nations and the United States of America regarding the Headquarters of 
the United Nations, signed June 26, 1947, and entered into force 
November 21, 1947, and other applicable international obligations.
    (d) <<NOTE: Determination. Certification.>>  Termination of 
Sanctions.--The provisions of this section shall terminate on the date 
on which the President determines and certifies to the appropriate 
congressional committees that the Government of Iran has--
            (1) unconditionally released all political prisoners, 
        including the citizens of Iran detained in the aftermath of the 
        June 12, 2009, presidential election in Iran;
            (2) ceased its practices of violence, unlawful detention, 
        torture, and abuse of citizens of Iran while engaging in 
        peaceful political activity;
            (3) conducted a transparent investigation into the killings, 
        arrests, and abuse of peaceful political activists that occurred 
        in the aftermath of the June 12, 2009, presidential election in 
        Iran and prosecuted the individuals responsible for such 
        killings, arrests, and abuse; and
            (4) made public commitments to, and is making demonstrable 
        progress toward--
                    (A) establishing an independent judiciary; and
                    (B) respecting the human rights and basic freedoms 
                recognized in the Universal Declaration of Human Rights.
SEC. 106. <<NOTE: 22 USC 8515.>>  PROHIBITION ON PROCUREMENT 
                        CONTRACTS WITH PERSONS THAT EXPORT 
                        SENSITIVE TECHNOLOGY TO IRAN.

    (a) In General.--Except as provided in subsection (b), and pursuant 
to such regulations as the President may prescribe, the head of an 
executive agency may not enter into or renew a contract, on or after the 
date that is 90 days after the date of the enactment of this Act, for 
the procurement of goods or services with a person that exports 
sensitive technology to Iran.
    (b) <<NOTE: President.>>  Authorization to Exempt Certain 
Products.--The President is authorized to exempt from the prohibition 
under subsection (a) only eligible products, as defined in section 
308(4) of the Trade Agreements Act of 1979 (19 U.S.C. 2518(4)), of any 
foreign country or instrumentality designated under section 301(b) of 
that Act (19 U.S.C. 2511(b)).

    (c) Sensitive Technology Defined.--
            (1) In general.--The term ``sensitive technology'' means 
        hardware, software, telecommunications equipment, or any other 
        technology, that the President determines is to be used 
        specifically--
                    (A) to restrict the free flow of unbiased 
                information in Iran; or
                    (B) to disrupt, monitor, or otherwise restrict 
                speech of the people of Iran.
            (2) Exception.--The term ``sensitive technology'' does not 
        include information or informational materials the exportation 
        of which the President does not have the authority to regulate

[[Page 124 STAT. 1337]]

        or prohibit pursuant to section 203(b)(3) of the International 
        Emergency Economic Powers Act (50 U.S.C. 1702(b)(3)).

    (d) Government Accountability Office Report on Effect of Procurement 
Prohibition.--Not later than 1 year after the date of the enactment of 
this Act, the Comptroller General of the United States shall submit to 
the appropriate congressional committees, the Committee on Armed 
Services of the Senate, and the Committee on Armed Services of the House 
of Representatives, a report assessing the extent to which executive 
agencies would have entered into or renewed contracts for the 
procurement of goods or services with persons that export sensitive 
technology to Iran if the prohibition under subsection (a) were not in 
effect.
SEC. 107. HARMONIZATION OF CRIMINAL PENALTIES FOR VIOLATIONS OF 
                        SANCTIONS.

    (a) In General.--
            (1) Violations of united nations security council 
        resolutions imposing sanctions.--Section 5(b) of the United 
        Nations Participation Act of 1945 (22 U.S.C. 287c(b)) is 
        amended--
                    (A) by striking ``find not more than $10,000'' and 
                inserting ``fined not more than $1,000,000''; and
                    (B) by striking ``ten years'' and all that follows 
                and inserting ``20 years, or both.''.
            (2) Violations of controls on exports and imports of defense 
        articles and defense services.--Section 38(c) of the Arms Export 
        Control Act (22 U.S.C. 2778(c)) is amended by striking ``ten 
        years'' and inserting ``20 years''.
            (3) Violations of prohibition on transactions with countries 
        that support acts of international terrorism.--Section 40(j) of 
        the Arms Export Control Act (22 U.S.C. 2780(j)) is amended by 
        striking ``10 years'' and inserting ``20 years''.
            (4) Violations of the trading with the enemy act.--Section 
        16(a) of the Trading with the enemy Act (50 U.S.C. App. 16(a)) 
        is amended by striking ``if a natural person'' and all that 
        follows and inserting ``if a natural person, be imprisoned for 
        not more than 20 years, or both.''.

    (b) <<NOTE: Deadline. Reports.>>  Study by United States Sentencing 
Commission.--Not later than 1 year after the date of the enactment of 
this Act, the United States Sentencing Commission, pursuant to the 
authority under sections 994 and 995 of title 28, United States Code, 
and the responsibility of the United States Sentencing Commission to 
advise Congress on sentencing policy under section 995(a)(20) of title 
28, United States Code, shall study and submit to Congress a report on 
the impact and advisability of imposing a mandatory minimum sentence for 
violations of--
            (1) section 5(a) of the United Nations Participation Act of 
        1945 (22 U.S.C. 287c(a));
            (2) sections 38, 39, and 40 of the Arms Export Control Act 
        (22 U.S.C. 2778, 2779, and 2780); and
            (3) the Trading with the enemy Act (50 U.S.C. App. 1 et 
        seq.).
SEC. 108. <<NOTE: 22 USC 8516.>>  AUTHORITY TO IMPLEMENT UNITED 
                        NATIONS SECURITY COUNCIL RESOLUTIONS 
                        IMPOSING SANCTIONS WITH RESPECT TO IRAN.

    In addition to any other authority of the President with respect to 
implementing resolutions of the United Nations Security Council,

[[Page 124 STAT. 1338]]

the President may prescribe such regulations as may be necessary to 
implement a resolution that is agreed to by the United Nations Security 
Council and imposes sanctions with respect to Iran.
SEC. 109. <<NOTE: 22 USC 8517.>>  INCREASED CAPACITY FOR EFFORTS 
                        TO COMBAT UNLAWFUL OR TERRORIST FINANCING.

    (a) Findings.--Congress finds the following:
            (1) The work of the Office of Terrorism and Financial 
        Intelligence of the Department of the Treasury, which includes 
        the Office of Foreign Assets Control and the Financial Crimes 
        Enforcement Network, is critical to ensuring that the 
        international financial system is not used for purposes of 
        supporting terrorism and developing weapons of mass destruction.
            (2) The Secretary of the Treasury has designated, including 
        most recently on June 16, 2010, various Iranian individuals and 
        banking, military, energy, and shipping entities as 
        proliferators of weapons of mass destruction pursuant to 
        Executive Order 13382 (50 U.S.C. 1701 note), thereby blocking 
        transactions subject to the jurisdiction of the United States by 
        those individuals and entities and their supporters.
            (3) The Secretary of the Treasury has also identified an 
        array of entities in the insurance, petroleum, and 
        petrochemicals industries that the Secretary has determined to 
        be owned or controlled by the Government of Iran and added those 
        entities to the list contained in Appendix A to part 560 of 
        title 31, Code of Federal Regulations (commonly known as the 
        ``Iranian Transactions Regulations''), thereby prohibiting 
        transactions between United States persons and those entities.

    (b) Authorization of Appropriations for Office of Terrorism and 
Financial Intelligence.--There are authorized to be appropriated to the 
Secretary of the Treasury for the Office of Terrorism and Financial 
Intelligence--
            (1) $102,613,000 for fiscal year 2011; and
            (2) such sums as may be necessary for each of the fiscal 
        years 2012 and 2013.

    (c) Authorization of Appropriations for the Financial Crimes 
Enforcement Network.--Section 310(d)(1) of title 31, United States Code, 
is amended by striking ``such sums as may be necessary for fiscal years 
2002, 2003, 2004, and 2005'' and inserting ``$100,419,000 for fiscal 
year 2011 and such sums as may be necessary for each of the fiscal years 
2012 and 2013''.
    (d) Authorization of Appropriations for Bureau of Industry and 
Security of the Department of Commerce.--There are authorized to be 
appropriated to the Secretary of Commerce for the Bureau of Industry and 
Security of the Department of Commerce--
            (1) $113,000,000 for fiscal year 2011; and
            (2) such sums as may be necessary for each of the fiscal 
        years 2012 and 2013.
SEC. 110. <<NOTE: President. 22 USC 8518.>>  REPORTS ON 
                        INVESTMENTS IN THE ENERGY SECTOR OF IRAN.

    (a) Initial Report.--
            (1) In general.--Not later than 90 days after the date of 
        the enactment of this Act, the President shall submit to the 
        appropriate congressional committees a report--

[[Page 124 STAT. 1339]]

                    (A) on investments in the energy sector of Iran that 
                were made during the period described in paragraph (2); 
                and
                    (B) that contains--
                          (i) an estimate of the volume of energy-
                      related resources (other than refined petroleum), 
                      including ethanol, that Iran imported during the 
                      period described in paragraph (2); and
                          (ii) a list of all significant known energy-
                      related joint ventures, investments, and 
                      partnerships located outside Iran that involve 
                      Iranian entities in partnership with entities from 
                      other countries, including an identification of 
                      the entities from other countries; and
                          (iii) an estimate of--
                                    (I) the total value of each such 
                                joint venture, investment, and 
                                partnership; and
                                    (II) the percentage of each such 
                                joint venture, investment, and 
                                partnership owned by an Iranian entity.
            (2) Period described.--The period described in this 
        paragraph is the period beginning on January 1, 2006, and ending 
        on the date that is 60 days after the date of the enactment of 
        this Act.

    (b) <<NOTE: Time period.>>  Updated Reports.--Not later than 180 
days after submitting the report required by subsection (a), and every 
180 days thereafter, the President shall submit to the appropriate 
congressional committees a report containing the matters required in the 
report under subsection (a)(1) for the 180-day period beginning on the 
date that is 30 days before the date on which the preceding report was 
required to be submitted by this section.
SEC. 111. <<NOTE: 22 USC 8519.>>  REPORTS ON CERTAIN ACTIVITIES OF 
                        FOREIGN EXPORT CREDIT AGENCIES AND OF THE 
                        EXPORT-IMPORT BANK OF THE UNITED STATES.

    (a) <<NOTE: President.>>  Report on Certain Activities of Export 
Credit Agencies of Foreign Countries.--
            (1) In general.--Not later than 90 days after the date of 
        the enactment of this Act, the President shall submit to the 
        appropriate congressional committees a report on any activity of 
        an export credit agency of a foreign country that is an activity 
        comparable to an activity described in subsection (a) or (b) of 
        section 5 of the Iran Sanctions Act of 1996, as amended by 
        section 102 of this Act.
            (2) Updates.--The President shall update the report required 
        by paragraph (1) as new information becomes available with 
        respect to the activities of export credit agencies of foreign 
        countries.

    (b) Report on Certain Financing by the Export-Import Bank of the 
United States.--Not later than 30 days (or, in extraordinary 
circumstances, not later than 15 days) before the Export-Import Bank of 
the United States approves cofinancing (including loans, guarantees, 
other credits, insurance, and reinsurance) in which an export credit 
agency of a foreign country identified in the report required by 
subsection (a) will participate, the President shall submit to the 
appropriate congressional committees a report identifying--
            (1) the export credit agency of the foreign country; and

[[Page 124 STAT. 1340]]

            (2) the beneficiaries of the financing.
SEC. 112. SENSE OF CONGRESS REGARDING IRAN'S REVOLUTIONARY GUARD 
                        CORPS AND ITS AFFILIATES.

    It is the sense of Congress that the United States should--
            (1) persistently target Iran's Revolutionary Guard Corps and 
        its affiliates with economic sanctions for its support for 
        terrorism, its role in proliferation, and its oppressive 
        activities against the people of Iran;
            (2) identify, as soon as possible--
                    (A) any foreign individual or entity that is an 
                agent, alias, front, instrumentality, official, or 
                affiliate of Iran's Revolutionary Guard Corps;
                    (B) any individual or entity that--
                          (i) has provided material support to any 
                      individual or entity described in subparagraph 
                      (A); or
                          (ii) has conducted any financial or commercial 
                      transaction with any such individual or entity; 
                      and
                    (C) any foreign government that--
                          (i) provides material support to any such 
                      individual or entity; or
                          (ii) conducts any commercial transaction or 
                      financial transaction with any such individual or 
                      entity; and
            (3) immediately impose sanctions, including travel 
        restrictions, sanctions authorized pursuant to this Act or the 
        Iran Sanctions Act of 1996, as amended by section 102 of this 
        Act, and the full range of sanctions available to the President 
        under the International Emergency Economic Powers Act (50 U.S.C. 
        1701 et seq.), on the individuals, entities, and governments 
        described in paragraph (2).
SEC. 113. SENSE OF CONGRESS REGARDING IRAN AND HEZBOLLAH.

    It is the sense of Congress that the United States should--
            (1) continue to counter support received by Hezbollah from 
        the Government of Iran and other foreign governments in response 
        to Hezbollah's terrorist activities and the threat Hezbollah 
        poses to Israel, the democratic sovereignty of Lebanon, and the 
        national security interests of the United States;
            (2) impose the full range of sanctions available to the 
        President under the International Emergency Economic Powers Act 
        (50 U.S.C. 1701 et seq.) on Hezbollah, affiliates and supporters 
        of Hezbollah designated for the imposition of sanctions under 
        that Act, and persons providing Hezbollah with commercial, 
        financial, or other services;
            (3) urge the European Union, individual countries in Europe, 
        and other countries to classify Hezbollah as a terrorist 
        organization to facilitate the disruption of Hezbollah's 
        operations; and
            (4) renew international efforts to disarm Hezbollah and 
        disband its militias in Lebanon, as called for by United Nations 
        Security Council Resolutions 1559 (2004) and 1701 (2006).
SEC. 114. SENSE OF CONGRESS REGARDING THE IMPOSITION OF 
                        MULTILATERAL SANCTIONS WITH RESPECT TO 
                        IRAN.

    It is the sense of Congress that--

[[Page 124 STAT. 1341]]

            (1) in general, effective multilateral sanctions are 
        preferable to unilateral sanctions in order to achieve desired 
        results from countries such as Iran; and
            (2) the President should continue to work with allies of the 
        United States to impose such sanctions as may be necessary to 
        prevent the Government of Iran from acquiring a nuclear weapons 
        capability.
SEC. 115. REPORT ON PROVIDING COMPENSATION FOR VICTIMS OF 
                        INTERNATIONAL TERRORISM.

    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 on equitable methods for providing compensation on a 
comprehensive basis to victims of acts of international terrorism who 
are citizens or residents of the United States or nationals of the 
United States (as defined in section 101(a) of the Immigration and 
Nationality Act (8 U.S.C. 1101(a)).

     TITLE II--DIVESTMENT FROM CERTAIN COMPANIES THAT INVEST IN IRAN

SEC. 201. <<NOTE: 22 USC 8531.>>  DEFINITIONS.

    In this title:
            (1) Energy sector of iran.--The term ``energy sector of 
        Iran'' refers to activities to develop petroleum or natural gas 
        resources or nuclear power in Iran.
            (2) Financial institution.--The term ``financial 
        institution'' 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).
            (3) Iran.--The term ``Iran'' includes the Government of Iran 
        and any agency or instrumentality of Iran.
            (4) Person.--The term ``person'' means--
                    (A) a natural person, corporation, company, business 
                association, partnership, society, trust, or any other 
                nongovernmental entity, organization, or group;
                    (B) any governmental entity or instrumentality of a 
                government, including a multilateral development 
                institution (as defined in section 1701(c)(3) of the 
                International Financial Institutions Act (22 U.S.C. 
                262r(c)(3))); and
                    (C) any successor, subunit, parent entity, or 
                subsidiary of, or any entity under common ownership or 
                control with, any entity described in subparagraph (A) 
                or (B).
            (5) State.--The term ``State'' means each of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Commonwealth of the Northern Mariana Islands, American 
        Samoa, Guam, the United States Virgin Islands, and any other 
        territory or possession of the United States.
            (6) State or local government.--The term ``State or local 
        government'' includes--
                    (A) any State and any agency or instrumentality 
                thereof;
                    (B) any local government within a State, and any 
                agency or instrumentality thereof;
                    (C) any other governmental instrumentality of a 
                State or locality; and

[[Page 124 STAT. 1342]]

                    (D) any public institution of higher education 
                within the meaning of the Higher Education Act of 1965 
                (20 U.S.C. 1001 et seq.).
SEC. 202. <<NOTE: 22 USC 8532.>>  AUTHORITY OF STATE AND LOCAL 
                        GOVERNMENTS TO DIVEST FROM CERTAIN 
                        COMPANIES THAT INVEST IN IRAN.

    (a) Sense of Congress.--It is the sense of Congress that the United 
States should support the decision of any State or local government that 
for moral, prudential, or reputational reasons divests from, or 
prohibits the investment of assets of the State or local government in, 
a person that engages in investment activities in the energy sector of 
Iran, as long as Iran is subject to economic sanctions imposed by the 
United States.
    (b) Authority to Divest.--Notwithstanding any other provision of 
law, a State or local government may adopt and enforce measures that 
meet the requirements of subsection (d) to divest the assets of the 
State or local government from, or prohibit investment of the assets of 
the State or local government in, any person that the State or local 
government determines, using credible information available to the 
public, engages in investment activities in Iran described in subsection 
(c).
    (c) Investment Activities Described.--A person engages in investment 
activities in Iran described in this subsection if the person--
            (1) has an investment of $20,000,000 or more in the energy 
        sector of Iran, including in a person that provides oil or 
        liquified natural gas tankers, or products used to construct or 
        maintain pipelines used to transport oil or liquified natural 
        gas, for the energy sector of Iran; or
            (2) is a financial institution that extends $20,000,000 or 
        more in credit to another person, for 45 days or more, if that 
        person will use the credit for investment in the energy sector 
        of Iran.

    (d) Requirements.--Any measure taken by a State or local government 
under subsection (b) shall meet the following requirements:
            (1) Notice.--The State or local government shall provide 
        written notice to each person to which a measure is to be 
        applied.
            (2) Timing.-- <<NOTE: Applicability. Effective date.>> The 
        measure shall apply to a person not earlier than the date that 
        is 90 days after the date on which written notice is provided to 
        the person under paragraph (1).
            (3) Opportunity for hearing.--The State or local government 
        shall provide an opportunity to comment in writing to each 
        person to which a measure is to be applied. If the person 
        demonstrates to the State or local government that the person 
        does not engage in investment activities in Iran described in 
        subsection (c), the measure shall not apply to the person.
            (4) Sense of congress on avoiding erroneous targeting.--It 
        is the sense of Congress that a State or local government should 
        not adopt a measure under subsection (b) with respect to a 
        person unless the State or local government has made every 
        effort to avoid erroneously targeting the person and has 
        verified that the person engages in investment activities in 
        Iran described in subsection (c).

    (e) Notice to Department of Justice.-- <<NOTE: Deadline.>> Not later 
than 30 days after adopting a measure pursuant to subsection (b), a 
State

[[Page 124 STAT. 1343]]

or local government shall submit written notice to the Attorney General 
describing the measure.

    (f) Nonpreemption.--A measure of a State or local government 
authorized under subsection (b) or (i) is not preempted by any Federal 
law or regulation.
    (g) Definitions.--In this section:
            (1) Assets.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the term ``assets'' refers to public monies and 
                includes any pension, retirement, annuity, or endowment 
                fund, or similar instrument, that is controlled by a 
                State or local government.
                    (B) Exception.--The term ``assets'' does not include 
                employee benefit plans covered by title I of the 
                Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1001 et seq.).
            (2) Investment.--The ``investment'' includes--
                    (A) a commitment or contribution of funds or 
                property;
                    (B) a loan or other extension of credit; and
                    (C) the entry into or renewal of a contract for 
                goods or services.

    (h) <<NOTE: Applicability.>>  Effective Date.--
            (1) In general.--Except as provided in paragraph (2) or 
        subsection (i), this section applies to measures adopted by a 
        State or local government before, on, or after the date of the 
        enactment of this Act.
            (2) Notice requirements.--Except as provided in subsection 
        (i), subsections (d) and (e) apply to measures adopted by a 
        State or local government on or after the date of the enactment 
        of this Act.

    (i) Authorization for Prior Enacted Measures.--
            (1) In general.--Notwithstanding any other provision of this 
        section or any other provision of law, a State or local 
        government may enforce a measure (without regard to the 
        requirements of subsection (d), except as provided in paragraph 
        (2)) adopted by the State or local government before the date of 
        the enactment of this Act that provides for the divestment of 
        assets of the State or local government from, or prohibits the 
        investment of the assets of the State or local government in, 
        any person that the State or local government determines, using 
        credible information available to the public, engages in 
        investment activities in Iran (determined without regard to 
        subsection (c)) or other business activities in Iran that are 
        identified in the measure.
            (2) Application of notice requirements.-- <<NOTE: Effective 
        date.>> A measure described in paragraph (1) shall be subject to 
        the requirements of paragraphs (1) and (2) and the first 
        sentence of paragraph (3) of subsection (d) on and after the 
        date that is 2 years after the date of the enactment of this 
        Act.
SEC. 203. SAFE HARBOR FOR CHANGES OF INVESTMENT POLICIES BY ASSET 
                        MANAGERS.

    (a) In General.--Section 13(c)(1) of the Investment Company Act of 
1940 (15 U.S.C. 80a-13(c)(1)) is amended to read as follows:
            ``(1) In general.--Notwithstanding any other provision of 
        Federal or State law, no person may bring any civil, criminal,

[[Page 124 STAT. 1344]]

        or administrative action against any registered investment 
        company, or any employee, officer, director, or investment 
        adviser thereof, based solely upon the investment company 
        divesting from, or avoiding investing in, securities issued by 
        persons that the investment company determines, using credible 
        information available to the public--
                    ``(A) conduct or have direct investments in business 
                operations in Sudan described in section 3(d) of the 
                Sudan Accountability and Divestment Act of 2007 (50 
                U.S.C. 1701 note); or
                    ``(B) engage in investment activities in Iran 
                described in section 202(c) of the Comprehensive Iran 
                Sanctions, Accountability, and Divestment Act of 
                2010.''.

    (b) SEC Regulations.-- <<NOTE: Deadline. 15 USC 80a-13 note.>> Not 
later than 120 days after the date of the enactment of this Act, the 
Securities and Exchange Commission shall issue any revisions the 
Commission determines to be necessary to the regulations requiring 
disclosure by each registered investment company that divests itself of 
securities in accordance with section 13(c) of the Investment Company 
Act of 1940 to include divestments of securities in accordance with 
paragraph (1)(B) of such section, as added by subsection (a) of this 
section.
SEC. 204. SENSE OF CONGRESS REGARDING CERTAIN ERISA PLAN 
                        INVESTMENTS.

    It is the sense of Congress that a fiduciary of an employee benefit 
plan, as defined in section 3(3) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1002(3)), may divest plan assets from, 
or avoid investing plan assets in, any person the fiduciary determines 
engages in investment activities in Iran described in section 202(c) of 
this Act, without breaching the responsibilities, obligations, or duties 
imposed upon the fiduciary by subparagraph (A) or (B) of section 
404(a)(1) of the Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1104(a)(1)), if--
            (1) the fiduciary makes such determination using credible 
        information that is available to the public; and
            (2) the fiduciary prudently determines that the result of 
        such divestment or avoidance of investment would not be expected 
        to provide the employee benefit plan with--
                    (A) a lower rate of return than alternative 
                investments with commensurate degrees of risk; or
                    (B) a higher degree of risk than alternative 
                investments with commensurate rates of return.
SEC. 205. TECHNICAL CORRECTIONS TO SUDAN ACCOUNTABILITY AND 
                        DIVESTMENT ACT OF 2007.

    (a) ERISA Plan Investments.--Section 5 of the Sudan Accountability 
and Divestment Act of 2007 (Public Law 110-174; 50 U.S.C. 1701 note) is 
amended--
            (1) by striking ``section 404 of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 1104)'' and inserting 
        ``subparagraph (A) or (B) of section 404(a)(1) of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1104(a)(1))''; 
        and
            (2) by striking paragraph (2) and inserting the following:
            ``(2) the fiduciary prudently determines that the result of 
        such divestment or avoidance of investment would not be expected 
        to provide the employee benefit plan with--

[[Page 124 STAT. 1345]]

                    ``(A) a lower rate of return than alternative 
                investments with commensurate degrees of risk; or
                    ``(B) a higher degree of risk than alternative 
                investments with commensurate rates of return.''.

    (b) Safe Harbor for Changes of Investment Policies by Asset 
Managers.--
            (1) In general.--Section 13(c)(2)(A) of the Investment 
        Company Act of 1940 (15 U.S.C. 80a-13(c)(2)(A)) is amended to 
        read as follows:
                    ``(A) Rule of construction.--Nothing in paragraph 
                (1) shall be construed to create, imply, diminish, 
                change, or affect in any way whether or not a private 
                right of action exists under subsection (a) or any other 
                provision of this Act.''.
            (2) <<NOTE: 15 USC 80a-13 note.>>  Applicability.--The 
        amendment made by paragraph (1) shall apply as if included in 
        the Sudan Accountability and Divestment Act of 2007 (Public Law 
        110-174; 50 U.S.C. 1701 note).

   TITLE III--PREVENTION OF DIVERSION OF CERTAIN GOODS, SERVICES, AND 
                          TECHNOLOGIES TO IRAN

SEC. 301. <<NOTE: 15 USC 8541.>>  DEFINITIONS.

    In this title:
            (1) Allow.--The term ``allow'', with respect to the 
        diversion through a country of goods, services, or technologies, 
        means the government of the country knows or has reason to know 
        that the territory of the country is being used for such 
        diversion.
            (2) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Banking, Housing, and Urban 
                Affairs, the Committee on Foreign Relations, and the 
                Select Committee on Intelligence of the Senate; and
                    (B) the Committee on Foreign Affairs and the 
                Permanent Select Committee on Intelligence of the House 
                of Representatives.
            (3) Commerce control list.--The term ``Commerce Control 
        List'' means the list maintained pursuant to part 774 of the 
        Export Administration Regulations (or any corresponding similar 
        regulation or ruling).
            (4) Divert; diversion.--The terms ``divert'' and 
        ``diversion'' refer to the transfer or release, directly or 
        indirectly, of a good, service, or technology to an end-user or 
        an intermediary that is not an authorized recipient of the good, 
        service, or technology.
            (5) End-user.--The term ``end-user'', with respect to a 
        good, service, or technology, means the person that receives and 
        ultimately uses the good, service, or technology.
            (6) Export administration regulations.--The term ``Export 
        Administration Regulations'' means subchapter C of chapter VII 
        of title 15, Code of Federal Regulations (or any corresponding 
        similar regulation or ruling).
            (7) Government.--The term ``government'' includes any agency 
        or instrumentality of a government.

[[Page 124 STAT. 1346]]

            (8) Intermediary.--The term ``intermediary'' means a person 
        that receives a good, service, or technology while the good, 
        service, or technology is in transit to the end-user of the 
        good, service, or technology.
            (9) International traffic in arms regulations.--The term 
        ``International Traffic in Arms Regulations'' means subchapter M 
        of chapter I of title 22, Code of Federal Regulations (or any 
        corresponding similar regulation or ruling).
            (10) Iran.--The term ``Iran'' includes the Government of 
        Iran and any agency or instrumentality of Iran.
            (11) Iranian end-user.--The term ``Iranian end-user'' means 
        an end-user that is the Government of Iran or a person in, or an 
        agency or instrumentality of, Iran.
            (12) Iranian intermediary.--The term ``Iranian 
        intermediary'' means an intermediary that is the Government of 
        Iran or a person in, or an agency or instrumentality of, Iran.
            (13) State sponsor of terrorism.--The term ``state sponsor 
        of terrorism'' means any country the government of which the 
        Secretary of State has determined has repeatedly provided 
        support for acts of international terrorism pursuant to--
                    (A) section 6(j)(1)(A) of the Export Administration 
                Act of 1979 (50 U.S.C. App. 2405(j)(1)(A)) (or any 
                successor thereto);
                    (B) section 40(d) of the Arms Export Control Act (22 
                U.S.C. 2780(d)); or
                    (C) section 620A(a) of the Foreign Assistance Act of 
                1961 (22 U.S.C. 2371(a)).
            (14) United states munitions list.--The term ``United States 
        Munitions List'' means the list maintained pursuant to part 121 
        of the International Traffic in Arms Regulations (or any 
        corresponding similar regulation or ruling).
SEC. 302. <<NOTE: 22 USC 8542.>>  IDENTIFICATION OF COUNTRIES OF 
                        CONCERN WITH RESPECT TO THE DIVERSION OF 
                        CERTAIN GOODS, SERVICES, AND TECHNOLOGIES 
                        TO OR THROUGH IRAN.

    (a) In General.-- <<NOTE: Deadline. Reports.>> Not later than 180 
days after the date of the enactment of this Act, the Director of 
National Intelligence shall submit to the President, the Secretary of 
Defense, the Secretary of Commerce, the Secretary of State, the 
Secretary of the Treasury, and the appropriate congressional committees 
a report that identifies each country the government of which the 
Director believes, based on all information available to the Director, 
is allowing the diversion through the country of goods, services, or 
technologies described in subsection (b) to Iranian end-users or Iranian 
intermediaries.

    (b) Goods, Services, and Technologies Described.--Goods, services, 
or technologies described in this subsection are goods, services, or 
technologies--
            (1) that--
                    (A) originated in the United States;
                    (B) would make a material contribution to Iran's--
                          (i) development of nuclear, chemical, or 
                      biological weapons;
                          (ii) ballistic missile or advanced 
                      conventional weapons capabilities; or
                          (iii) support for international terrorism; and

[[Page 124 STAT. 1347]]

                    (C) are--
                          (i) items on the Commerce Control List or 
                      services related to those items; or
                          (ii) defense articles or defense services on 
                      the United States Munitions List; or
            (2) that are prohibited for export to Iran under a 
        resolution of the United Nations Security Council.

    (c) Updates.--The Director of National Intelligence shall update the 
report required by subsection (a)--
            (1) as new information becomes available; and
            (2) not less frequently than annually.

    (d) Form.--The report required by subsection (a) and the updates 
required by subsection (c) may be submitted in classified form.
SEC. 303. <<NOTE: President. 22 USC 8543.>>  DESTINATIONS OF 
                        DIVERSION CONCERN.

    (a) Designation.--
            (1) In general.--The President shall designate a country as 
        a Destination of Diversion Concern if the President determines 
        that the government of the country allows substantial diversion 
        of goods, services, or technologies described in section 302(b) 
        through the country to Iranian end-users or Iranian 
        intermediaries.
            (2) Determination of substantial.--For purposes of paragraph 
        (1), the President shall determine whether the government of a 
        country allows substantial diversion of goods, services, or 
        technologies described in section 302(b) through the country to 
        Iranian end-users or Iranian intermediaries based on criteria 
        that include--
                    (A) the volume of such goods, services, and 
                technologies that are diverted through the country to 
                such end-users or intermediaries;
                    (B) the inadequacy of the export controls of the 
                country;
                    (C) the unwillingness or demonstrated inability of 
                the government of the country to control the diversion 
                of such goods, services, and technologies to such end-
                users or intermediaries; and
                    (D) the unwillingness or inability of the government 
                of the country to cooperate with the United States in 
                efforts to interdict the diversion of such goods, 
                services, or technologies to such end-users or 
                intermediaries.

    (b) Report on Designation.--Upon designating a country as a 
Destination of Diversion Concern under subsection (a), the President 
shall submit to the appropriate congressional committees a report--
            (1) notifying those committees of the designation of the 
        country; and
            (2) containing a list of the goods, services, and 
        technologies described in section 302(b) that the President 
        determines are diverted through the country to Iranian end-users 
        or Iranian intermediaries.

    (c) Licensing Requirement.-- <<NOTE: Deadline.>> Not later than 45 
days after submitting a report required by subsection (b) with respect 
to a country designated as a Destination of Diversion Concern under 
subsection (a), the President shall require a license under the Export 
Administration Regulations or the International Traffic in Arms 
Regulations (whichever is applicable) to export to that country

[[Page 124 STAT. 1348]]

a good, service, or technology on the list required under subsection 
(b)(2), with the presumption that any application for such a license 
will be denied.

    (d) Delay of Imposition of Licensing Requirement.--
            (1) In general.-- <<NOTE: Time period. Determination.>> The 
        President may delay the imposition of the licensing requirement 
        under subsection (c) with respect to a country designated as a 
        Destination of Diversion Concern under subsection (a) for a 12-
        month period if the President--
                    (A) determines that the government of the country is 
                taking steps--
                          (i) to institute an export control system or 
                      strengthen the export control system of the 
                      country;
                          (ii) to interdict the diversion of goods, 
                      services, or technologies described in section 
                      302(b) through the country to Iranian end-users or 
                      Iranian intermediaries; and
                          (iii) to comply with and enforce United 
                      Nations Security Council Resolutions 1696 (2006), 
                      1737 (2006), 1747 (2007), 1803 (2008), and 1929 
                      (2010), and any other resolution that is agreed to 
                      by the Security Council and imposes sanctions with 
                      respect to Iran;
                    (B) determines that it is appropriate to carry out 
                government-to-government activities to strengthen the 
                export control system of the country; and
                    (C) <<NOTE: Reports.>>  submits to the appropriate 
                congressional committees a report describing the steps 
                specified in subparagraph (A) being taken by the 
                government of the country.
            (2) Additional 12-month periods.--The President may delay 
        the imposition of the licensing requirement under subsection (c) 
        with respect to a country designated as a Destination of 
        Diversion Concern under subsection (a) for additional 12-month 
        periods after the 12-month period referred to in paragraph (1) 
        if the President, for each such 12-month period--
                    (A) makes the determinations described in 
                subparagraphs (A) and (B) of paragraph (1) with respect 
                to the country; and
                    (B) submits to the appropriate congressional 
                committees an updated version of the report required by 
                subparagraph (C) of paragraph (1).
            (3) <<NOTE: Determination.>>  Strengthening export control 
        systems.--If the President determines under paragraph (1)(B) 
        that is it appropriate to carry out government-to-government 
        activities to strengthen the export control system of a country 
        designated as a Destination of Diversion Concern under 
        subsection (a), the United States shall initiate government-to-
        government activities that may include--
                    (A) cooperation by agencies and departments of the 
                United States with counterpart agencies and departments 
                in the country--
                          (i) to develop or strengthen the export 
                      control system of the country;
                          (ii) to strengthen cooperation among agencies 
                      of the country and with the United States and 
                      facilitate enforcement of the export control 
                      system of the country; and

[[Page 124 STAT. 1349]]

                          (iii) to promote information and data 
                      exchanges among agencies of the country and with 
                      the United States;
                    (B) training officials of the country to strengthen 
                the export control systems of the country--
                          (i) to facilitate legitimate trade in goods, 
                      services, and technologies; and
                          (ii) to prevent terrorists and state sponsors 
                      of terrorism, including Iran, from obtaining 
                      nuclear, biological, and chemical weapons, defense 
                      technologies, components for improvised explosive 
                      devices, and other defense articles; and
                    (C) encouraging the government of the country to 
                participate in the Proliferation Security Initiative, 
                such as by entering into a ship boarding agreement 
                pursuant to the Initiative.

    (e) Termination of 
Designation. <<NOTE: Determination. Certification.>> --The designation 
of a country as a Destination of Diversion Concern under subsection (a) 
shall terminate on the date on which the President determines, and 
certifies to the appropriate congressional committees, that the country 
has adequately strengthened the export control system of the country to 
prevent the diversion of goods, services, and technologies described in 
section 302(b) to Iranian end-users or Iranian intermediaries.

    (f) Form of Reports.--A report required by subsection (b) or (d) may 
be submitted in classified form.
SEC. 304. REPORT ON EXPANDING DIVERSION CONCERN SYSTEM TO ADDRESS 
                        THE DIVERSION OF UNITED STATES ORIGIN 
                        GOODS, SERVICES, AND TECHNOLOGIES TO 
                        CERTAIN COUNTRIES OTHER THAN IRAN.

    (a) In General. <<NOTE: President.>> --Not later than 1 year after 
the date of the enactment of this Act, the President shall submit to the 
appropriate congressional committees a report that--
            (1) <<NOTE: Determination.>>  identifies any country that 
        the President determines is allowing the diversion, in violation 
        of United States law, of items on the Commerce Control List or 
        services related to those items, or defense articles or defense 
        services on the United States Munitions List, that originated in 
        the United States to another country if such other country--
                    (A) is seeking to obtain nuclear, biological, or 
                chemical weapons, or ballistic missiles; or
                    (B) provides support for acts of international 
                terrorism; and
            (2) assesses the feasability and advisability of expanding 
        the system established under section 303 for designating 
        countries as Destinations of Diversion Concern to include 
        countries identified under paragraph (1).

    (b) Form.--The report required by subsection (a) may be submitted in 
classified form.
SEC. 305. <<NOTE: 22 USC 8544.>>  ENFORCEMENT AUTHORITY.

    The Secretary of Commerce may designate any employee of the Office 
of Export Enforcement of the Department of Commerce to conduct 
activities specified in clauses (i), (ii), and (iii) of section 
12(a)(3)(B) of the Export Administration Act of 1979 (50 U.S.C. App. 
2411(a)(3)(B)) when the employee is carrying out activities to enforce--

[[Page 124 STAT. 1350]]

            (1) the provisions of the Export Administration Act of 1979 
        (50 U.S.C. App. 2401 et seq.) (as in effect pursuant to the 
        International Emergency Economic Powers Act (50 U.S.C. 1701 et 
        seq.));
            (2) the provisions of this title, or any other provision of 
        law relating to export controls, with respect to which the 
        Secretary of Commerce has enforcement responsibility; or
            (3) any license, order, or regulation issued under--
                    (A) the Export Administration Act of 1979 (50 U.S.C. 
                App. 2401 et seq.) (as in effect pursuant to the 
                International Emergency Economic Powers Act (50 U.S.C. 
                1701 et seq.)); or
                    (B) a provision of law referred to in paragraph (2).

                      TITLE IV--GENERAL PROVISIONS

SEC. 401. <<NOTE: 22 USC 8551.>>  GENERAL PROVISIONS.

    (a) Sunset.-- <<NOTE: President. Certification.>> The provisions of 
this Act (other than sections 105 and 305 and the amendments made by 
sections 102, 107, 109, and 205) shall terminate, and section 
13(c)(1)(B) of the Investment Company Act of 1940, as added by section 
203(a), shall cease to be effective, on the date that is 30 days after 
the date on which the President certifies to Congress that--
            (1) the Government of Iran has ceased providing support for 
        acts of international terrorism and no longer satisfies the 
        requirements for designation as a state sponsor of terrorism (as 
        defined in section 301) under--
                    (A) section 6(j)(1)(A) of the Export Administration 
                Act of 1979 (50 U.S.C. App. 2405(j)(1)(A)) (or any 
                successor thereto);
                    (B) section 40(d) of the Arms Export Control Act (22 
                U.S.C. 2780(d)); or
                    (C) section 620A(a) of the Foreign Assistance Act of 
                1961 (22 U.S.C. 2371(a)); and
            (2) Iran has ceased the pursuit, acquisition, and 
        development of nuclear, biological, and chemical weapons and 
        ballistic missiles and ballistic missile launch technology.

    (b) Presidential Waivers.--
            (1) In general. <<NOTE: Determination.>> --The President may 
        waive the application of sanctions under section 103(b), the 
        requirement to impose or maintain sanctions with respect to a 
        person under section 105(a), the requirement to include a person 
        on the list required by section 105(b), the application of the 
        prohibition under section 106(a), or the imposition of the 
        licensing requirement under section 303(c) with respect to a 
        country designated as a Destination of Diversion Concern under 
        section 303(a), if the President determines that such a waiver 
        is in the national interest of the United States.
            (2) Reports.--
                    (A) In general.--If the President waives the 
                application of a provision pursuant to paragraph (1), 
                the President shall submit to the appropriate 
                congressional committees a report describing the reasons 
                for the waiver.
                    (B) Special rule for report on waiving imposition of 
                licensing requirement under section 303(c).--In any case 
                in which the President waives, pursuant to paragraph

[[Page 124 STAT. 1351]]

                (1), the imposition of the licensing requirement under 
                section 303(c) with respect to a country designated as a 
                Destination of Diversion Concern under section 303(a), 
                the President shall include in the report required by 
                subparagraph (A) of this paragraph an assessment of 
                whether the government of the country is taking the 
                steps described in subparagraph (A) of section 
                303(d)(1).

    (c) Authorizations of Appropriations.--
            (1) Authorization of appropriations for the department of 
        state and the department of the treasury.--There are authorized 
        to be appropriated to the Secretary of State and to the 
        Secretary of the Treasury such sums as may be necessary to 
        implement the provisions of, and amendments made by, titles I 
        and III of this Act.
            (2) Authorization of appropriations for the department of 
        commerce.--There are authorized to be appropriated to the 
        Secretary of Commerce such sums as may be necessary to carry out 
        title III.
SEC. 402. DETERMINATION OF BUDGETARY EFFECTS.

    The budgetary effects of this Act, for the purpose of complying with 
the Statutory Pay-As-You-Go-Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, jointly submitted for printing in the 
Congressional Record by the Chairmen of the House and Senate Budget 
Committees, provided that such statement has been submitted prior to the 
vote on passage in the House acting first on this conference report or 
amendment between the Houses.

    Approved July 1, 2010.

LEGISLATIVE HISTORY--H.R. 2194:
---------------------------------------------------------------------------

HOUSE REPORTS: Nos. 111-342, Pt. 1 (Comm. on Foreign Affairs) and 111-
512 (Comm. of Conference).
CONGRESSIONAL RECORD:
                                                        Vol. 155 (2009):
                                    Dec. 15, considered and passed 
                                        House.
                                                        Vol. 156 (2010):
                                    Mar. 11, considered and passed 
                                        Senate, amended.
                                    June 24, Senate and House agreed to 
                                        conference report.
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2010):
            July 1, Presidential remarks.

                                  <all>