S.1881 - Nuclear Weapon Free Iran Act of 2013113th Congress (2013-2014)

(a) Short title.—This Act may be cited as the “Nuclear Weapon Free Iran Act of 2013”.

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

(a) Findings.—Congress makes the following findings:

(1) The Government of Iran continues to expand the nuclear and missile programs of Iran in violation of multiple United Nations Security Council resolutions.

(2) The Government of Iran has a decades-long track record of violating commitments regarding the nuclear program of Iran and has used diplomatic negotiations as a subterfuge to advance its nuclear weapons program.

(3) Iran remains the world’s foremost state sponsor of terrorism, having directed, supported, and financed acts of terrorism against the United States and its allies that have resulted in the thousands of deaths, including the deaths of United States citizens and members of the Armed Forces of the United States.

(4) The Government of Iran and its terrorist proxies, particularly Lebanese Hezbollah, continue to provide military and financial support to the regime of Bashar al-Assad in Syria, aiding that regime in the mass killing of the people of Syria.

(5) The Government of Iran continues to sow instability in the Middle East and threaten its neighbors, including allies of the United States, such as Israel.

(6) The Government of Iran denies its people fundamental freedoms, including freedom of the press, freedom of assembly, freedom of religion, and freedom of conscience.

(7) Strict sanctions on Iran, imposed by the United States and the international community, are responsible for bringing Iran to the negotiating table.

(8) President Hassan Rouhani of Iran has in the past admitted to using diplomatic negotiations to buy time for Iran to make nuclear advances.

(9) Based on Iran’s current stockpile of uranium enriched to 3.5 percent and 20 percent and its current centrifuge capacity, Iran could produce a sufficient quantity of weapons-grade uranium for a bomb in one to 2 months’ time.

(10) If the Government of Iran commences the operation of its heavy water reactor in Arak, it could establish an alternate pathway to a nuclear weapon through the production of plutonium.

(11) As of the date of the enactment of this Act, 19 countries access nuclear energy for peaceful purposes without conducting any enrichment or reprocessing activities within those countries.

(12) The Government of Iran could likewise access nuclear energy for peaceful purposes without conducting any enrichment or reprocessing activities within Iran.

(b) Sense of Congress.—It is the sense of Congress that—

(1) the Government of Iran must not be allowed to develop or maintain nuclear weapon capabilities;

(2) all instruments of power and influence of the United States should remain on the table to prevent the Government of Iran from developing nuclear weapon capabilities;

(3) the Government of Iran does not have an absolute or inherent right to enrichment and reprocessing capabilities and technologies 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 imposition of sanctions under this Act, including sanctions on exports of petroleum from Iran, is triggered by violations by Iran of any interim or final agreement regarding its nuclear program, failure to reach a final agreement in a discernible time frame, or the breach of other conditions described in section 301;

(5) if the Government of Israel is compelled to take military action in legitimate self-defense against Iran's nuclear weapon program, the United States Government should stand with Israel and provide, in accordance with the law of the United States and the constitutional responsibility of Congress to authorize the use of military force, diplomatic, military, and economic support to the Government of Israel in its defense of its territory, people, and existence;

(6) the United States should continue to impose sanctions on the Government of Iran and its terrorist proxies for their continuing sponsorship of terrorism; and

(7) the United States should continue to impose sanctions on the Government of Iran for—

(A) its ongoing abuses of human rights; and

(B) its actions in support of Bashar al-Assad in Syria.

(a) In general.—Section 1245(d)(4)(D)(i) of the National Defense Authorization Act for Fiscal Year 2012 (22 U.S.C. 8513a(d)(4)(D)(i)) is amended—

(1) in subclause (I), by striking “reduced reduced its volume of crude oil purchases from Iran” and inserting “reduced the volume of its purchases of petroleum from Iran or of Iranian origin”; and

(2) in subclause (II), by striking “crude oil purchases from Iran” and inserting “purchases of petroleum from Iran or of Iranian origin”.

(b) Definitions.—Section 1245(h) of the National Defense Authorization Act for Fiscal Year 2012 (22 U.S.C. 8513a(h)) is amended—

(1) by redesignating paragraphs (3) and (4) as paragraphs (5) and (6), respectively; and

(2) by inserting after paragraph (2) the following:

“(3) IRANIAN ORIGIN.—The term ‘Iranian origin’, with respect to petroleum, means extracted, produced, or refined in Iran.

“(4) PETROLEUM.—The term ‘petroleum’ includes crude oil, lease condensates, fuel oils, and other unfinished oils.”.

(c) Conforming amendments.—Section 102(b) of the Iran Threat Reduction and Syria Human Rights Act of 2012 (22 U.S.C. 8712(b)) is amended—

(1) in paragraph (3)—

(A) by striking “crude oil purchases from Iran” and inserting “purchases of petroleum from Iran or of Iranian origin”; and

(B) by striking “as amended by section 504,”; and

(2) in paragraph (4), by striking “crude oil purchases” and inserting “purchases of petroleum from Iran or of Iranian origin”.

(d) Effective date.—The amendments made by this section shall apply with respect to determinations under section 1245(d)(4)(D)(i) of the National Defense Authorization Act for Fiscal Year 2012 (22 U.S.C. 8513a(d)(4)(D)(i)) on or after the date that is 90 days after the date of the enactment of this Act.

(a) Statement of policy.—It is the policy of the United States to seek to ensure that all countries reduce their purchases of crude oil, lease condensates, fuel oils, and other unfinished oils from Iran or of Iranian origin to a de minimis level by the end of the 1-year period beginning on the date of the enactment of this Act.

(b) Ineligibility for exceptions to sanctions.—Section 1245(d)(4)(D) of the National Defense Authorization Act for Fiscal Year 2012 (22 U.S.C. 8513a(d)(4)(D)) is amended by adding at the end the following:

“(iii) INELIGIBILITY FOR EXCEPTION.—

“(I) IN GENERAL.—A country that purchased petroleum from Iran or of Iranian origin during the one-year period preceding the date of the enactment of the Nuclear Weapon Free Iran Act of 2013 may continue to receive an exception under clause (i) on or after the date that is one year after such date of enactment only—

“(aa) if the country reduces its purchases of petroleum from Iran or of Iranian origin to a de minimis level by the end of the one-year period beginning on such date of enactment; or

“(bb) as provided in subclause (II) or (III).

“(II) COUNTRIES THAT DRAMATICALLY REDUCE PURCHASES.—

“(aa) IN GENERAL.—A country that would otherwise be ineligible pursuant to subclause (I)(aa) to receive an exception under clause (i) may continue to receive such an exception during the one-year period beginning on the date that is one year after the date of the enactment of the Nuclear Weapon Free Iran Act of 2013 if the country—

“(AA) dramatically reduces by at least 30 percent its purchases of petroleum from Iran or of Iranian origin during the one-year period beginning on such date of enactment; and

“(BB) is expected to reduce its purchases of petroleum from Iran or of Iranian origin to a de minimis level within a defined period of time that is not longer than 2 years after such date of enactment.

“(bb) TERMINATION OF EXCEPTION.—If a country that continues to receive an exception under clause (i) pursuant to item (aa) does not reduce its purchases of petroleum from Iran or of Iranian origin to a de minimis level by the date that is 2 years after the date of the enactment of the Nuclear Weapon Free Iran Act of 2013, that country shall not be eligible for such an exception on or after the date that is 2 years after such date of enactment.

“(III) REINSTATEMENT OF ELIGIBILITY FOR EXCEPTION.—A country that becomes ineligible for an exception under clause (i) pursuant to subclause (I) or (II) shall be eligible for such an exception in accordance with the provisions of clause (i) on and after the date on which the President determines the country has reduced its purchases of petroleum from Iran or of Iranian origin to a de minimis level.”.

(c) Conforming amendment.—Section 1245(d)(4)(D)(i) of the National Defense Authorization Act for Fiscal Year 2012 (22 U.S.C. 8513a(d)(4)(D)(i)) is amended in the matter preceding subclause (I) by striking “Sanctions imposed” and inserting “Except as provided in clause (iii), sanctions imposed”.

(a) Findings.—Section 1244(a)(1) of the Iran Freedom and Counter-Proliferation Act of 2012 (22 U.S.C. 8803(a)(1)) is amended by striking “and shipbuilding” and inserting “shipbuilding, construction, engineering, and mining”.

(b) Expansion of designation of entities of proliferation concern.—Section 1244(b) of the Iran Freedom and Counter-Proliferation Act of 2012 (22 U.S.C. 8803(b)) is amended by striking “in Iran and entities in the energy, shipping, and shipbuilding sectors” and inserting “, special economic zones, or free economic zones in Iran, and entities in strategic sectors”.

(c) Expansion of entities subject to asset freeze.—Section 1244(c) of the Iran Freedom and Counter-Proliferation Act of 2012 (22 U.S.C. 8803(c)) is amended—

(1) in paragraph (1)(A), by striking “the date that is 180 days after the date of the enactment of this Act” and inserting “the date that is 90 days after the date of the enactment of the Nuclear Weapon Free Iran Act of 2013”; and

(2) in paragraph (2)—

(A) in the matter preceding subparagraph (A), by striking “the date that is 180 days after the date of the enactment of this Act” and inserting “the date that is 90 days after the date of the enactment of the Nuclear Weapon Free Iran Act of 2013”;

(B) by striking “the energy, shipping, or shipbuilding sectors” each place it appears and inserting “a strategic sector”; and

(C) by inserting “, special economic zone, or free economic zone” after “port” each place it appears; and

(3) by adding at the end the following:

“(4) STRATEGIC SECTOR DEFINED.—

“(A) IN GENERAL.—In this section, the term ‘strategic sector’ means—

“(i) the energy, shipping, shipbuilding, and mining sectors of Iran;

“(ii) except as provided in subparagraph (B), the construction and engineering sectors of Iran; and

“(iii) any other sector the President designates as of strategic importance to Iran.

“(B) EXCEPTION FOR CONSTRUCTION AND ENGINEERING OF SCHOOLS, HOSPITALS, AND SIMILAR FACILITIES.—For purposes of this section, a person engaged in the construction or engineering of schools, hospitals, or similar facilities (as determined by the President) shall not be considered part of a strategic sector of Iran.

“(C) NOTIFICATION OF STRATEGIC SECTOR DESIGNATION.—The President shall submit to Congress a notification of the designation of a sector as a strategic sector of Iran for purposes of subparagraph (A)(iii) not later than 5 days after the date on which the President makes the designation.”.

(d) Additional sanctions with respect to strategic sectors.—Section 1244(d) of the Iran Freedom and Counter-Proliferation Act of 2012 (22 U.S.C. 8803(d)) is amended—

(1) in paragraph (1)(A), by striking “the date that is 180 days after the date of the enactment of this Act” and inserting “the date that is 90 days after the date of the enactment of the Nuclear Weapon Free Iran Act of 2013”;

(2) in paragraph (2), by striking “the date that is 180 days after the date of the enactment of this Act” and inserting “the date that is 90 days after the date of the enactment of the Nuclear Weapon Free Iran Act of 2013”; and

(3) in paragraph (3), by striking “the energy, shipping, or shipbuilding sectors” and inserting “a strategic sector”.

(e) Sale, supply, or transfer of certain materials to or from Iran.—Section 1245 of the Iran Freedom and Counter-Proliferation Act of 2012 (22 U.S.C. 8804) is amended—

(1) in subsection (a)(1)—

(A) in the matter preceding subparagraph (A), by striking “the date that is 180 days after the date of the enactment of this Act” and inserting “the date that is 90 days after the date of the enactment of the Nuclear Weapon Free Iran Act of 2013”; and

(B) in subparagraph (C)(i)(I), by striking “the energy, shipping, or shipbuilding sectors” and inserting “a strategic sector (as defined in section 1244(c)(4))”; and

(2) in subsection (c), by striking “the date that is 180 days after the date of the enactment of this Act” and inserting “the date that is 90 days after the date of the enactment of the Nuclear Weapon Free Iran Act of 2013”.

(f) Provision of insurance to sanctioned persons.—Section 1246(a)(1) of the Iran Freedom and Counter-Proliferation Act of 2012 (22 U.S.C. 8805(a)(1)) is amended—

(1) in the matter preceding subparagraph (A), by striking “the date that is 180 days after the date of the enactment of this Act” and inserting “the date that is 90 days after the date of the enactment of the Nuclear Weapon Free Iran Act of 2013”; and

(2) in subparagraph (B)(i), by striking “the energy, shipping, or shipbuilding sectors” and inserting “a strategic sector (as defined in section 1244(c)(4))”.

(g) Conforming amendments.—Section 1244 of the Iran Freedom and Counter-Proliferation Act of 2012 (22 U.S.C. 8803), as amended by subsections (a), (b), (c), and (d), is further amended—

(1) in the section heading, by striking “the energy, shipping, and shipbuilding” and inserting “certain ports, economic zones, and”;

(2) in subsection (b), in the subsection heading, by striking “ports and entities in the energy, shipping, and shipbuilding sectors of iran” and inserting “certain entities”;

(3) in subsection (c), in the subsection heading, by striking “entities in energy, shipping, and shipbuilding sectors” and inserting “certain entities”; and

(4) in subsection (d), in the subsection heading, by striking “the energy, shipping, and shipbuilding” and inserting “strategic”.

(a) Expansion of individuals identified.—Section 221(a) of the Iran Threat Reduction and Syria Human Rights Act of 2012 (22 U.S.C. 8727(a)) is amended—

(1) in paragraph (1)(C), by striking “; or” and inserting a semicolon;

(2) in paragraph (2), by striking the period at the end and inserting a semicolon; and

(3) by adding at the end the following:

“(3) an individual who engages in activities for or on behalf of the Government of Iran that enables Iran to evade sanctions imposed by the United States with respect to Iran;

“(4) an individual acting on behalf of the Government of Iran who is involved in corrupt activities of that Government or the diversion of humanitarian goods, including agricultural commodities, food, medicine, and medical devices, intended for the people of Iran; or

“(5) a senior official—

“(A) of an entity designated for the imposition of sanctions pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) in connection with—

“(i) Iran's proliferation of weapons of mass destruction or delivery systems for weapons of mass destruction; or

“(ii) Iran's support for acts of international terrorism; and

“(B) who was involved in the activity for which the entity was designated for the imposition of sanctions.”.

(b) Expansion of senior officials described.—Section 221(b) of the Iran Threat Reduction and Syria Human Rights Act of 2012 (22 U.S.C. 8727(b)) is amended—

(1) in paragraph (5), by striking “; or” and inserting a semicolon;

(2) in paragraph (6), by striking the period at the end and inserting “; or”; and

(3) by adding at the end the following:

“(7) a senior official of—

“(A) the Office of the Supreme Leader of Iran;

“(B) the Atomic Energy Organization of Iran;

“(C) the Islamic Consultative Assembly of Iran;

“(D) the Council of Ministers of Iran;

“(E) the Ministry of Defense and Armed Forces Logistics of Iran;

“(F) the Ministry of Justice of Iran;

“(G) the Ministry of Interior of Iran;

“(H) the prison system of Iran; or

“(I) the judicial system of Iran.”.

(c) Blocking of property.—Section 221 of the Iran Threat Reduction and Syria Human Rights Act of 2012 (22 U.S.C. 8727) is amended—

(1) by redesignating subsections (d) and (e) as subsections (e) and (f), respectively; and

(2) by inserting after subsection (c) the following:

“(d) Blocking of property.—

“(1) OFFICIALS AND OTHER ACTORS.—In the case of an individual described in paragraph (1), (3), (4), or (5) of subsection (a) who is on the list required by that subsection, the President shall block and prohibit all transactions in all property and interests in property of that individual if such property or interests in property are in the United States, come within the United States, or are or come within the possession or control of a United States person.

“(2) FAMILY MEMBERS.—In the case of an individual described in paragraph (2) of subsection (a) who is on the list required by that subsection, the President shall block and prohibit a transaction in property or an interest in property of that individual if the property or interest in property—

“(A) was transferred to that individual from an individual described in paragraph (1) of subsection (a) who is on the list required by that subsection; and

“(B) is in the United States, comes within the United States, or is or comes within the possession or control of a United States person.”.

(d) Conforming amendments.—Section 221 of the Iran Threat Reduction and Syria Human Rights Act of 2012 (22 U.S.C. 8727), as amended by subsections (a), (b), and (c), is further amended—

(1) by striking the section heading and inserting “Identification of, and imposition of sanctions with respect to, certain Iranian individuals”;

(2) in subsection (a), by striking “the date of the enactment of this Act” and inserting “the date of the enactment of the Nuclear Weapon Free Iran Act of 2013”; and

(3) in subsection (c), by striking “subsection (d)” and inserting “subsection (e)”.

(e) Clerical amendment.—The table of contents for the Iran Threat Reduction and Syria Human Rights Act of 2012 (22 U.S.C. 8701 et seq.) is amended by striking the item relating to section 221 and inserting the following:

(a) In general.—Title II of the Iran Threat Reduction and Syria Human Rights Act of 2012 (22 U.S.C. 8721 et seq.) is amended—

(1) by inserting after section 221 the following:

(2) by redesignating sections 222, 223, and 224 as sections 231, 232, and 233, respectively; and

(3) by inserting after section 221 the following:

“SEC. 222. Imposition of sanctions with respect to transactions in foreign currencies with certain sanctioned persons.

“(a) Imposition of sanctions.—The President—

“(1) shall prohibit the opening, and prohibit or impose strict conditions on the maintaining, in the United States of a correspondent account or a payable-through account by a foreign financial institution that knowingly conducts or facilitates a transaction described in subsection (b)(1); and

“(2) may impose sanctions pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) with respect to any other person that knowingly conducts or facilitates such a transaction.

“(b) Transactions described.—

“(1) IN GENERAL.—A transaction described in this subsection is a significant transaction conducted or facilitated by a person related to the currency of a country other than the country with primary jurisdiction over the person with, for, or on behalf of—

“(A) the Central Bank of Iran or an Iranian financial institution designated by the Secretary of the Treasury for the imposition of sanctions pursuant to the International Emergency Economic Powers Act; or

“(B) a person described in section 1244(c)(2) of the Iran Freedom and Counter-Proliferation Act of 2012 (22 U.S.C. 8803(c)(2)) (other than a person described in subparagraph (C)(iii) of that subsection).

“(2) PRIMARY JURISDICTION.—For purposes of paragraph (1), a country in which a person operates shall be deemed to have primary jurisdiction over the person only with respect to the operations of the person in that country.

“(c) Applicability.—Subsection (a) shall apply with respect to a transaction described in subsection (b)(1) conducted or facilitated—

“(1) on or after the date that is 90 days after the date of the enactment of the Nuclear Weapon Free Iran Act of 2013 pursuant to a contract entered into on or after such date of enactment; and

“(2) on or after the date that is 180 days after such date of enactment pursuant to a contract entered into before such date of enactment.

“(d) Inapplicability to humanitarian transactions.—The President may not impose sanctions under subsection (a) with respect to any person for conducting or facilitating a transaction for the sale of agricultural commodities, food, medicine, or medical devices to Iran or for the provision of humanitarian assistance to the people of Iran.

“(e) Waiver.—

“(1) IN GENERAL.—The President may waive the application of subsection (a) with respect to a person for a period of not more than 180 days, and may renew that waiver for additional periods of not more than 180 days, if the President—

“(A) determines that the waiver is important to the national interest of the United States; and

“(B) not less than 15 days after the waiver or the renewal of the waiver, as the case may be, takes effect, submits a report to the appropriate congressional committees on the waiver and the reason for the waiver.

“(2) FORM OF REPORT.—Each report submitted under paragraph (1)(B) shall be submitted in unclassified form but may contain a classified annex.

“(f) Definitions.—In this section:

“(1) FINANCIAL INSTITUTION; IRANIAN FINANCIAL INSTITUTION.—The terms ‘financial institution’ and ‘Iranian financial institution’ have the meanings given those terms in section 104A(d) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8513b(d)).

“(2) TRANSACTION.—The term ‘transaction’ includes a foreign exchange swap, a foreign exchange forward, and any other type of currency exchange or conversion or derivative instrument.”.

(b) Additional definitions.—Section 2 of the Iran Threat Reduction and Syria Human Rights Act (22 U.S.C. 8701) is amended—

(1) by redesignating paragraphs (2), (3), and (4) as paragraphs (5), (6), and (9), respectively;

(2) by striking paragraph (1) and inserting the following:

“(1) ACCOUNT; CORRESPONDENT ACCOUNT; PAYABLE-THROUGH ACCOUNT.—The terms ‘account’, ‘correspondent account’, and ‘payable-through account’ have the meanings given those terms in section 5318A of title 31, United States Code.

“(2) AGRICULTURAL COMMODITY.—The term ‘agricultural commodity’ has the meaning given that term in section 102 of the Agricultural Trade Act of 1978 (7 U.S.C. 5602).

“(3) 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).

“(4) DOMESTIC FINANCIAL INSTITUTION; FOREIGN FINANCIAL INSTITUTION.—The terms ‘domestic financial institution’ and ‘foreign financial institution’ have the meanings determined by the Secretary of the Treasury pursuant to section 104(i) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8513(i)).”; and

(3) by inserting after paragraph (6), as redesignated by paragraph (1), the following:

“(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).”.

(c) Clerical amendment.—The table of contents for the Iran Threat Reduction and Syria Human Rights Act of 2012 is amended by striking the items relating to sections 222, 223, and 224 and inserting the following:

It is the sense of Congress that, if additional sanctions are imposed pursuant to this Act and the Government of Iran continues to pursue an illicit nuclear weapons program, Congress should pursue additional stringent sanctions on Iran, such as sanctions on entities providing the Government of Iran access to assets of the Government of Iran held outside Iran, sanctions on Iran's energy sector, including its natural gas sector, and sanctions on entities providing certain underwriting, insurance, or reinsurance to the Government of Iran.

It is the sense of Congress that—

(1) the President has been engaged in intensive diplomatic efforts to ensure that sanctions against Iran are imposed and maintained multilaterally to sharply restrict the access of the Government of Iran to the global financial system;

(2) the European Union is to be commended for strengthening the multilateral sanctions regime against Iran by prohibiting all persons subject to the jurisdiction of the European Union from providing specialized financial messaging services to the Central Bank of Iran and other sanctioned Iranian financial institutions;

(3) in order to continue to sharply restrict access by Iran to the global financial system, the President and the European Union must continue to expeditiously address any judicial, administrative, or other decisions in their respective jurisdictions that might weaken the current multilateral sanctions regime, including decisions regarding the designation of financial institutions and global specialized financial messaging service providers for sanctions; and

(4) existing restrictions on the access of Iran to global specialized financial messaging services should be maintained.

(a) In general.—Section 302(b) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8542(b)) is amended—

(1) in paragraph (1)—

(A) in subparagraph (B)—

(i) in clause (ii), by striking “; or” and inserting a semicolon;

(ii) in clause (iii), by striking “; and” and inserting “; or”; and

(iii) by adding at the end the following:

“(iv) strategic sectors; and”; and

(B) in subparagraph (C)(ii), by striking “; or” and inserting a semicolon;

(2) in paragraph (2), by striking the period at the end and inserting “; or”; and

(3) by adding at the end the following:

“(3) that will be sold, transferred, or otherwise made available to a strategic sector of Iran.”.

(b) Strategic sector defined.—Section 301 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8541) is amended—

(1) by redesignating paragraph (14) as paragraph (15); and

(2) by inserting after paragraph (13) the following:

“(14) STRATEGIC SECTOR.—The term ‘strategic sector’ has the meaning given that term in section 1244(c)(4) of the Iran Freedom and Counter-Proliferation Act of 2012.”.

(c) Submission of report.—Section 302(a) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8542(a)) is amended by striking “180 days after the date of the enactment of this Act” and inserting “90 days after the date of the enactment of the Nuclear Weapon Free Iran Act of 2013”.

(a) In general.—Section 303(c) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8543(c)) is amended—

(1) by striking “Not later than” and inserting the following:

“(1) LICENSING REQUIREMENT.—Not later than”; and

(2) by adding at the end the following:

“(2) ADDITIONAL MEASURES.—The President may—

“(A) impose restrictions on United States foreign assistance or measures authorized under the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) with respect to a country designated as a Destination of Diversion Concern under subsection (a) if the President determines that those restrictions or measures would prevent the diversion of goods, services, and technologies described in section 302(b) to Iranian end-users or Iranian intermediaries; or

“(B) prohibit the issuance of a license under section 38 of the Arms Export Control Act (22 U.S.C. 2778) for the export to such a country of a defense article or defense service for which a notification to Congress would be required under section 36(b) of that Act (22 U.S.C. 2776(b)).

“(3) REPORT REQUIRED.—Not later than 90 days after the date of the enactment of the Nuclear Weapon Free Iran Act of 2013, and every 90 days thereafter, the President shall submit to the appropriate congressional committees a report—

“(A) identifying countries that have allowed the diversion through the country of goods, services, or technologies described in section 302(b) to Iranian end-users or Iranian intermediaries during the 180-day period preceding the submission of the report;

“(B) identifying the persons that engaged in such diversion during that period; and

“(C) describing the activities relating to diversion in which those countries and persons engaged.”.

(b) Conforming amendments.—Section 303 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8543) is amended—

(1) in subsection (c), in the subsection heading, by striking “Licensing requirement” and inserting “Licensing and other measures”; and

(2) in subsection (d)—

(A) in paragraph (1), by striking “subsection (c)” and inserting “subsection (c)(1)”;

(B) in paragraph (2), by striking “subsection (c)” and inserting “subsection (c)(1)”; and

(C) in paragraph (3), by striking “is it” and inserting “it is”.

It is the sense of Congress that—

(1) when the President submits the President’s budget for fiscal year 2015 to Congress under section 1105(a) of title 31, United States Code, the President should, in that budget, prioritize—

(A) resources for the Office of Foreign Assets Control for the Department of Treasury dedicated to the implementation and enforcement of sanctions with respect to Iran; and

(B) resources for the Department of State dedicated to the implementation and enforcement of sanctions with respect to Iran; and

(2) the appropriate committees of the Senate and the House of Representatives should prioritize the resources described in subparagraphs (A) and (B) of paragraph (1) during consideration of authorization and appropriations legislation in future fiscal years.

(a) Suspension of new sanctions.—

(1) IN GENERAL.—The President may suspend the application of sanctions imposed under this Act or amendments made by this Act for a 180-day period beginning on the earlier of the date of the enactment of this Act or the date on which the President submits a notification described in paragraph (5) to the appropriate congressional committees, if the President makes the certification described in paragraph (2) to the appropriate congressional committees every 30 days during that period.

(2) CERTIFICATION DESCRIBED.—A certification described in this paragraph is a certification that—

(A) Iran is complying with the provisions of the Joint Plan of Action and any agreement to implement the Joint Plan of Action;

(B) Iran has agreed to specific and verifiable measures to implement the Joint Plan of Action;

(C) Iran is transparently, verifiably, and fully implementing the Joint Plan of Action and any agreement to implement the Joint Plan of Action;

(D) Iran has not breached the terms of or any commitment made pursuant to the Joint Plan of Action or any agreement to implement the Joint Plan of Action;

(E) Iran is proactively and in good faith engaged in negotiations toward a final agreement or arrangement to terminate its illicit nuclear activities, related weaponization activities, and any other nuclear activity not required for a civilian nuclear program;

(F) the United States is working toward a final agreement or arrangement that will dismantle Iran’s illicit nuclear infrastructure to prevent Iran from achieving a nuclear weapons capability and permit daily verification, monitoring, and inspections of suspect facilities in Iran so that an effort by Iran to produce a nuclear weapon would be quickly detected;

(G) any suspension of or relief from sanctions provided to Iran pursuant to the Joint Plan of Action is temporary, reversible, and proportionate to the specific and verifiable measures taken by Iran with respect to terminating its illicit nuclear program and related weaponization activities;

(H) Iran has not directly, or through a proxy, supported, financed, planned, or otherwise carried out an act of terrorism against the United States or United States persons or property anywhere in the world;

(I) Iran has not conducted any tests for ballistic missiles with a range exceeding 500 kilometers; and

(J) the suspension of sanctions is vital to the national security interests of the United States.

(3) RENEWAL OF SUSPENSION.—Following the 180-day period described in paragraph (1), the President may renew a suspension of sanctions under that paragraph for 2 additional periods of not more than 30 days if, for each such renewal, the President submits to the appropriate congressional committees—

(A) a certification described in paragraph (2) that covers the 30 days preceding the certification; and

(B) a certification that a final agreement or arrangement with Iran to fully and verifiably terminate its illicit nuclear program and related weaponization activities is imminent and that Iran will, pursuant to that agreement or arrangement, dismantle its illicit nuclear infrastructure to preclude a nuclear breakout capability and other capabilities critical to the production of nuclear weapons.

(4) TERMINATION OF SUSPENSION OF EXISTING SANCTIONS.—

(A) IN GENERAL.—Any sanctions deferred, waived, or otherwise suspended by the President pursuant to the Joint Plan of Action or any agreement to implement the Joint Plan of Action, including sanctions suspended under this section and sanctions relating to precious metals, petrochemicals, Iran’s automotive sector, and sanctions pursuant to section 1245 of the National Defense Authorization Act for Fiscal Year 2012 (22 U.S.C. 8513a), shall be reinstated immediately if—

(i) (I) during the 180-day period described in paragraph (1), the President does not submit a certification every 30 days pursuant that paragraph; or

(II) the President does not renew the suspension of sanctions pursuant to paragraph (3);

(ii) Iran breaches its commitments under either the Joint Plan of Action or a final agreement or arrangement described in subsection (b)(1); or

(iii) no final arrangement or agreement is reached with Iran by the earlier of the date that is 240 days after—

(I) the date of the enactment of this Act; or

(II) the date on which the President submits a notification described in paragraph (5) to the appropriate congressional committees.

(B) WAIVER.—

(i) IN GENERAL.—The President may waive the reinstatement of any sanction under subparagraph (A)(iii) for periods of not more than 30 days during the period specified in clause (ii) if, for each such waiver, the President submits to the appropriate congressional committees—

(I) a notification of the waiver;

(II) a certification described in paragraph (2) that covers the 30 days preceding the certification;

(III) a certification that the waiver is vital to the national security interests of the United States with respect to the dismantlement of Iran’s illicit nuclear weapons program; and

(IV) a detailed report on the status of the negotiations with the Government of Iran on a final agreement or arrangement to terminate its illicit nuclear program and related weaponization activities, including an assessment of prospects for and the expected timeline to reach such an agreement or arrangement.

(ii) PERIOD SPECIFIED.—The period specified in this clause is the period that begins on the date of the enactment of this Act and ends on the earlier of the date that is one year after—

(I) such date of enactment; or

(II) the date on which the President submits a notification described in paragraph (5) to the appropriate congressional committees.

(5) NOTIFICATION RELATING TO AGREEMENT TO IMPLEMENT JOINT PLAN OF ACTION.—Not later than 3 days after Iran has agreed to specific and verifiable measures to implement the Joint Plan of Action, the President shall notify the appropriate congressional committees of that agreement.

(b) Suspension for a final agreement or arrangement.—

(1) IN GENERAL.—Unless a joint resolution of disapproval is enacted pursuant to subsection (c), the President may suspend the application of sanctions imposed under this Act or amendments made by this Act for a one-year period if the President certifies to the appropriate congressional committees that the United States and its allies have reached a final and verifiable agreement or arrangement with Iran that will—

(A) dismantle Iran’s illicit nuclear infrastructure, including enrichment and reprocessing capabilities and facilities, the heavy water reactor and production plant at Arak, and any nuclear weapon components and technology, so that Iran is precluded from a nuclear breakout capability and prevented from pursuing both uranium and plutonium pathways to a nuclear weapon;

(B) bring Iran into compliance with all United Nations Security Council resolutions related to Iran’s nuclear program, including Resolutions 1696 (2006), 1737 (2006), 1747 (2007), 1803 (2008), 1835 (2008), and 1929 (2010), with a view toward bringing to a satisfactory conclusion the Security Council’s consideration of matters relating to Iran’s nuclear program;

(C) resolve all issues of past and present concern with the International Atomic Energy Agency, including possible military dimensions of Iran’s nuclear program;

(D) permit continuous, around the clock, on-site inspection, verification, and monitoring of all suspect facilities in Iran, including installation and use of any compliance verification equipment requested by the International Atomic Energy Agency, so that any effort by Iran to produce a nuclear weapon would be quickly detected; and

(E) require Iran’s full implementation of and compliance with the Agreement between Iran and the International Atomic Energy Agency for the Application of Safeguards in Connection with the Treaty on the Non-Proliferation of Nuclear Weapons, done at Vienna June 19, 1973, including modified Code 3.1 of the Subsidiary Arrangements to that Agreement and ratification and implementation of the Protocol Additional to that Agreement, done at Vienna December 18, 2003; and

(F) requires Iran's implementation of measures in addition to the Protocol Additional that include verification by the International Atomic Energy Agency of Iran's centrifuge manufacturing facilities, including raw materials and components, and Iran's uranium mines and mills.

(2) RENEWAL OF SUSPENSION.—The President may renew the suspension of sanctions pursuant to paragraph (1) for additional one-year periods if, for each such renewal, the President—

(A) certifies to the appropriate congressional committees that Iran is complying with the terms of the final arrangement or agreement, including by—

(i) dismantling Iran’s illicit nuclear infrastructure, including enrichment and reprocessing capabilities and facilities, and the heavy water reactor and production plant at Arak, so that Iran is prevented from pursuing both uranium and plutonium pathways to a nuclear weapon;

(ii) permitting continuous, around the clock, on-site inspection, verification, and monitoring of all suspect facilities in Iran, including installation and use of any compliance verification equipment requested by the International Atomic Energy Agency, so that any effort by Iran to produce a nuclear weapon would be quickly detected;

(iii) resolving all issues of past and present concern with the International Atomic Energy Agency, including possible military dimensions of Iran’s nuclear program;

(iv) remaining in full compliance with all United Nations Security Council resolutions related to Iran’s nuclear program, including Resolutions 1696 (2006), 1737 (2006), 1747 (2007), 1803 (2008), 1835 (2008), and 1929 (2010);

(v) fully implementing and complying with the Agreement between Iran and the International Atomic Energy Agency for the Application of Safeguards in Connection with the Treaty on the Non-Proliferation of Nuclear Weapons, done at Vienna June 19, 1973, including modified Code 3.1 of the Subsidiary Arrangements to that Agreement and ratification and implementation of the Protocol Additional to that Agreement, done at Vienna December 18, 2003; and

(vi) implementing measures, in addition to the Protocol Additional, that include verification by the International Atomic Energy Agency of Iran’s centrifuge manufacturing facilities, including raw materials and components, and Iran’s uranium mines and mills; and

(B) submits to the appropriate congressional committees with the certification under subparagraph (A) a detailed report describing the actions taken by Iran to comply with the terms of the final arrangement or agreement.

(c) Joint resolution of disapproval.—

(1) IN GENERAL.—In this subsection, the term “joint resolution of disapproval” means only a joint resolution of the 2 Houses of Congress, the sole matter after the resolving clause of which is as follows: “That Congress disapproves of the suspension of sanctions imposed with respect to Iran under section 301(b)(1) of the Nuclear Weapon Free Iran Act of 2013 pursuant to the certification of the President submitted to Congress under that section on ______ ”, with the blank space being filled with the appropriate date.

(2) PROCEDURES FOR CONSIDERING RESOLUTIONS.—

(A) INTRODUCTION.—A joint resolution of disapproval—

(i) may be introduced in the House of Representatives or the Senate during the 15-day period beginning on the date on which the President submits a certification under subsection (b)(1) to the appropriate congressional committees;

(ii) in the House of Representatives, may be introduced by the Speaker or the minority leader or a Member of the House designated by the Speaker or minority leader;

(iii) in the Senate, may be introduced by the majority leader or minority leader of the Senate or a Member of the Senate designated by the majority leader or minority leader; and

(iv) may not be amended.

(B) REFERRAL TO COMMITTEES.—A joint resolution of disapproval introduced in the Senate shall be referred to the Committee on Banking, Housing, and Urban Affairs and a joint resolution of disapproval in the House of Representatives shall be referred to the Committee on Foreign Affairs.

(C) COMMITTEE DISCHARGE AND FLOOR CONSIDERATION.—The provisions of subsections (c) through (f) of section 152 of the Trade Act of 1974 (19 U.S.C. 2192) (relating to committee discharge and floor consideration of certain resolutions in the House of Representatives and the Senate) apply to a joint resolution of disapproval under this subsection to the same extent that such subsections apply to joint resolutions under such section 152, except that—

(i) subsection (c)(1) shall be applied and administered by substituting “10 days” for “30 days”; and

(ii) subsection (f)(1)(A)(i) shall be applied and administered by substituting “Committee on Banking, Housing, and Urban Affairs” for “Committee on Finance”.

(3) RULES OF THE HOUSE OF REPRESENTATIVES AND SENATE.—This subsection is enacted by Congress—

(A) as an exercise of the rulemaking power of the Senate and the House of Representatives, respectively, and as such is deemed a part of the rules of each House, respectively, but applicable only with respect to the procedure to be followed in that House in the case of a joint resolution, and it supersedes other rules only to the extent that it is inconsistent with such rules; and

(B) with full recognition of the constitutional right of either House to change the rules (so far as relating to the procedure of that House) at any time, in the same manner and to the same extent as in the case of any other rule of that House.

(d) Definitions.—In this section:

(1) 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).

(2) JOINT PLAN OF ACTION.—The term “Joint Plan of Action” means the Joint Plan of Action, signed at Geneva November 24, 2013, by Iran and by France, Germany, the Russian Federation, the People's Republic of China, the United Kingdom, and the United States.

(3) UNITED STATES PERSON.—The term “United States person” has the meaning given that term in section 101 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8511).

The President may provide for an exception from the imposition of sanctions under the provisions of or amendments made by this Act for reconstruction assistance or economic development for Afghanistan—

(1) to the extent that the President determines that such an exception is in the national interest of the United States; and

(2) if, not later than 15 days before issuing the exception, the President submits a notification of and justification for the exception to the appropriate congressional committees (as defined in section 14 of the Iran Sanctions Act of 1996 (Public Law 104–172; 50 U.S.C. 1701 note)).

No provision of or amendment made by this Act authorizes or requires the President to impose sanctions relating to the importation of goods.

Nothing in this Act or the amendments made by this Act shall apply to the authorized intelligence activities of the United States.

Nothing in this Act or any amendment made by this Act shall be construed to apply with respect to any activity relating to a project described in subsection (a) of section 603 of the Iran Threat Reduction and Syria Human Rights Act of 2012 (22 U.S.C. 8783) to which the exception under that section applies at the time of the activity.

Nothing in this Act or the amendments made by this Act shall be construed as a declaration of war or an authorization of the use of force against Iran.

The Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1990 (Public Law 101–167) is amended—

(1) in section 599D (8 U.S.C. 1157 note)—

(A) in subsection (b), by striking paragraph (3); and

(B) in subsection (e)—

(i) in paragraph (1), by striking “2013.” and inserting “2014.”;

(ii) in paragraph (2), by striking “2013.” and inserting “2014.”; and

(iii) in paragraph (3), by striking “2013.” and inserting “2014.”; and

(2) in section 599E(b)(2) (8 U.S.C. 1255 note), by striking “2013,” and inserting “2014,”.