H. Rept. 113-177 - 113th Congress (2013-2014)
July 30, 2013, As Reported by the Foreign Affairs Committee

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House Report 113-177 - NUCLEAR IRAN PREVENTION ACT OF 2013




[House Report 113-177]
[From the U.S. Government Printing Office]


113th Congress  }                                      {  Rept. 113-177
                        HOUSE OF REPRESENTATIVES
 1st Session    }                                      {         Part 1

======================================================================



 
                  NUCLEAR IRAN PREVENTION ACT OF 2013

                                _______
                                

 July 30, 2013.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Mr. Royce, from the Committee on Foreign Affairs, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 850]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Foreign Affairs, to whom was referred the 
bill (H.R. 850) to impose additional human rights and economic 
and financial sanctions with respect to Iran, and for other 
purposes, having considered the same, reports favorably thereon 
with an amendment and recommends that the bill as amended do 
pass.

                           TABLE OF CONTENTS

                                                                   Page
The Amendment....................................................     1
Summary and Purpose..............................................    21
Background and Need for Legislation..............................    22
Hearings.........................................................    27
Committee Consideration..........................................    28
Committee Oversight Findings.....................................    28
New Budget Authority, Tax Expenditures, and Federal Mandates.....    28
Congressional Budget Office Cost Estimate........................    28
Directed Rule Making.............................................    30
Non-Duplication of Federal Programs..............................    30
Performance Goals and Objectives.................................    30
Congressional Accountability Act.................................    30
New Advisory Committees..........................................    30
Earmark Identification...........................................    31
Letters of Jurisdiction..........................................    31
Section-by-Section Analysis......................................    32
Changes in Existing Law Made by the Bill, as Reported............    38

                             The Amendment

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Nuclear Iran 
Prevention Act of 2013''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. Findings and statement of policy.

             TITLE I--HUMAN RIGHTS AND TERRORISM SANCTIONS

Sec. 101. Mandatory sanctions with respect to financial institutions 
that engage in certain transactions on behalf of persons involved in 
human rights abuses or that export sensitive technology to Iran.
Sec. 102. Prevention of diversion of certain goods, services and 
technologies to Iran.
Sec. 103. Designation of Iran's Revolutionary Guard Corps as foreign 
terrorist organization.
Sec. 104. Imposition of sanctions on certain persons responsible for or 
complicit in human rights abuses, engaging in censorship, or engaging 
in the diversion of goods intended for the people of Iran.
Sec. 105. Sense of Congress on elections in Iran.
Sec. 106. Sense of Congress on designation of a Special Coordinator for 
advancing human rights and political participation for women in Iran.

               TITLE II--ECONOMIC AND FINANCIAL SANCTIONS

          Subtitle A--Amendments to Iran Sanctions Act of 1996

Sec. 201. Imposition of sanctions relating to transportation of crude 
oil from Iran and certain imports and exports to and from Iran.
Sec. 202. Transfer to Iran of goods, services, or technology that would 
materially contribute to Iran's ability to mine or mill uranium.
Sec. 203. Repeal of waiver of sanctions relating to development of 
weapons of mass destruction or other military capabilities.

Subtitle B--Amendments to Comprehensive Iran Sanctions, Accountability, 
 and Divestment Act of 2010 and Iran Threat Reduction and Syria Human 
                           Rights Act of 2012

Sec. 211. Modifications to prohibition on procurement contracts with 
persons that export sensitive technology to Iran.
Sec. 212. Authority of State and local governments to avoid exposure to 
sanctioned persons and sectors.
Sec. 213. Sense of Congress regarding the European Central Bank.
Sec. 214. Imposition of sanctions with respect to certain transactions 
in foreign currencies.
Sec. 215. Sanctions with respect to certain transactions with Iran.

                       Subtitle C--Other Matters

Sec. 221. Imposition of sanctions with respect to the Central Bank of 
Iran and other Iranian financial institutions.
Sec. 222. Imposition of sanctions with respect to ports, special 
economic zones, free economic zones, and strategic sectors of Iran.
Sec. 223. Report on determinations not to impose sanctions on persons 
who allegedly sell, supply, or transfer precious metals to or from 
Iran.
Sec. 224. Imposition of sanctions with respect to foreign financial 
institutions that facilitate financial transactions on behalf of 
persons owned or controlled by specially designated nationals.
Sec. 225. Repeal of exemptions under sanctions provisions of National 
Defense Authorization Act for Fiscal Year 2013.
Sec. 226. Termination of government contracts with persons who sell 
goods, services, or technology to, or conduct any other transaction 
with, Iran.
Sec. 227. Conditions for entry and operation of vessels.

 TITLE III--ADDITIONAL AUTHORITIES TO PREVENT CENSORSHIP ACTIVITIES IN 
                                  IRAN

Sec. 301. Report on implementation of sanctions against the Islamic 
Republic of Iran Broadcasting.
Sec. 302. List of persons who are high-risk re-exporters of sensitive 
technologies.
Sec. 303. Sense of Congress on provision of intercept technologies to 
Iran.
Sec. 304. Sense of Congress on availability of consumer communication 
technologies in Iran.
Sec. 305. Expedited consideration of requests for authorization of 
transfer of goods and services to Iran to facilitate the ability of 
Iranian persons to freely communicate.

                  TITLE IV--REPORTS AND OTHER MATTERS

Sec. 401. National Strategy on Iran.
Sec. 402. Report on Iranian nuclear and economic capabilities.
Sec. 403. Report on plausibility of expanding sanctions on Iranian oil.
Sec. 404. GAO report on Iranian strategy to evade current sanctions and 
other matters.
Sec. 405. Authority to consolidate reports required under Iran 
sanctions laws.
Sec. 406. Amendments to definitions under Iran Sanctions Act of 1996 
and Iran Threat Reduction and Syria Human Rights Act of 2012.
Sec. 407. Implementation; penalties.
Sec. 408. Severability.

SEC. 2. FINDINGS AND STATEMENT OF POLICY.

  (a) Findings.--Congress finds the following:
          (1) Iran's acquisition of a nuclear weapons capability 
        would--
                  (A) embolden its already aggressive foreign policy, 
                including its arming of terrorist organizations and 
                other groups, its efforts to destabilize countries in 
                the Middle East, and its efforts to target the United 
                States, United States allies, and United States 
                interests globally;
                  (B) increase the risk that Iran would share its 
                nuclear technology and expertise with extremist groups 
                and rogue nations;
                  (C) destabilize global energy markets, posing a 
                direct and devastating threat to the American and 
                global economy; and
                  (D) likely lead other governments in the region to 
                pursue their own nuclear weapons programs, increasing 
                the prospect of nuclear proliferation throughout the 
                region and effectively ending the viability of the 
                global nonproliferation regime, including the Treaty on 
                the Non-Proliferation of Nuclear Weapons, done at 
                Washington, London, and Moscow July 1, 1968, and 
                entered into force on March 5, 1970.
          (2) A nuclear arms-capable Iran possessing intercontinental 
        ballistic missiles, a development most experts expect could 
        occur within a decade, would pose a direct nuclear threat to 
        the United States.
  (b) Statement of Policy.--It shall be the policy of the United States 
to prevent Iran from acquiring a nuclear weapons capability.

             TITLE I--HUMAN RIGHTS AND TERRORISM SANCTIONS

SEC. 101. MANDATORY SANCTIONS WITH RESPECT TO FINANCIAL INSTITUTIONS 
                    THAT ENGAGE IN CERTAIN TRANSACTIONS ON BEHALF OF 
                    PERSONS INVOLVED IN HUMAN RIGHTS ABUSES OR THAT 
                    EXPORT SENSITIVE TECHNOLOGY TO IRAN.

  (a) In General.--Section 104(c)(2) of the Comprehensive Iran 
Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 
8513(c)(2)) is amended--
          (1) in subparagraph (D), by striking ``or'' at the end;
          (2) in subparagraph (E), by striking the period at the end 
        and inserting ``; or''; and
          (3) by adding at the end the following new subparagraph:
                  ``(F) facilitates a significant transaction or 
                transactions or provides significant financial services 
                for--
                          ``(i) a person that is subject to sanctions 
                        under section 105(c), 105A(c), 105B(c), or 
                        105C(a); or
                          ``(ii) a person that exports sensitive 
                        technology to Iran and is subject to the 
                        prohibition on procurement contracts as 
                        described in section 106.''.
  (b) Effective Date.--The amendments made by subsection (a) take 
effect on the date of the enactment of this Act and apply with respect 
to any activity described in subparagraph (F) of section 104(c)(2) of 
the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 
2010 (as added by subsection (a)(3) of this section) initiated on or 
after the date that is 90 days after such date of enactment.
  (c) Regulations.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of the Treasury shall prescribe 
regulations to carry out the amendments made by subsection (a).

SEC. 102. PREVENTION OF DIVERSION OF CERTAIN GOODS, SERVICES AND 
                    TECHNOLOGIES TO IRAN.

  (a) Definitions.--Section 301(1) of the Comprehensive Iran Sanctions, 
Accountability, and Divestment Act of 2010 (22 U.S.C. 8541(1)) is 
amended by striking ``knows or has reason to know'' and inserting 
``knows, has reason to know, or should have known''.
  (b) Identification of Countries of Concern With Respect to the 
Diversion of Certain Goods, Services, and Technologies to or Through 
Iran.--Section 302(b) of the Comprehensive Iran Sanctions, 
Accountability, and Divestment Act of 2010 (22 U.S.C. 8542(b)) is 
amended--
          (1) in paragraph (1), by striking ``or'' at the end;
          (2) in paragraph (2), by striking the period at the end and 
        inserting ``; or''; and
          (3) by adding at the end the following new paragraph:
          ``(3) that are--
                  ``(A) items described in the Nuclear Suppliers Group 
                Guidelines for the Export of Nuclear Material, 
                Equipment and Technology (published by the 
                International Atomic Energy Agency as Information 
                Circular INFCIRC/254/Rev. 3/Part 1, and subsequent 
                revisions) and Guidelines for Transfers of Nuclear-
                Related Dual-Use Equipment, Material, and Related 
                Technology (published by the International Atomic 
                Energy Agency as Information Circular INFCIRC/254/Rev. 
                3/Part 2, and subsequent revisions);
                  ``(B) items on the Missile Technology Control Regime 
                Equipment and Technology Annex of June 11, 1996, and 
                subsequent revisions;
                  ``(C) items and substances relating to biological and 
                chemical weapons the export of which is controlled by 
                the Australia Group;
                  ``(D) items on the Schedule One or Schedule Two list 
                of toxic chemicals and precursors the export of which 
                is controlled pursuant to the Convention on the 
                Prohibition of the Development, Production, Stockpiling 
                and Use of Chemical Weapons and on Their Destruction; 
                or
                  ``(E) items on the Wassenaar Arrangement list of Dual 
                Use Goods and Technologies and Munitions list of July 
                12, 1996, and subsequent revisions.''.
  (c) Destinations of Diversion Concern.--Section 303(c) of the 
Comprehensive Iran Sanctions, Accountability, and Divestment Act of 
2010 (22 U.S.C. 8543(c)) is amended--
          (1) by striking ``Not later than'' and inserting the 
        following:
          ``(1) In general.--Not later than''; and
          (2) by adding at the end the following new paragraph:
          ``(2) Additional measures.--The President may impose 
        restrictions on United States foreign assistance or measures 
        authorized under the International Emergency Economic Powers 
        Act with respect to a country designated as a country of 
        diversion concern if the President determines such restrictions 
        or measures would prevent the transfer of United States-origin 
        goods, services, and technology to Iran.''.
  (d) Effective Date.--The amendments made by this section take effect 
on the date of the enactment of this Act and apply with respect to 
countries identified in any update to the report that is required under 
section 302(c) of the Comprehensive Iran Sanctions, Accountability, and 
Divestment Act of 2010 and submitted to Congress on or after such date 
of enactment.

SEC. 103. DESIGNATION OF IRAN'S REVOLUTIONARY GUARD CORPS AS FOREIGN 
                    TERRORIST ORGANIZATION.

  (a) In General.--Subtitle A of title III of the Iran Threat Reduction 
and Syria Human Rights Act of 2012 (22 U.S.C. 8741 et seq.) is 
amended--
          (1) by redesignating section 304 as section 305; and
          (2) by inserting after section 303 the following new section:

``SEC. 304. DESIGNATION OF IRAN'S REVOLUTIONARY GUARD CORPS AS FOREIGN 
                    TERRORIST ORGANIZATION.

  ``(a) In General.--Not later than 30 days after the date of the 
enactment of this section, the Secretary of State shall determine if 
Iran's Revolutionary Guard Corps meets the criteria for designation as 
a foreign terrorist organization as set forth in section 219 of the 
Immigration and Nationality Act (8 U.S.C. 1189).
  ``(b) Affirmative Determination.--If the Secretary of State 
determines under subsection (a) that Iran's Revolutionary Guard Corps 
meets the criteria set forth under such section 219, the Secretary 
shall designate Iran's Revolutionary Guard Corps as a foreign terrorist 
organization under such section 219.
  ``(c) Negative Determination.--
          ``(1) In general.--If the Secretary of State determines under 
        subsection (a) that Iran's Revolutionary Guard Corps does not 
        meet the criteria set forth under such section 219, the 
        Secretary shall submit to the committees of Congress specified 
        in subsection (e) a report that contains a detailed 
        justification as to which criteria have not been met.
          ``(2) Form.--The report required under paragraph (1) shall be 
        submitted in unclassified form, but may contain a classified 
        annex, if necessary.
  ``(d) Applicability of Sanctions to Quds Force.--The sanctions 
applied to any entity designated as a foreign terrorist organization as 
set forth in such section 219 shall be applied to the Iran's 
Revolutionary Guard Corps Quds Force.
  ``(e) Committees of Congress Specified.--The committees of Congress 
specified in this subsection are the following:
          ``(1) The Committee on Foreign Affairs, the Committee on the 
        Judiciary, and the Committee on Homeland Security of the House 
        of Representatives.
          ``(2) The Committee on Foreign Relations, the Committee on 
        the Judiciary, and the Committee on Homeland Security and 
        Governmental Affairs of the Senate.''.
  (b) Clerical Amendment.--The table of contents for the Iran Threat 
Reduction and Syria Human Rights Act of 2012 is amended by striking the 
item relating to section 304 and inserting the following:

``Sec. 304. Designation of Iran's Revolutionary Guard Corps as foreign 
terrorist organization.
``Sec. 305. Rule of construction.''.

SEC. 104. IMPOSITION OF SANCTIONS ON CERTAIN PERSONS RESPONSIBLE FOR OR 
                    COMPLICIT IN HUMAN RIGHTS ABUSES, ENGAGING IN 
                    CENSORSHIP, OR ENGAGING IN THE DIVERSION OF GOODS 
                    INTENDED FOR THE PEOPLE OF IRAN.

  (a) Finding and Sense of Congress.--Section 401(a) of the Iran Threat 
Reduction and Syria Human Rights Act of 2012 (Public Law 112-158; 126 
Stat. 1251) is amended to read as follows:
  ``(a) Finding and Sense of Congress.--
          ``(1) Finding.--Congress finds that Iranian persons holding 
        the following positions in the Government of Iran are 
        ultimately responsible for and have and continue to knowingly 
        order, control, direct and implement gross violations of the 
        human rights of the Iranian people, the human rights of persons 
        in other countries, censorship, and the diversion of food, 
        medicine, medical devices, agricultural commodities and other 
        goods intended for the Iranian people:
                  ``(A) The Supreme Leader of Iran.
                  ``(B) The President of Iran.
                  ``(C) Members of the Council of Guardians.
                  ``(D) Members of the Expediency Council.
                  ``(E) The Minister of Intelligence and Security.
                  ``(F) The Commander of the Iran's Revolutionary Guard 
                Corps.
                  ``(G) The Commander of the Basij-e-Mostaz'afin.
                  ``(H) The Commander of Ansar-e-Hezbollah.
                  ``(I) The Commander of the Quds Force.
                  ``(J) The Commander in Chief of the Police Force.
                  ``(K) Senior officials or key employees of an 
                organization described in any of subparagraphs (C) 
                through (J) or in the Atomic Energy Organization of 
                Iran, the Islamic Consultative Assembly of Iran, the 
                Council of Ministers of Iran, the Assembly of Experts 
                of Iran, the Ministry of Defense and Armed Forces 
                Logistics of Iran, the Ministry of Justice of Iran, the 
                Ministry of Interior of Iran, the prison system of 
                Iran, or the judicial system of Iran.
          ``(2) Sense of congress.--It is the sense of Congress that--
                  ``(A) the President should include any Iranian person 
                holding a position in the Government of Iran described 
                in paragraph (1) on one or more of the lists of persons 
                subject to sanctions pursuant to section 105(b), 
                105A(b), 105B(b), or 105C(b) of the Comprehensive Iran 
                Sanctions, Accountability, and Divestment Act of 2010 
                (22 U.S.C. 8514(b), 8514a(b), 8514b(b), or 8514c(b)); 
                and
                  ``(B) the President should impose sanctions on such 
                Iranian person pursuant to section 105, 105A, 105B, or 
                105C of such Act (as the case may be).''.
  (b) Additional Finding and Sense of Congress.--Section 401 of the 
Iran Threat Reduction and Syria Human Rights Act of 2012 (Public Law 
112-158; 126 Stat. 1251) is amended--
          (1) by redesignating subsection (b) as subsection (c); and
          (2) by inserting after subsection (a) the following:
  ``(b) Additional Finding and Sense of Congress.--
          ``(1) Finding.--Congress finds that other senior officials of 
        the Government of Iran, its agencies and instrumentalities, 
        also have and continue to knowingly order, control, direct, and 
        implement gross violations of the human rights of the Iranian 
        people and the human rights of persons in other countries.
          ``(2) Sense of congress.--It is the sense of Congress that--
                  ``(A) the President should investigate violations of 
                human rights described in paragraph (1) to identify 
                other senior officials of the Government of Iran that 
                also have or continue to knowingly order, control, 
                direct, and implement gross violations of human rights 
                of the Iranian people and the human rights of persons 
                in other countries;
                  ``(B) the President should include any such official 
                on one or more of the lists of persons subject to 
                sanctions pursuant to section 105(b), 105A(b), 105B(b), 
                or 105C(b) of the Comprehensive Iran Sanctions, 
                Accountability, and Divestment Act of 2010 (22 U.S.C. 
                8514(b), 8514a(b), 8514b(b), or 8514c(b)); and
                  ``(C) the President should impose sanctions on any 
                such official pursuant to section 105, 105A, 105B, or 
                105C of such Act (as the case may be).''.
  (c) Report.--Section 401(c)(1) of the Iran Threat Reduction and Syria 
Human Rights Act of 2012 (Public Law 112-158; 126 Stat. 1251), as 
redesignated by subsection (b) of this section, is amended--
          (1) by striking ``Not later than'' and inserting the 
        following:
                  ``(A) In general.--Not later than'';
          (2) by striking ``this Act'' and inserting ``the Nuclear Iran 
        Prevention Act of 2013, and annually thereafter for 3 years'';
          (3) by striking ``otherwise directing the commission of'' and 
        inserting ``otherwise directing--
                          ``(i) the commission of'';
          (4) by striking ``Iran.'' and inserting ``Iran;
                          ``(ii) censorship or related activities with 
                        respect to Iran; or
                          ``(iii) the diversion of goods, food, 
                        medicine, medical devices, and agricultural 
                        commodities, intended for the people of 
                        Iran.'';
          (5) by striking ``For any such person'' and inserting the 
        following:
                  ``(B) Requirement relating to persons not included.--
                For any such person''; and
          (6) by adding at the end the following new subparagraph:
                  ``(C) Requirement relating to financial net worth.--
                For each such person described in subparagraph (A) and 
                each such person described in subparagraph (B), the 
                Secretary of State shall include in the report a 
                description of the estimated net worth of the 
                person.''.
  (d) Conforming Amendment.--The heading for section 401 of the Iran 
Threat Reduction and Syria Human Rights Act of 2012 (Public Law 112-
158; 126 Stat. 1251) is amended by striking ``committed against'' and 
all that follows and inserting ``, engaging in censorship, or engaging 
in the diversion of goods intended for the people of iran.''.
  (e) Clerical Amendment.--The table of contents for the Iran Threat 
Reduction and Syria Human Rights Act of 2012 is amended by striking the 
item relating to section 401 and inserting the following:

``Sec. 401. Imposition of sanctions on certain persons responsible for 
or complicit in human rights abuses, engaging in censorship, or 
engaging in the diversion of goods intended for the people of Iran.''.

SEC. 105. SENSE OF CONGRESS ON ELECTIONS IN IRAN.

  (a) Findings.--Congress makes the following findings:
          (1) The Iranian people are systematically denied free, fair, 
        and credible elections by the Government of the Islamic 
        Republic of Iran.
          (2) The unelected and unaccountable Guardian Council 
        disqualifies hundreds of qualified candidates, including women 
        and most religious minorities, while the regime intimidates 
        others into staying out of elections completely.
          (3) Voting inconsistencies, including an absence of 
        international observers, and fraud are commonplace.
          (4) The 2009 presidential elections proved that the regime 
        will engage in large scale vote-rigging to ensure a specific 
        result.
          (5) The Iranian regime combines electoral manipulation with 
        the ruthless suppression of dissent. Following the 2009 
        elections, peaceful demonstrators were met with violence by the 
        regime's security apparatus, including arbitrary detentions, 
        beatings, kidnappings, rapes, and murders.
          (6) The electoral manipulation and human rights violations 
        are in violation of the Government of Iran's agreed to 
        obligations under the United Nations International Covenant on 
        Civil and Political Rights.
  (b) Sense of Congress.--It is the sense of the Congress that--
          (1) the Iranian people are deprived by their government of 
        free, fair, and credible elections;
          (2) the United States should support freedom, human rights, 
        civil liberties, and the rule of law in Iran, and elections 
        that are free and fair, meet international standards, and allow 
        independent international and domestic electoral observers 
        unrestricted access to polling and counting stations; and
          (3) the United States should support the people of Iran in 
        their peaceful calls for a representative and responsive 
        democratic government that respects human rights, civil 
        liberties, and the rule of law.

SEC. 106. SENSE OF CONGRESS ON DESIGNATION OF A SPECIAL COORDINATOR FOR 
                    ADVANCING HUMAN RIGHTS AND POLITICAL PARTICIPATION 
                    FOR WOMEN IN IRAN.

  It is the sense of Congress that the Secretary of State should 
designate a Special Coordinator position in the Bureau of Near Eastern 
Affairs whose primary function is to facilitate cooperation across 
departments for the purpose of advancing human rights and political 
participation for women in Iran, as well as to prepare evidence and 
information to be used in identifying Iranian officials for designation 
as human rights violators for their involvement in violating the human 
rights of women in Iran.

               TITLE II--ECONOMIC AND FINANCIAL SANCTIONS

          Subtitle A--Amendments to Iran Sanctions Act of 1996

SEC. 201. IMPOSITION OF SANCTIONS RELATING TO TRANSPORTATION OF CRUDE 
                    OIL FROM IRAN AND CERTAIN IMPORTS AND EXPORTS TO 
                    AND FROM IRAN.

  (a) In General.--Section 5(a)(7)(A) of the Iran Sanctions Act of 1996 
(Public Law 104-172; 50 U.S.C. 1701 note) is amended--
          (1) in clause (i)--
                  (A) by striking ``a vessel that, on or after'' and 
                inserting the following: ``a vessel that--
                                  ``(I) on or after''; and
                  (B) by striking ``and'' at the end and inserting 
                ``or''; and
                  (C) by adding at the end the following:
                                  ``(II)(aa) knowingly transports to or 
                                from Iran any good if the importation 
                                to Iran or exportation from Iran, as 
                                the case may be, of that good is 
                                subject to sanctions under this Act; or
                                  ``(bb) knowingly engages in a vessel-
                                to-vessel transfer of crude oil 
                                transported from Iran;'';
          (2) in clause (ii), by striking the period at the end and 
        inserting ``; or''; and
          (3) by adding at the end the following new clause:
                          ``(iii) the person is a person who knowingly 
                        sells, leases, or otherwise facilitates the 
                        transfer of ownership of a vessel to the 
                        Government of Iran, or any agencies or 
                        affiliates thereof, for the purpose of 
                        transportation of crude oil from Iran to 
                        another country.''.
  (b) Conforming Amendment.--Section 5(a)(7) of the Iran Sanctions Act 
of 1996 (Public Law 104-172; 50 U.S.C. 1701 note) is amended in the 
paragraph heading by striking ``from iran'' and inserting ``from iran 
and certain imports and exports to and from iran''.
  (c) Effective Date.--The amendments made by subsection (a) apply with 
respect to actions described in subclause (II) of section 5(a)(7)(A)(i) 
of the Iran Sanctions Act of 1996 (as added by such subsection) and 
actions described in clause (iii) of section 5(a)(7)(A) of the Iran 
Sanctions Act of 1996 (as added by such subsection), as the case may 
be, that occur on or after the date that is 90 days after the date of 
the enactment of this Act.

SEC. 202. TRANSFER TO IRAN OF GOODS, SERVICES, OR TECHNOLOGY THAT WOULD 
                    MATERIALLY CONTRIBUTE TO IRAN'S ABILITY TO MINE OR 
                    MILL URANIUM.

  (a) In General.--Section 5(b)(2) of the Iran Sanctions Act of 1996 
(Public Law 104-172; 50 U.S.C. 1701 note) is amended by adding at the 
end the following new subparagraph:
                  ``(C) Transfer to iran of goods, services, or 
                technology that can be used for mining or milling of 
                uranium.--Except as provided in subsection (f), the 
                President shall impose 5 or more of the sanctions 
                described in section 6(a) with respect to a person if 
                the President determines that the person knowingly 
                transferred, on or after the date of the enactment of 
                the Nuclear Iran Prevention Act of 2013, to Iran goods, 
                services, or technology that would materially 
                contribute to Iran's ability to mine or mill 
                uranium.''.
  (b) Conforming Amendment.--Section 5(b) of such Act is amended in the 
heading for paragraph (2) by adding at the end before the period the 
following: ``and other related activities''.

SEC. 203. REPEAL OF WAIVER OF SANCTIONS RELATING TO DEVELOPMENT OF 
                    WEAPONS OF MASS DESTRUCTION OR OTHER MILITARY 
                    CAPABILITIES.

  Section 9(c)(1) of the Iran Sanctions Act of 1996 (Public Law 104-
172; 50 U.S.C. 1701 note) is amended--
          (1) by striking subparagraph (B);
          (2) by redesignating subparagraph (C) as subparagraph (B); 
        and
          (3) in subparagraph (B) (as redesignated by paragraph (2) of 
        this section)--
                  (A) by striking ``or (B)'' each place it appears; and
                  (B) by striking ``, as applicable''.

Subtitle B--Amendments to Comprehensive Iran Sanctions, Accountability, 
 and Divestment Act of 2010 and Iran Threat Reduction and Syria Human 
                           Rights Act of 2012

SEC. 211. MODIFICATIONS TO PROHIBITION ON PROCUREMENT CONTRACTS WITH 
                    PERSONS THAT EXPORT SENSITIVE TECHNOLOGY TO IRAN.

  (a) Application to Owners and Subsidiaries.--Subsection (a) of 
section 106 of the Comprehensive Iran Sanctions, Accountability, and 
Divestment Act of 2010 (Public Law 111-195; 22 U.S.C. 8515) is 
amended--
          (1) by striking ``goods or services with a person'' and 
        inserting the following: ``goods or services--
          ``(1) with a person'';
          (2) in paragraph (1), as added by paragraph (1) of this 
        subsection, by striking the period at the end and inserting and 
        inserting ``; or''; and
          (3) by adding at the end the following new paragraph:
          ``(2) with respect to a person acting on behalf of or at the 
        direction of, or owned or controlled by, a person described in 
        paragraph (1) or a person who owns or controls a person 
        described in paragraph (1).''.
  (b) Sensitive Technology Defined.--Subsection (c)(1) of such section 
is amended by striking ``is to be used specifically'' and inserting 
``has been designed or specifically modified''.
  (c) Presidential Determination and Imposition of Additional 
Sanctions.--Such section, as so amended, is further amended by adding 
at the end the following new subsection:
  ``(e) Presidential Determination and Imposition of Additional 
Sanctions.--The President shall impose 5 or more of the sanctions 
described in section 6(a) of the Iran Sanctions Act of 1996 (Public Law 
104-172; 50 U.S.C. 1701 note) with respect to--
          ``(1) a person if the President determines that the person 
        knowingly exports sensitive technology to Iran; or
          ``(2) a person acting on behalf of or at the direction of, or 
        owned or controlled by, a person described in paragraph (1) or 
        a person who owns or controls a person described in paragraph 
        (1).''.
  (d) Conforming Amendment.--The heading of such section is amended by 
inserting ``and imposition of sanctions against'' after ``with''.
  (e) Clerical Amendment.--The table of contents for the Comprehensive 
Iran Sanctions, Accountability, and Divestment Act of 2010 is amended 
by striking the item relating to section 106 and inserting the 
following:

``Sec. 106. Prohibition on procurement contracts with and imposition of 
sanctions against persons that export sensitive technology to Iran.''.

  (f) Effective Date.--The amendments made by this section take effect 
on the date of the enactment of this Act and apply with respect to 
exports of sensitive technology to Iran that occur on or after such 
date of enactment.

SEC. 212. AUTHORITY OF STATE AND LOCAL GOVERNMENTS TO AVOID EXPOSURE TO 
                    SANCTIONED PERSONS AND SECTORS.

  (a) In General.--Section 202 of the Comprehensive Iran Sanctions, 
Accountability, and Divestment Act of 2010 (22 U.S.C. 8532) is amended 
by striking subsections (a), (b), and (c) and inserting the following:
  ``(a) Sense of Congress.--It is the sense of Congress that the United 
States should support the decision of any State or local government to 
divest from or prohibit the investment of assets of the State or local 
government, to prohibit the issuance of licenses to conduct business in 
the State or locality to, and to impose disclosure and transparency 
requirements on, a person that invests in or conducts transactions for 
or with a person or sector subject to sanctions with respect to Iran.
  ``(b) Authority.--Notwithstanding any other provision of law, a State 
or local government may adopt and enforce measures that meet the 
requirements of subsection (d)--
          ``(1) to divest the assets of the State or local government 
        from a person described in subsection (c);
          ``(2) to prohibit investment of the assets of the State or 
        local government in any such person;
          ``(3) to prohibit the issuance of licenses to conduct 
        business in the State or locality to any such person; or
          ``(4) to impose disclosure and transparency requirements on 
        any such person.
  ``(c) Persons Described.--A person described in this subsection is a 
person that invests in or engages in any transaction with or for any 
person engaged in any activity for which sanctions may be imposed under 
any provision of Federal law imposing sanctions with respect to 
Iran.''.
  (b) Conforming Amendments.--Section 202 of the Comprehensive Iran 
Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8532) 
is amended--
          (1) in subsection (d)(4), by striking ``engages in investment 
        activities in Iran described in subsection (c)'' and inserting 
        ``is a person described in subsection (c)'';
          (2) in subsection (f), by striking ``or (i)'' and inserting 
        ``or (g)'';
          (3) by striking subsections (g) and (h) and by redesignating 
        subsections (i) and (j) as subsections (g) and (h), 
        respectively; and
          (4) in paragraph (1) of subsection (g), as redesignated by 
        paragraph (3), by striking ``(determined without regard to 
        subsection (c))''.
  (c) Effective Date.--The amendments made by this section apply to 
measures adopted by State and local governments on or after the date of 
the enactment of this Act.

SEC. 213. SENSE OF CONGRESS REGARDING THE EUROPEAN CENTRAL BANK.

  (a) Findings.--Congress finds the following:
          (1) The Government of Iran, its agencies and 
        instrumentalities, continue to have access to, and utilize, 
        euro-denominated transactions, including for goods and services 
        that are subject to sanctions imposed by the United States, the 
        European Union and its member states and by the United Nations.
          (2) The Guidelines of the European Central Bank (Article 
        39(1)) states that: ``Participants shall be deemed to be aware 
        of, and shall comply with, all obligations on them relating to 
        legislation on data protection, prevention of money laundering 
        and the financing of terrorism, proliferation-sensitive nuclear 
        activities and the development of nuclear weapons delivery 
        systems, in particular in terms of implementing appropriate 
        measures concerning any payments debited or credited on their 
        PM accounts.''
          (3) United States and European convergence with respect to 
        United States sanctions efforts toward the Government of Iran 
        is a vital component of United States policy aimed at 
        preventing the Government of Iran from acquiring a nuclear 
        weapons capability.
  (b) Sense of Congress.--It is the sense of Congress that the 
President should continue to closely coordinate and cooperate with the 
European Union and its member states to restrict access to and use of 
the euro currency by the Government of Iran, its agencies and 
instrumentalities, for transactions with the exception of food, 
medicine, medical devices, and agricultural commodities.

SEC. 214. IMPOSITION OF SANCTIONS WITH RESPECT TO CERTAIN TRANSACTIONS 
                    IN FOREIGN CURRENCIES.

  (a) Imposition of Sanctions.--Subtitle B of title II of the Iran 
Threat Reduction and Syria Human Rights Act of 2012 (22 U.S.C. 8721 et 
seq.) is amended by inserting after section 220 the following:

``SEC. 220A. IMPOSITION OF SANCTIONS WITH RESPECT TO CERTAIN 
                    TRANSACTIONS IN FOREIGN CURRENCIES.

  ``(a) In General.--The President--
          ``(1) shall prohibit the opening, and prohibit or impose 
        strict conditions on the maintaining, in the United States of a 
        correspondent account or a payable-through account by a foreign 
        financial institution that is a person described in subsection 
        (b); and
          ``(2) may impose sanctions pursuant to the International 
        Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) with 
        respect to any other person described in subsection (b).
  ``(b) Person Described.--A person described in this subsection is a 
person the President determines has--
          ``(1) knowingly conducted or facilitated a significant 
        transaction involving the currency of a country other than the 
        country in which the person is operating at the time of the 
        transaction with, for, or on behalf of--
                  ``(A) the Central Bank of Iran or another Iranian 
                financial institution designated by the Secretary of 
                the Treasury for the imposition of sanctions pursuant 
                to the International Emergency Economic Powers Act (50 
                U.S.C. 1701 et seq.); or
                  ``(B) a person described in section 1244(c)(2) of the 
                Iran Freedom and Counter-Proliferation Act (22 U.S.C. 
                8803(c)(2)) (other than a person described in 
                subparagraph (C)(iii) of that section); or
          ``(2) knowingly conducted or facilitated a significant 
        transaction by another person involving the currency of a 
        country other than the country in which that other person is 
        operating at the time of the transaction, with, for, or on 
        behalf of a person described in subparagraph (A) or (B) of 
        paragraph (1).
  ``(c) Waiver.--
          ``(1) In general.--The President may waive the application of 
        subsection (a) with respect to a person for a period of not 
        more than 180 days, and may renew that waiver for additional 
        periods of not more than 180 days, if the President--
                  ``(A) determines that the waiver is vital to the 
                national security of the United States; and
                  ``(B) not less than 7 days before the waiver or the 
                renewal of the waiver, as the case may be, takes 
                effect, submits a report to the appropriate 
                congressional committees on the waiver and the reason 
                for the waiver.
          ``(2) Form of report.--Each report submitted under paragraph 
        (1)(B) shall be submitted in unclassified form but may include 
        a classified annex.
  ``(d) Rule of Construction.--Nothing in this section shall be 
construed to prohibit any person from, or authorize or require the 
imposition of sanctions with respect to any person for, conducting or 
facilitating any transaction in the currency of the country in which 
the person is operating at the time of the transaction for the sale of 
agricultural commodities, food, medicine, or medical devices.
  ``(e) Definitions.--In this section:
          ``(1) Account; correspondent account; payable-through 
        account.--The terms `account', `correspondent account', and 
        `payable-through account' have the meanings given those terms 
        in section 5318A of title 31, United States Code.
          ``(2) Agricultural commodity.--The term `agricultural 
        commodity' has the meaning given that term in section 102 of 
        the Agricultural Trade Act of 1978 (7 U.S.C. 5602).
          ``(3) Foreign financial institution.--The term `foreign 
        financial institution' has the meaning given that term in 
        section 561.308 of title 31, Code of Federal Regulations (or 
        any corresponding similar regulation or ruling).
          ``(4) Iranian financial institution.--The term `Iranian 
        financial institution' has the meaning given that term in 
        section 104A(d) of the Comprehensive Iran Sanctions, 
        Accountability, and Divestment Act of 2010 (22 U.S.C. 
        8513b(d)).
          ``(5) 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).
          ``(6) 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).
          ``(7) Transaction.--The term `transaction' includes a foreign 
        exchange swap, a foreign exchange forward, and any other type 
        of similar currency exchange or conversion or similar 
        derivative instrument.''.
  (b) Conforming Amendments.--
          (1) Implementation.--Section 601(a)(1) of the Iran Threat 
        Reduction and Syria Human Rights Act of 2012 (22 U.S.C. 
        8781(a)(1)) is amended by inserting ``220A,'' after ``220,''.
          (2) Penalties.--Section 601(b)(2)(A) of such Act (22 U.S.C. 
        8781(b)(2)(A)) is amended by striking ``and 220,'' and 
        inserting ``220, and 220A,''.
          (3) Termination.--Section 605(a) of such Act (22 U.S.C. 
        8785(a)) is amended by inserting ``220A,'' after ``220,''.
  (c) Clerical Amendment.--The table of contents for the Iran Threat 
Reduction and Syria Human Rights Act of 2012 is amended by inserting 
after the item relating to section 220 the following:

``Sec. 220A. Imposition of sanctions with respect to certain 
transactions in foreign currencies.''.

  (d) Effective Date.--The amendments made by this section take effect 
on the date of the enactment of this Act and apply with respect to 
transactions entered into on or after May 22, 2013.

SEC. 215. SANCTIONS WITH RESPECT TO CERTAIN TRANSACTIONS WITH IRAN.

  (a) In General.--Subtitle B of title II of the Iran Threat Reduction 
and Syria Human Rights Act of 2012 (22 U.S.C. 8721 et seq.) is amended 
by adding at the end the following new section:

``SEC. 225. SANCTIONS WITH RESPECT TO CERTAIN TRANSACTIONS WITH IRAN.

  ``(a) Authorization of Sanctions.--
          ``(1) In general.--Except as specifically provided in this 
        section, the President may impose sanctions pursuant to the 
        International Emergency Economic Powers Act (50 U.S.C. 1701 et 
        seq.) on a foreign person that the President determines has, on 
        or after the date that is 60 days after the date of the 
        enactment of the Nuclear Iran Prevention Act of 2013, knowingly 
        conducted or facilitated a significant financial transaction 
        with the Central Bank of Iran or other Iranian financial 
        institution that has been designated by the Secretary of the 
        Treasury for the imposition of sanctions pursuant to the 
        International Emergency Economic Powers Act, for--
                  ``(A) the purchase of goods or services by a person 
                in Iran or on behalf of a person in Iran; or
                  ``(B) the purchase of goods or services from a person 
                in Iran or on behalf of a person in Iran.
          ``(2) Rule of construction.--Nothing in this section shall be 
        construed to affect the imposition of sanctions with respect to 
        a financial transaction for the purchase of petroleum or 
        petroleum products from Iran under section 1245 of the National 
        Defense Authorization Act for Fiscal Year 2012 (Public Law 112-
        81; 125 Stat. 1648).
  ``(b) Exception for Overall Reductions of Exports to and Imports From 
Iran.--
          ``(1) In general.--The President is authorized not to impose 
        sanctions under subsection (a) on a foreign person if the 
        President determines and submits to the appropriate 
        congressional committees a report that contains a determination 
        of the President that the country with primary jurisdiction 
        over the foreign person has, during the time period described 
        in paragraph (2), significantly reduced the value and volume of 
        imports and exports of goods (other than petroleum or petroleum 
        products) and services between such country and Iran.
          ``(2) Time period described.--The time period referred to in 
        paragraph (1) is the 60-day period ending on the date on which 
        the President makes the determination under paragraph (1) as 
        compared to the immediately preceding 60-day period.
  ``(c) Exception for Sales of Agricultural Commodities, Food, Medicine 
and Medical Devices.--The President may not impose sanctions under 
subsection (a) on a foreign person with respect to a transaction for 
the sale of agricultural commodities, food, medicine or medical devices 
to Iran.
  ``(d) Definitions.--In this section:
          ``(1) Foreign person.--The term `foreign person' has the 
        meaning given that term in section 14 of the Iran Sanctions Act 
        of 1996 (Public Law 104-172; 50 U.S.C. 1701 note).
          ``(2) Iranian financial institution.--The term `Iranian 
        financial institution' has the meaning given that term in 
        section 104A(d) of the Comprehensive Iran Sanctions, 
        Accountability, and Divestment Act of 2010 (22 U.S.C. 
        8513b(d)).''.
  (b) Clerical Amendment.--The table of contents for the Iran Threat 
Reduction and Syria Human Rights Act of 2012 is amended by inserting 
after the item relating to section 224 the following:

``Sec. 225. Sanctions with respect to certain transactions with 
Iran.''.

                       Subtitle C--Other Matters

SEC. 221. IMPOSITION OF SANCTIONS WITH RESPECT TO THE CENTRAL BANK OF 
                    IRAN AND OTHER IRANIAN FINANCIAL INSTITUTIONS.

  (a) Exception to Applicability of Sanctions With Respect to Petroleum 
Transactions.--Section 1245(d)(4)(D)(i)(I) of the National Defense 
Authorization Act for Fiscal Year 2012 (Public Law 112-81; 125 Stat. 
1648; 22 U.S.C. 8513a(d)(4)(D)(i)(I)) is amended--
          (1) by striking ``reduced reduced'' and inserting 
        ``reduced'';
          (2) by inserting ``value and'' before ``volume'';
          (3) by inserting ``or of Iranian origin'' after ``from 
        Iran''; and
          (4) by adding at the end before the semicolon the following: 
        ``, and the President certifies in writing to Congress that the 
        President has based such determination on accurate information 
        on that country's total purchases of crude oil from Iran or of 
        Iranian origin''.
  (b) Financial Transactions Described.--Section 1245(d)(4)(D)(ii)(II) 
of the National Defense Authorization Act for Fiscal Year 2012 (Public 
Law 112-81; 125 Stat. 1648) is amended--
          (1) by striking ``(II)'' and inserting ``(II)(aa)'';
          (2) in item (aa) (as designated by paragraph (1) of this 
        subsection), by striking the period at the end and inserting 
        ``; and''; and
          (3) by adding at the end the following new item:
                                  ``(bb) the foreign financial 
                                institution holding the account 
                                described in item (aa) does not 
                                knowingly facilitate any significant 
                                financial transfers for, with, or on 
                                behalf of the Government of Iran, 
                                unless the transaction is excepted from 
                                sanctions under paragraph (2) or is a 
                                transaction described in subclause (I) 
                                and item (aa).''.
  (c) Strategy to Reduce Crude Oil Purchases From Iran or of Iranian 
Origin.--
          (1) Statement of policy.--It is the policy of the United 
        States to seek to ensure that countries that have received an 
        exception under subparagraph (D)(i)(I) of section 1245(d)(4) of 
        the National Defense Authorization Act for Fiscal Year 2012 
        (Public Law 112-81; 125 Stat. 1648) shall reduce their crude 
        oil purchases from Iran or of Iranian origin so that the 
        aggregate amount of such purchases is reduced by not less than 
        an average of 1,000,000 barrels of crude oil per day by the end 
        of the 1-year period beginning on the date of submission of the 
        strategy described in subparagraph (E)(ii) of such section (as 
        added by paragraph (2) of this subsection).
          (2) Amendment.--Section 1245(d)(4) of the National Defense 
        Authorization Act for Fiscal Year 2012 (Public Law 112-81; 125 
        Stat. 1648) is amended by adding at the end the following new 
        subparagraph:
                  ``(E) Strategy to reduce crude oil purchases from 
                iran or of iranian origin.--
                          ``(i) In general.--Not later than 30 days 
                        after the date of the enactment of the Nuclear 
                        Iran Prevention Act of 2013, the President 
                        shall make a determination, based on the 
                        information contained in the most recent report 
                        required under subparagraph (A), of whether 
                        each country that received an exception under 
                        subparagraph (D)(i)(I) before such date of 
                        enactment is able to reduce its crude oil 
                        purchases from Iran or of Iranian origin so 
                        that the aggregate amount of such purchases is 
                        reduced by not less than an average of 
                        1,000,000 barrels of crude oil per day by the 
                        end of the 1-year period beginning on the date 
                        of submission of the strategy described in 
                        clause (ii). If the President makes an initial 
                        determination under this clause that the 
                        requirements of this clause cannot be met, then 
                        the President shall continue to make a 
                        determination under this clause every 90 days 
                        thereafter as to whether or not the 
                        requirements of this clause can be met.
                          ``(ii) Strategy.--If the President determines 
                        that the requirements of clause (i) can be met, 
                        then not later than 60 days after the date of 
                        such affirmative determination, the President 
                        shall develop and submit to the appropriate 
                        congressional committees a strategy to seek to 
                        ensure that the requirements of clause (i) are 
                        met by the end of the 1-year period beginning 
                        on such date of submission.
                          ``(iii) Future exceptions.--
                                  ``(I) Affirmative determination.--If 
                                the President determines that the 
                                strategy described in clause (ii) was 
                                achieved, then each country described 
                                in clause (i) shall be eligible to 
                                receive one or more further exceptions 
                                under subparagraph (D)(i)(I) in 
                                accordance with the provisions of such 
                                subparagraph.
                                  ``(II) Negative determination.--
                                Except as provided in subclause (III), 
                                if the President determines that the 
                                strategy described in clause (ii) was 
                                not achieved, then each country 
                                described in clause (i) shall be 
                                ineligible to receive any further 
                                exception under subparagraph (D)(i)(I) 
                                in accordance with the provisions of 
                                such subparagraph.
                                  ``(III) Exception.--
                                          ``(aa) In general.--Subclause 
                                        (II) shall not apply with 
                                        respect to a country described 
                                        in clause (i) if the country--
                                                  ``(AA) dramatically 
                                                reduced its crude oil 
                                                purchases from Iran or 
                                                of Iranian origin 
                                                during the 1-year 
                                                period described in 
                                                clause (ii); and
                                                  ``(BB) has committed 
                                                itself to continue to 
                                                reduce its crude oil 
                                                purchases from Iran or 
                                                of Iranian origin to a 
                                                de minimis level.
                                          ``(bb) Data.--The President 
                                        shall submit to the appropriate 
                                        congressional committees all 
                                        data used to make a 
                                        determination under item (aa) 
                                        not later than 15 days before 
                                        issuing an exception under item 
                                        (aa).
                          ``(iv) Appropriate congressional 
                        committees.--In this subparagraph, the term 
                        `appropriate congressional committees' means--
                                  ``(I) the Committee on Foreign 
                                Affairs and the Committee on Financial 
                                Services of the House of 
                                Representatives; and
                                  ``(II) the Committee on Foreign 
                                Relations and the Committee on Banking, 
                                Housing, and Urban Affairs of the 
                                Senate.''.
  (d) Definition of Crude Oil.--Section 1245(d)(4)(D) of the National 
Defense Authorization Act for Fiscal Year 2012 (22 U.S.C. 
8513a(d)(4)(D)) is amended by adding at the end the following new 
clause:
                          ``(iii) Crude oil.--In this subparagraph, the 
                        term `crude oil' includes unfinished oils, 
                        liquefied petroleum gases, distillate fuel oil, 
                        and residual fuel oil.''.
  (e) Waiver.--Section 1245(d)(5)(A) of the National Defense 
Authorization Act for Fiscal Year 2012 (22 U.S.C. 8513a(d)(5)(A)) is 
amended by striking ``in the national'' and inserting ``vital to the 
national''.
  (f) Definitions of ``Significant Reduction''.--Section 1245(h)(3) of 
the National Defense Authorization Act for Fiscal Year 2012 (22 U.S.C. 
8513a(h)(3)) is amended--
          (1) by striking ``price or volume'' and inserting ``price and 
        volume''; and
          (2) by adding at the end before the period the following: 
        ``and at least a pro rata amount totaling, in the aggregate, 
        not less than an average of 1,000,000 barrels of crude oil per 
        day by the end of the 1-year period beginning on the date of 
        submission of the strategy described in subsection 
        (d)(4)(E)(ii)''.
  (g) Effective Date.--The amendments made by this section take effect 
beginning on the date that is 180 days after the date of the enactment 
of this Act.

SEC. 222. IMPOSITION OF SANCTIONS WITH RESPECT TO PORTS, SPECIAL 
                    ECONOMIC ZONES, FREE ECONOMIC ZONES, AND STRATEGIC 
                    SECTORS OF IRAN.

  (a) Findings.--Subsection (a)(1) of section 1244 of the National 
Defense Authorization Act for Fiscal Year 2013 (22 U.S.C. 8803) is 
amended by striking ``and shipbuilding'' and inserting ``shipbuilding, 
automotive, construction, engineering, or mining''.
  (b) Designation of Ports, Special Economic Zones, Free Economic 
Zones, and Entities in Strategic Sectors as Entities of Proliferation 
Concern.--Subsection (b) of such section is amended--
          (1) in the subsection heading, by striking ``and Entities in 
        the Energy, Shipping, and Shipbuilding Sectors'' and inserting 
        ``, Special Economic Zones, Free Economic Zones, and Entities 
        in Strategic Sectors''; and
          (2) by striking ``and entities in the energy, shipping, and 
        shipbuilding sectors'' and inserting ``, entities that operate 
        special economic zones or free economic zones, and entities in 
        strategic sectors (as defined in subsection (c)(4))''.
  (c) Blocking of Property of Ports, Special Economic Zones, Free 
Economic Zones, and Entities in Strategic Sectors.--Subsection (c) of 
such section is amended--
          (1) in the subsection heading, by striking ``Entities in 
        Energy, Shipping, and Shipbuilding Sectors'' and inserting 
        ``Ports, Special Economic Zones, Free Economic Zones, and 
        Entities in Strategic Sectors'';
          (2) in paragraph (2)--
                  (A) by striking ``the energy, shipping, or 
                shipbuilding sectors'' each place it appears and 
                inserting ``a strategic sector (as defined in paragraph 
                (4)(A))''; and
                  (B) by inserting ``, special economic zone, or free 
                economic zone'' after ``port'' each place it appears; 
                and
          (3) by adding at the end the following new paragraphs:
          ``(4) Strategic sector defined.--In this section, the term 
        `strategic sector' means--
                  ``(A) the energy, shipping, shipbuilding, automotive, 
                or mining sector of Iran;
                  ``(B) the construction or engineering sector of Iran 
                if the President determines and reports to Congress not 
                later than 45 days after the date of the enactment of 
                the Nuclear Iran Prevention Act of 2013 that the 
                construction or engineering sector of Iran, as the case 
                may be, is of strategic importance to Iran; and
                  ``(C) any other sector that the President designates 
                as of strategic importance to Iran.
          ``(5) Notification and report relating to strategic 
        sectors.--
                  ``(A) Notification.--The President shall submit to 
                Congress a notification of the designation of a sector 
                as a strategic sector of Iran for purposes of paragraph 
                (4)(C) not later than 30 days after the date on which 
                the President makes such designation.
                  ``(B) Report.--Not later than 90 days after the date 
                on which the President submits to Congress a 
                notification of the designation of a sector as a 
                strategic sector of Iran under subparagraph (A), the 
                Comptroller General of the United States shall submit 
                to Congress a report that contains--
                          ``(i) a review and comment on such 
                        designation; and
                          ``(ii) recommendations regarding the 
                        designation of additional sectors as strategic 
                        sectors of Iran for purposes of paragraph 
                        (4).''.
  (d) Additional Sanctions With Respect to Strategic Sectors.--
Subsection (d) of such section is amended--
          (1) in the subsection heading, by striking ``the Energy, 
        Shipping, and Shipbuilding Sectors'' and inserting ``Strategic 
        Sectors''; and
          (2) in paragraph (3), by striking ``the energy, shipping, or 
        shipbuilding sectors'' and inserting ``a strategic sector (as 
        defined in subsection (c)(4)(A))''.
  (e) Exception for Afghanistan Reconstruction.--Subsection (f) of such 
section is amended--
          (1) in the matter preceding paragraph (1), by inserting ``for 
        a period of not more than 1 year, and may renew that exception 
        for additional periods of not more than 1 year'' after 
        ``economic development for Afghanistan'';
          (2) in paragraph (1)--
                  (A) by striking ``to the extent that'' and inserting 
                ``if'';
                  (B) by inserting ``or the renewal of the exception, 
                as the case may be,'' after ``such an exception''; and
                  (C) by striking ``in the national interest'' and 
                inserting ``in the national security interest''; and
          (3) in paragraph (2)--
                  (A) by inserting ``or the renewal of the exception, 
                as the case may be,'' before ``not later than 15 
                days''; and
                  (B) by inserting at the end before the period the 
                following: ``or the renewal of the exception''.
  (f) Conforming Amendment.--Such section is further amended in the 
section heading by striking ``the energy, shipping, and shipbuilding 
sectors'' and inserting ``ports, special economic zones, free economic 
zones, and strategic sectors''.
  (g) Effective Date.--The amendments made by this section--
          (1) take effect on the date that is 90 days after the date of 
        the enactment of this Act; and
          (2)(A) with respect to subsection (c) of section 1244 of the 
        National Defense Authorization Act for Fiscal Year 2013, as so 
        amended, apply with respect to all transactions in all property 
        and interests in property of any person described in subsection 
        (c)(2) of such section that occur on or after the date that is 
        180 days after such date of enactment; and
          (B)(i) with respect to subsection (d)(1) of section 1244 of 
        the National Defense Authorization Act for Fiscal Year 2013, 
        apply with respect to the sale, supply, or transfer to or from 
        Iran of goods or services described in subsection (d)(3) of 
        such section, as so amended, that occurs on or after the date 
        that is 180 days after such date of enactment; and
          (ii) with respect to subsection (d)(2) of section 1244 of the 
        National Defense Authorization Act for Fiscal Year 2013, apply 
        with respect to the conduct or facilitation of a significant 
        financial transaction for the sale, supply, or transfer to or 
        from Iran of goods or services described in subsection (d)(3) 
        of such section, as so amended, that occurs on or after the 
        date that is 180 days after such date of enactment.

SEC. 223. REPORT ON DETERMINATIONS NOT TO IMPOSE SANCTIONS ON PERSONS 
                    WHO ALLEGEDLY SELL, SUPPLY, OR TRANSFER PRECIOUS 
                    METALS TO OR FROM IRAN.

  Section 1245 of the National Defense Authorization Act for Fiscal 
Year 2013 (22 U.S.C. 8804) is amended--
          (1) by redesignating subsection (h) as subsection (i); and
          (2) by inserting after subsection (g) the following new 
        subsection:
  ``(h) Report on Determinations Not to Impose Sanctions on Persons Who 
Allegedly Sell, Supply, or Transfer Precious Metals to or From Iran.--
          ``(1) In general.--Not later than 90 days after the date of 
        the enactment of Nuclear Iran Prevention Act of 2013, and every 
        90 days thereafter, the President shall submit to the 
        appropriate congressional committees a report on each 
        determination of the President during the preceding 90-day 
        period not to impose sanctions under subsection (a) or (c) with 
        respect to a person who allegedly sells, supplies, or transfers 
        precious metals, directly or indirectly, to or from Iran, 
        together with the reasons for such determination.
          ``(2) Form.--The report required by paragraph (1) shall be 
        submitted in unclassified form, but may contain a classified 
        annex, if necessary.''.

SEC. 224. IMPOSITION OF SANCTIONS WITH RESPECT TO FOREIGN FINANCIAL 
                    INSTITUTIONS THAT FACILITATE FINANCIAL TRANSACTIONS 
                    ON BEHALF OF PERSONS OWNED OR CONTROLLED BY 
                    SPECIALLY DESIGNATED NATIONALS.

  Section 1247 of the National Defense Authorization Act for Fiscal 
Year 2013 (22 U.S.C. 8806) is amended--
          (1) by redesignating subsection (f) as subsection (g); and
          (2) by inserting after subsection (e) the following new 
        subsection:
  ``(f) Persons Owned or Controlled by Specially Designated 
Nationals.--
          ``(1) In general.--The President shall impose sanctions 
        described in subsection (a) with respect to a foreign financial 
        institution, including but not limited to a foreign central 
        bank, that the President determines has, on or after the date 
        that is 90 days after the date of the enactment of the Nuclear 
        Iran Prevention Act of 2013, knowingly facilitated a 
        significant financial transaction on behalf of any person 
        determined by the President to be directly owned or controlled 
        by an Iranian person included on the list of specially 
        designated nationals and blocked persons maintained by the 
        Office of Foreign Assets Control of the Department of the 
        Treasury (other than an Iranian financial institution described 
        in subsection (b)).
          ``(2) Sense of congress.--It is the sense of Congress that 
        the President routinely should determine on or after the date 
        of the enactment of the Nuclear Iran Prevention Act of 2013 
        those persons that are directly or indirectly owned or 
        controlled by an Iranian person included on the list of 
        specially designated nationals and blocked persons maintained 
        by the Office of Foreign Assets Control of the Department of 
        the Treasury (other than an Iranian financial institution 
        described in subsection (b)).
          ``(3) Consideration of data from other countries and 
        nongovernmental organizations.--The President shall consider 
        credible data already obtained by other countries and 
        nongovernmental organizations in making determinations 
        described in paragraph (1).''.

SEC. 225. REPEAL OF EXEMPTIONS UNDER SANCTIONS PROVISIONS OF NATIONAL 
                    DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2013.

  Subtitle D of title XII of the National Defense Authorization Act for 
Fiscal Year 2013 (22 U.S.C. 8801 et seq.) is amended--
          (1) in section 1244--
                  (A) in subsection (c)(1)--
                          (i) by striking ``(1) Blocking of property.--
                        '' and all that follows through ``On and 
                        after'' and inserting ``(1) Blocking of 
                        property.--On and after''; and
                          (ii) by striking subparagraph (B); and
                  (B) in subsection (d)(1)--
                          (i) by striking ``(1) Sale, supply, or 
                        transfer of certain goods and services.--'' and 
                        all that follows through ``Except as provided'' 
                        and inserting ``(1) Sale, supply, or transfer 
                        of certain goods and services.--Except as 
                        provided''; and
                          (ii) by striking subparagraph (B);
          (2) in section 1245(a)--
                  (A) by striking ``(a) Sale, Supply, or Transfer of 
                Certain Materials.--'' and all that follows through 
                ``The President'' and inserting ``(a) Sale, Supply, or 
                Transfer of Certain Materials.--The President'';
                  (B) by redesignating subparagraphs (A), (B), and (C) 
                as paragraphs (1), (2), and (3), respectively (and by 
                redesignating all sub-units therein accordingly);
                  (C) in paragraph (3)(B) (as redesignated)--
                          (i) in clause (i), by striking ``subclause 
                        (I) of clause (i)'' and inserting ``clause (i) 
                        of subparagraph (A)'';
                          (ii) in clause (ii), by striking ``subclause 
                        (II) of that clause'' and inserting ``clause 
                        (ii) of that subparagraph''; and
                          (iii) in clause (iii), by striking 
                        ``subclause (III) of that clause'' and 
                        inserting ``clause (iii) of that 
                        subparagraph''; and
                  (D) by striking ``(2) exception.--'' and all that 
                follows through ``paragraph (1).''; and
          (3) in section 1246(a)--
                  (A) by striking ``(a) Imposition of Sanctions.--'' 
                and all that follows through ``Except as provided'' and 
                inserting ``(a) Imposition of Sanctions.--Except as 
                provided'';
                  (B) by redesignating subparagraphs (A), (B), and (C) 
                as paragraphs (1), (2), and (3), respectively (and by 
                redesignating all sub-units therein accordingly); and
                  (C) by striking ``(2) exception.--'' and all that 
                follows through ``paragraph (1).''; and

SEC. 226. TERMINATION OF GOVERNMENT CONTRACTS WITH PERSONS WHO SELL 
                    GOODS, SERVICES, OR TECHNOLOGY TO, OR CONDUCT ANY 
                    OTHER TRANSACTION WITH, IRAN.

  (a) Modification of Federal Acquisition Regulation.--Not later than 
90 days after the date of the enactment of this Act, the Federal 
Acquisition Regulation shall be revised to require a certification from 
each person that is a prospective contractor that the person, and any 
person under common ownership or control with the person, does not sell 
goods, services, or technology to, or conduct any other transaction 
with, Iran for which sanctions may be imposed under this Act.
  (b) Remedies.--
          (1) In general.--If the head of an executive agency 
        determines that a person has submitted a false certification 
        under subsection (a) on or after the date on which the 
        applicable revision of the Federal Acquisition Regulation 
        required by this section becomes effective, the head of that 
        executive agency shall terminate a contract with such person or 
        debar or suspend such person from eligibility for Federal 
        contracts for a period of not less than 2 years. Any such 
        debarment or suspension shall be subject to the procedures that 
        apply to debarment and suspension under the Federal Acquisition 
        Regulation under subpart 9.4 of part 9 of title 48, Code of 
        Federal Regulations.
          (2) Inclusion on list of parties excluded from federal 
        procurement and nonprocurement programs.--The Administrator of 
        General Services shall include on the List of Parties Excluded 
        from Federal Procurement and Nonprocurement Programs maintained 
        by the Administrator under part 9 of the Federal Acquisition 
        Regulation each person that is debarred, suspended, or proposed 
        for debarment or suspension by the head of an executive agency 
        on the basis of a determination of a false certification under 
        paragraph (1).
  (c) Rule of Construction.--This section shall not be construed to 
limit the use of other remedies available to the head of an executive 
agency or any other official of the Federal Government on the basis of 
a determination of a false certification under subsection (a).
  (d) Waivers.--
          (1) In general.--The President may on a case-by-case basis 
        waive the requirement that a person make a certification under 
        subsection (a) if the President determines and certifies in 
        writing to the congressional committees described in paragraph 
        (2) that it is essential to the national security interests of 
        the United States to do so.
          (2) Congressional committees described.--The congressional 
        committees referred to in paragraph (1) are--
                  (A) the Committee on Foreign Affairs, the Committee 
                on Armed Services, and the Committee on Oversight and 
                Government Reform of the House of Representatives; and
                  (B) the Committee on Foreign Relations, the Committee 
                on Armed Services, and the Committee on Homeland 
                Security and Governmental Affairs of the Senate.
  (e) Definitions.--In this section:
          (1) Executive agency.--The term ``executive agency'' has the 
        meaning given that term in section 133 of title 41, United 
        States Code.
          (2) Federal acquisition regulation.--The term ``Federal 
        Acquisition Regulation'' means the regulation issued pursuant 
        to section 1303(a)(1) of title 41, United States Code.
  (f) Applicability.--The revisions to the Federal Acquisition 
Regulation required under subsection (a) shall apply with respect to 
contracts for which solicitations are issued on or after the date that 
is 90 days after the date of the enactment of this Act.

SEC. 227. CONDITIONS FOR ENTRY AND OPERATION OF VESSELS.

  (a) In General.--The Ports and Waterways Safety Act (33 U.S.C. 1221 
et seq.) is amended by adding at the end the following:

``SEC. 16. PROHIBITION ON ENTRY AND OPERATION.

  ``(a) In General.--No foreign vessel described in subsection (b) 
shall enter or operate in the navigable waters of the United States or 
transfer cargo in any port or place under the jurisdiction of the 
United States.
  ``(b) Vessels Described.--A vessel referred to in subsection (a) is a 
foreign vessel--
          ``(1) for which a Notice of Arrival is required to be filed 
        under section 160 of title 33, Code of Federal Regulations, as 
        in effect on the date of enactment of the Nuclear Iran 
        Prevention Act of 2013; and
          ``(2) that is knowingly registered, pursuant to the Geneva 
        Convention on the High Seas (13 U.S.T. 2312; TIAS 5200; 450 
        UNTS 82), by a ship registry that is maintaining a registration 
        of a vessel that is included in the list published under 
        subsection (c).
  ``(c) Notification of Governments.--The Secretary of Transportation, 
in consultation with the Secretary of State, shall--
          ``(1) maintain timely information on registrations of all 
        foreign vessels over 300 gross tons that are--
                  ``(A) owned or operated by or on behalf of--
                          ``(i) the National Iran Tanker Company or the 
                        Islamic Republic of Iran Shipping Line; or
                          ``(ii) any successor to an entity referred to 
                        in clause (i); or
                  ``(B) otherwise owned or operated by or on behalf of 
                Iran;
          ``(2) notify each government the agents or instrumentalities 
        of which are maintaining a registration of a foreign vessel 
        described in paragraph (1), that all vessels registered under 
        such government's authority are prohibited from entering or 
        operating in the navigable waters of the United States or 
        transferring cargo in any port or place under the jurisdiction 
        of the United States; and
          ``(3) publish in the Federal Register a list of vessels 
        described in paragraph (1), including periodic updates of such 
        list.
  ``(d) Notification of Vessels.--
          ``(1) In general.--Except as provided in paragraphs (2) and 
        (3), upon receiving a Notice of Arrival under section 160 of 
        title 33, Code of Federal Regulations (as in effect on the date 
        of enactment of the Nuclear Iran Prevention Act of 2013) from a 
        vessel described in (b), the Secretary shall notify the master 
        of such vessel that the vessel may not enter or operate in the 
        navigable waters of the United States or transfer cargo in any 
        port or place under the jurisdiction of the United States.
          ``(2) Provisional entry.--The Secretary may allow provisional 
        entry of, or transfer of cargo from, a foreign vessel described 
        in subsection (b) if such entry or transfer is necessary for 
        the safety of the vessel or persons aboard.
          ``(3) Entry for due diligence.--The Secretary may allow entry 
        of, and transfer of cargo from, a vessel described in 
        subsection (b) if the master shows the owner and operator of 
        the vessel exercised due diligence to avoid registration of the 
        vessel by a registry that registers vessels described in 
        subsection (c).
  ``(e) Right of Innocent Passage.--This section shall not be construed 
as authority to restrict the right of innocent passage as recognized 
under international law.
  ``(f) Foreign Vessel Defined.--In this section the term `foreign 
vessel' has the meaning given that term in section 2101 of title 46, 
United States Code.''.
  (b) Deadline for Publication.--The Secretary shall publish a list 
under section 16(c)(3) of the Ports and Waters Safety Act, as amended 
by this section, by not later than 30 days after the date of the 
enactment of this Act.
  (c) Limitation on Application of Prohibition.--Subsection (a) of 
section 16 of the Ports and Waters Safety Act, as amended by this 
section, shall not apply until 90 days after the date of publication of 
the list required by subsection (c) of such section.

 TITLE III--ADDITIONAL AUTHORITIES TO PREVENT CENSORSHIP ACTIVITIES IN 
                                  IRAN

SEC. 301. REPORT ON IMPLEMENTATION OF SANCTIONS AGAINST THE ISLAMIC 
                    REPUBLIC OF IRAN BROADCASTING.

  (a) In General.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of State shall submit to Congress 
a report on the following:
          (1) The current status of availability of the Islamic 
        Republic of Iran Broadcasting (IRIB) on international 
        satellites, entities that facilitate its operation by providing 
        services or equipment, and the technical means that it engages 
        in jamming.
          (2) The instances, since January 1, 2012, in which the IRIB 
        engaged in activities that violated Article 19 of the 
        International Covenant on Civil and Political Rights, including 
        broadcasting forced confessions and hate speech against 
        minorities.
          (3) The instances, since January 1, 2012, in which 
        international broadcasting programs originating from the United 
        States and Europe have been subject to disruption in Iran, with 
        relevant details such as which programs were disrupted, 
        available location information on the origin of the disruption, 
        and the extent of the disruption.
  (b) Coordination.--In developing the report required by subsection 
(a), the Secretary of State shall coordinate with the Broadcasting 
Board of Governors, the Secretary of the Treasury, and the heads of 
other relevant Federal departments and agencies.
  (c) Public Availability.--All unclassified portions of the report 
required by subsection (a) shall be made publicly available on the 
Internet web site of the Department of State.

SEC. 302. LIST OF PERSONS WHO ARE HIGH-RISK RE-EXPORTERS OF SENSITIVE 
                    TECHNOLOGIES.

  (a) In General.--Not later than 90 days after the date of the 
enactment of this Act, and every 90 days thereafter, the Secretary of 
Commerce, in conjunction with the Secretary of State and the Secretary 
of the Treasury, shall make publicly available and update as 
appropriate a list of persons who are high-risk re-exporters of 
sensitive technologies in order to seek to ensure that the Government 
of Iran or an entity owned or controlled by that Government is unable 
to obtain sensitive technologies through the re-export of such 
sensitive technologies by third-party intermediaries.
  (b) Definition.--In this section, the term ``sensitive technology'' 
has the meaning given that term in section 106 of the Comprehensive 
Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 
8515).

SEC. 303. SENSE OF CONGRESS ON PROVISION OF INTERCEPT TECHNOLOGIES TO 
                    IRAN.

  It is the sense of Congress that--
          (1) those that provide intercept technologies that limit 
        freedom of speech or expression to the Government of Iran 
        should be held accountable for the repression of the Iranian 
        people; and
          (2) no person should use an existing contract with the 
        Government of Iran as a justification to continue to supply 
        intercept technologies to the Government of Iran for purposes 
        of restricting the free flow of information.

SEC. 304. SENSE OF CONGRESS ON AVAILABILITY OF CONSUMER COMMUNICATION 
                    TECHNOLOGIES IN IRAN.

  It is the sense of Congress that--
          (1) the Department of the Treasury and Department of State 
        should encourage the free flow of information in Iran to 
        counter the Government of Iran's repression of its own people; 
        and
          (2) in order to facilitate the free flow of information in 
        Iran, the Department of Treasury should ensure that certain 
        consumer communication technologies are available to Iranian 
        civil society and the Iranian people.

SEC. 305. EXPEDITED CONSIDERATION OF REQUESTS FOR AUTHORIZATION OF 
                    TRANSFER OF GOODS AND SERVICES TO IRAN TO 
                    FACILITATE THE ABILITY OF IRANIAN PERSONS TO FREELY 
                    COMMUNICATE.

  (a) In General.--Section 413 of the Iran Threat Reduction and Syria 
Human Rights Act of 2012 (22 U.S.C. 8753) is amended--
          (1) by redesignating subsection (e) as subsection (f); and
          (2) by inserting after subsection (d) the following new 
        subsection:
  ``(e) Rule of Construction.--The expedited process for the 
consideration of complete requests for authorization to engage in the 
activities described in subsection (a) shall be construed to also apply 
to the transfer of goods and services to Iran to facilitate the ability 
of Iranian persons to freely communicate, obtain information, and 
access the Internet and other communications systems.''.
  (b) Effective Date.--The amendments made by subsection (a) take 
effect on the date of the enactment of this Act and apply with respect 
to requests described in section 413 of the Iran Threat Reduction and 
Syria Human Rights Act of 2012, as so amended, that are submitted to 
the Office of Foreign Assets Control on or after such date of 
enactment.

                  TITLE IV--REPORTS AND OTHER MATTERS

SEC. 401. NATIONAL STRATEGY ON IRAN.

  (a) National Strategy Required.--The President shall develop a 
strategy, to be known as the ``National Strategy on Iran'', that 
provides strategic guidance for activities that support the objective 
of addressing the threats posed by Iran.
  (b) Annual Report.--Not later than 180 days after the date of the 
enactment of this Act or January 30, 2014, whichever occurs first, and 
every January 30 thereafter, the President shall submit to the 
appropriate congressional committees the National Strategy on Iran 
required under subsection (a).
  (c) Matters To Be Included.--The report required under subsection (b) 
shall include, at a minimum, the following:
          (1) A description of Iran's grand strategy and security 
        strategy, including strategic objectives, and the security 
        posture and objectives of Iran.
          (2) A description of the United States strategy to--
                  (A) address and counter the capabilities of Iran's 
                conventional forces and Iran's unconventional forces;
                  (B) disrupt and deny Iranian efforts to develop or 
                augment capabilities related to nuclear, 
                unconventional, and missile forces development;
                  (C) address the Government of Iran's economic 
                strategy to enable the objectives described in this 
                subsection;
                  (D) exploit key vulnerabilities; and
                  (E) combat Iranian efforts to suppress Internet 
                freedom, including actions of the United States to--
                          (i) work to promote expanded Internet access 
                        for democracy activists in Iran;
                          (ii) add a public diplomacy page to the 
                        United States' virtual embassy in Iran; and
                          (iii) leverage multilateral organizations 
                        committed to Internet connectivity in Iran.
          (3) An implementation plan for the United States strategy 
        described in paragraph (2).
  (d) Form.--The report required under subsection (b) shall be 
submitted in unclassified form to the greatest extent possible, but may 
include a classified annex, if necessary.
  (e) Appropriate Congressional Committees.--In this section, the term 
``appropriate congressional committees'' means--
          (1) the Committee on Foreign Affairs, the Committee on Armed 
        Services, the Committee on Financial Services, the Committee on 
        Ways and Means, and the Permanent Select Committee on 
        Intelligence of the House of Representatives; and
          (2) the Committee on Foreign Relations, the Committee on 
        Armed Services, the Committee on Banking, Housing, and Urban 
        Affairs, the Committee on Finance, and the Permanent Select 
        Committee on Intelligence of the Senate.

SEC. 402. REPORT ON IRANIAN NUCLEAR AND ECONOMIC CAPABILITIES.

  (a) In General.--Not later than 60 days after the date of the 
enactment of this Act, the President shall submit to the appropriate 
congressional committees a report on the following:
          (1) An estimate of the timeline for Iranian capabilities to 
        develop nuclear weapons, including--
                  (A) an estimate of the period of time it would take 
                Iran to produce enough weapons-grade uranium for a 
                single implosion-type nuclear weapon, taking into 
                account all known relevant technical data;
                  (B) an estimate of the period of time it would take 
                Iran to produce sufficient separated plutonium for a 
                single nuclear weapon;
                  (C) a description of the assumptions underlying the 
                estimates referred to in subparagraphs (A) and (B), and 
                any information about developments that might alter or 
                otherwise affect those assumptions;
                  (D) an estimate of the date by which the periods of 
                time referred to in subparagraphs (A) and (B) will be 
                less than 45 days; and
                  (E) a description of any efforts by the United States 
                to increase the frequency of inspections by the 
                International Atomic Energy Agency of nuclear 
                facilities in Iran.
          (2) An assessment of Iranian strategy and capabilities 
        relating to development of nuclear weapons, including--
                  (A) a summary and analysis of current nuclear weapons 
                capabilities;
                  (B) an estimate of the amount and sources of funding 
                expended by, and an analysis of procurement networks 
                utilized by, Iran to develop its nuclear weapons 
                capabilities;
                  (C) a summary of the capabilities of Iran's 
                unconventional weapons and Iran's ballistic missile 
                forces and Iran's cruise missile forces;
                  (D) a detailed analysis of the effectiveness of 
                Iran's unconventional weapons and Iran's ballistic 
                missile forces and Iran's cruise missile forces as 
                delivery systems for a nuclear device;
                  (E) a description of all efforts of Iran to design 
                and develop a nuclear weapon, including efforts to 
                design or fit warheads, and any other possible military 
                dimensions of the nuclear program of Iran; and
                  (F) an analysis of the procurement network, including 
                the amount and sources of funding expended by Iran on 
                programs to develop a nuclear weapons capability.
          (3) Projected economic effects of international sanctions on 
        Iran, including--
                  (A) an estimate of the capital accounts, current 
                accounts, and amounts of foreign exchange reserves 
                (including access to foreign exchange reserves) of the 
                Government of Iran, and other leading indicators of the 
                status of the economy of Iran;
                  (B) an estimate of timelines with respect to 
                macroeconomic viability of Iran, including the time by 
                which the Government of Iran will exhaust its foreign 
                exchange reserves;
                  (C) an estimate of the date by which the reserves of 
                the Central Bank of Iran will be insufficient for the 
                Government of Iran to avoid a severe balance of 
                payments crisis that prevents it from maintaining a 
                functioning economy, including--
                          (i) the inflation rate, exchange rates, 
                        unemployment rate, and budget deficits in Iran; 
                        and
                          (ii) other leading macroeconomic indicators 
                        used by the International Monetary Fund, 
                        professional rating agencies, and other 
                        credible sources to assess the economic health 
                        of a country;
                  (D) a description of the assumptions underlying the 
                estimate referred to in paragraph (3) and an indication 
                of how changes in each of those assumptions could 
                affect the estimate;
                  (E) an assessment of the effect of sanctions imposed 
                with respect to Iran on moving forward the date 
                referred to in subparagraph (C); and
                  (F) a description of actions taken by the Government 
                of Iran to delay the date referred to in subparagraph 
                (C).
  (b) Update.--The President shall submit to the appropriate 
congressional committees an update of the report required by subsection 
(a) every 60 days after the date of submission of the report that 
includes any pertinent developments to Iranian nuclear or economic 
capabilities.
  (c) Form.--The report required under subsection (a) and the update 
required under subsection (b) shall be submitted in unclassified form 
to the greatest extent possible, but may include a classified annex, if 
necessary.
  (d) Definitions.--In this section:
          (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                  (A) the Committee on Foreign Affairs, the Committee 
                on Armed Services, the Committee on Financial Services, 
                the Committee on Ways and Means, and the Permanent 
                Select Committee on Intelligence of the House of 
                Representatives; and
                  (B) the Committee on Foreign Relations, the Committee 
                on Armed Services, the Committee on Banking, Housing, 
                and Urban Affairs, the Committee on Finance, and the 
                Select Committee on Intelligence of the Senate.
          (2) Nuclear explosive device.--The term ``nuclear explosive 
        device'' means any device, whether assembled or disassembled, 
        that is designed to produce an instantaneous release of an 
        amount of nuclear energy from special nuclear material that is 
        greater than the amount of energy that would be released from 
        the detonation of one pound of trinitrotoluene (TNT).

SEC. 403. REPORT ON PLAUSIBILITY OF EXPANDING SANCTIONS ON IRANIAN OIL.

  (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the President shall submit to the appropriate 
congressional committees a report assessing the following:
          (1) Whether petroleum and petroleum products originating in 
        and exported from Iran are refined and sold outside of Iran.
          (2) Whether products that contain Iranian-origin petroleum or 
        petroleum products as part of their contents are imported into 
        the United States and, if any such products are imported into 
        the United States, whether such importation violates the ban on 
        importation into the United States of Iranian-origin petroleum 
        or petroleum products.
          (3) Whether it is feasible to ban the importation into the 
        United States of products described in paragraph (2), 
        regardless of whether the ban on importation into the United 
        States of Iranian-origin petroleum or petroleum products 
        applies to such products.
  (b) Basis of Report.--The report required under subsection (a) may be 
based on publicly-available information and classified information. The 
information that is not classified information shall be made publically 
available.
  (c) Appropriate Congressional Committees.--In this section, the term 
``appropriate congressional committees'' means--
          (1) the Committee on Foreign Affairs, the Committee on 
        Financial Services, and the Committee on Ways and Means of the 
        House of Representatives; and
          (2) the Committee on Foreign Relations, the Committee on 
        Banking, Housing, and Urban Affairs, and the Committee on 
        Finance of the Senate.

SEC. 404. GAO REPORT ON IRANIAN STRATEGY TO EVADE CURRENT SANCTIONS AND 
                    OTHER MATTERS.

  Not later than 90 days after the date of the enactment of this Act, 
the Comptroller General of the United States shall submit to Congress a 
report that--
          (1) evaluates the strategy of the Government of Iran to evade 
        current economic and financial sanctions; and
          (2) specifically evaluates the ability of Iran to 
        successfully diversify its economy beyond its energy sector, 
        thereby lessening the impact and effectiveness of economic and 
        financial sanctions.

SEC. 405. AUTHORITY TO CONSOLIDATE REPORTS REQUIRED UNDER IRAN 
                    SANCTIONS LAWS.

  (a) In General.--Any or all reports required to be submitted to 
Congress under the provisions of law described in subsection (c) on or 
after the date of the enactment of this Act may, notwithstanding the 
deadline requirements for submission under such provisions of law, be 
consolidated into a single report that is submitted to Congress on an 
annual basis.
  (b) Exception.--Subsection (a) shall not apply with respect to the 
initial report of any report described in subsection (a).
  (c) Provisions of Law Described.--The provisions of law referred to 
in this section are the following:
          (1) This Act and the amendments made by this Act.
          (2) The Iran Freedom and Counter-Proliferation Act of 2012 
        (22 U.S.C. 8801 et seq.).
          (3) The Iran Threat Reduction and Syria Human Rights Act of 
        2012 (22 U.S.C. 8701 et seq.).
          (4) The Comprehensive Iran Sanctions, Accountability, and 
        Divestment Act of 2010 (22 U.S.C. 8501 et seq.).

SEC. 406. AMENDMENTS TO DEFINITIONS UNDER IRAN SANCTIONS ACT OF 1996 
                    AND IRAN THREAT REDUCTION AND SYRIA HUMAN RIGHTS 
                    ACT OF 2012.

  (a) Iran Sanctions Act of 1996.--Section 14(4)(B) of the Iran 
Sanctions Act of 1996 (Public Law 104-172; 50 U.S.C. 1701 note) is 
amended by striking ``may include, in the discretion of the President'' 
and inserting ``includes''.
  (b) Iran Threat Reduction and Syria Human Rights Act of 2012.--
Section 211 of the Iran Threat Reduction and Syria Human Rights Act of 
2012 (22 U.S.C. 8721) is amended by adding at the end the following new 
subsection:
  ``(f) Definition.--In this section, the term `appropriate 
congressional committees' includes the Committee on Transportation and 
Infrastructure of the House of Representatives and the Committee on 
Commerce, Science, and Transportation of the Senate.''.

SEC. 407. IMPLEMENTATION; PENALTIES.

  (a) Implementation.--The President may exercise all authorities 
provided under sections 203 and 205 of the International Emergency 
Economic Powers Act (50 U.S.C. 1702 and 1704) to carry out this Act and 
the amendments made by this Act.
  (b) Penalties.--The penalties provided for in subsections (b) and (c) 
of section 206 of the International Emergency Economic Powers Act (50 
U.S.C. 1705) shall apply to a person that violates, attempts to 
violate, conspires to violate, or causes a violation of this Act or any 
amendment made by this Act or regulations prescribed under this Act to 
the same extent that such penalties apply to a person that commits an 
unlawful act described in section 206(a) of the International Emergency 
Economic Powers Act (50 U.S.C. 1705(a)).

SEC. 408. SEVERABILITY.

  (a) In General.--If any provision of this Act, or the application of 
such provision to any person or circumstance, is found to be 
unconstitutional, the remainder of this Act, or the application of that 
provision to other persons or circumstances, shall not be affected.
  (b) Effective Date Under Section 214.--If subsection (d) of section 
214 is found to be unconstitutional in accordance with subsection (a), 
the amendments made by such section 214 take effect on the date of the 
enactment of this Act and apply with respect to transactions entered 
into on or after such date of enactment.

                          Summary and Purpose

    H.R. 850, the Nuclear Iran Prevention Act of 2013 (NIPA), 
amends the Iran Sanctions Act of 1996, the Comprehensive Iran 
Sanctions, Accountability and Divestiture Act of 2010, the Iran 
Threat Reduction Act of 2012, and relevant components of the 
National Defense Authorization Act for Fiscal Year 2012 and the 
National Defense Authorization Act for Fiscal Year 2013 to 
provide additional sanctions on Iran's energy, financial and 
related sectors. This legislation is a response to the evolving 
and urgent threat that Iran's current policies present to the 
national security interests of the United States and our 
allies.
    The purpose of the legislation is to compel the Government 
of Iran to verifiably suspend, and ultimately dismantle, its 
weapons-applicable nuclear program, including, but not limited 
to, the cessation of all uranium enrichment and plutonium-
related activities. Through the application of broad-based 
sanctions, it is also intended to deprive Iran of the resources 
it requires to develop other unconventional weapons and 
ballistic missiles, acquire destabilizing conventional weapons, 
support terrorism within the region and across the globe, and 
engage in the systematic suppression of the people of Iran.

                Background and Need for the Legislation

    Iran poses a significant and rapidly increasing threat to 
the United States and our allies in the Middle East and 
elsewhere. Preventing Iran from acquiring a nuclear weapons 
capability, and ending its support for international terrorism 
are vital U.S. national security interests. This legislation 
restricts economic activity that supports the Government of 
Iran's pursuit of these activities by: Broadening economic 
sanctions; further targeting human rights violators; and 
increasing oversight of the implementation and enforcement of 
current sanctions--thereby pressuring the Iranian regime to 
cease its nuclear program.

Legislative Background

    Iran's economy, and Iran's ability to influence events, is 
heavily dependent on the revenue derived from crude oil, 
natural gas, and other energy-related exports. However, the 
Government of Iran has increasingly come to control entire 
segments of the Iranian economy, including considerable 
domestic and international business interests, and as a result, 
has gained access to new streams of revenue. In response, the 
focus of congressional action has evolved from targeted to more 
broadly-based sanctions.
    NIPA is the latest component of a longstanding legislative 
effort to tighten sanctions on foreign companies doing 
significant business with Iran, in order to compel the 
Government of Iran to verifiably cease and dismantle its 
efforts to develop a nuclear weapons capability, as well as 
halt its other dangerous activities and policies. This goal was 
first embodied in the Iran and Libya Sanctions Act of 1996, 
P.L. 104-172 (ILSA, now referred to as the Iran Sanctions Act, 
or ISA), which was enacted in 1996 for a five-year period and 
has been extended three times--in 2001, 2006 and 2012--for 
additional five-year periods. On August 3, 2001, President 
George W. Bush signed into law the ILSA Extension Act of 2001 
(P.L. 107-24). In September 2006, to further strengthen 
sanctions targeting foreign investment in Iran's energy sector, 
Congress passed the Iran Freedom Support Act (IFSA), a bill 
subsequently signed into law (P.L. 109-293) by President George 
W. Bush. Among other provisions, IFSA strengthened sanctions 
under ISA, including by raising the waiver threshold for 
investment in the energy sector, enlarging the scope of those 
who might be subject to sanctions.
    In 2009, the House passed H.R. 2194, the Iran Refined 
Petroleum Sanctions Act, which later became the Comprehensive 
Iran Sanctions, Accountability, and Divestment Act of 2010 
(P.L. 111-195) (CISADA). Among other critical provisions, 
CISADA mandated investigations into possible ISA violations; 
created third-party sanctions for financial institutions 
facilitating transactions supporting the nuclear weapons 
program or terrorism; provided for robust financial sector, 
refined petroleum-focused, and human rights abuser sanctions; 
provided a legal framework by which U.S. states, local 
governments, and certain other investors can divest their 
portfolios of foreign companies involved in Iran's energy 
sector; and established a mechanism to address concerns about 
diversion of sensitive technologies to Iran through other 
countries.
    Section 1245 of the FY 2012 National Defense Authorization 
Act increased efforts to sanction Iran by specifically 
targeting the Central Bank of Iran. This provision of law 
prohibited a foreign bank from opening an account in the United 
States--or imposed strict limitations on existing U.S. 
accounts--if that bank processed payments through Iran's 
Central Bank. It contained an exemption for Central Bank 
transactions if a country significantly reduced its oil 
purchases. Within this context, foreign banks could be granted 
an exemption from sanctions (for any transactions with the 
Central Bank, not just for oil) if the President certified that 
the parent country of the bank had significantly reduced its 
purchases of oil from Iran. That determination is to be 
reviewed every 180 days. For countries whose banks receive an 
exemption, the 180 day time frame begins from the time that 
parent country last received an exemption.
    In the 112th Congress, the Iran Threat Reduction and Syria 
Human Rights Act of 2012 (P.L. 112-158) applied sanctions to 
the shipping of Iranian crude oil, and enhanced human rights-
related provisions of previous Iran-related laws. A provision 
of the FY2013 National Defense Authorization Act (P.L. 112-239) 
sanctioned transactions with any entity in several key sectors 
of Iran's economy, and imposed a blanket prohibition on the 
transfer of precious metals to Iran.
    U.S. bilateral sanctions, combined with other national and 
multilateral sanctions, have adversely impacted Iran's economy, 
and particularly its exports of crude oil, which comprise about 
70 percent of the Iranian government's revenues. Iranian oil 
exports have now declined to about 1.25 million barrels per 
day--half of the 2.5 million barrels per day that Iran exported 
in 2011. This drop has been attributed to a European Union 
embargo on purchases of Iranian crude oil, which took full 
effect on July 1, 2012, and decisions by several other Iranian 
oil customers to substantially reduce purchases of Iranian oil. 
The loss of hard currency revenues from oil, coupled with the 
cut-off of Iran from the international banking system, has 
caused a collapse in the value of Iran's currency. Within this 
context, it has been reported that the Central Bank of Iran is 
attempting to utilize its remaining foreign exchange reserves 
to prevent a further deterioration in Iran's balance of 
payments from turning into a full-blown economic and financial 
crisis. United States sanctions are limiting Iran's ability to 
earn additional hard currency, including through the 
strengthening and refining of sanctions against the Central 
Bank.

Iran's Nuclear Program

    Notwithstanding the costs imposed on Iran by the sanctions 
to date, Tehran continues to make rapid progress on its nuclear 
weapons program. The International Atomic Energy Agency's 
(IAEA) report on the Iranian nuclear program, issued in 
February 2013, confirms that the development of Iran's program 
has continued apace. Iran has two known uranium enrichment 
facilities--one at Natanz and the other at Fordow. At the 
Natanz Fuel Enrichment Plant, Iran has continued to install 
large numbers of IR-1 and the more advanced IR-2 centrifuges, 
as confirmed by both the February and May 2013 IAEA reports. 
The potential output of the IR-2m is estimated to be 2 to 5 
times that of the IR-1, but their actual capabilities are not 
known due to Iranian modifications of the original European 
design, manufacturing limitations, and the IAEA's lack of 
access to them. In early March 2013, the head of Iran's Atomic 
Energy Organization announced that Iran would begin mass 
producing these advanced centrifuges and that 3000 would be 
available in ``the near future.'' Iran's ability to build, 
install, and operate these complex machines is unknown.
    The Fordow uranium enrichment facility is located deep 
below a mountain near the city of Qom. This location is 
presumably designed to protect the plant from a military 
strike. The IAEA's February 2013 report stated that Iran has 
installed approximately 2,700 IR-1 centrifuges at Fordow, which 
is close to its design capacity of 3000. The nearly 700 
centrifuges in operation are enriching uranium to the 20% 
level. Iran began construction of the facility in 2006, and 
only disclosed its existence after U.S. and other Western 
intelligence services submitted evidence of it to the IAEA in 
2009. By constructing the plant in secret, Iran violated its 
IAEA safeguards agreement, which requires it to declare all 
nuclear facilities, including plans to construct new ones.
    Iran has also continued construction work on its heavy-
water reactor at Arak and has told the IAEA that it will begin 
operation in early 2014. The nearby heavy-water production 
plant is already in operation. Iran claims that the reactor is 
intended to produce isotopes for medical use, but the reactor's 
spent uranium fuel will contain plutonium that can be separated 
out through reprocessing and used for nuclear weapons. Iran 
refuses to provide the IAEA with information about the reactor 
or allow its inspectors access. The UN Security Council has 
demanded that Iran stop construction of the reactor, but Iran 
has not complied.
    Iran continues to stonewall the IAEA regarding its work on 
a nuclear explosive device that was first made public in the 
IAEA's November 2011 report. Iran continues to deny the IAEA 
access to the Parchin military site, where it is believed to 
have conducted high-explosive tests regarding nuclear weapons. 
Since the site was first reported, Iran has demolished or 
significantly altered buildings there and removed large 
quantities of soil, apparently to eliminate all traces of 
clandestine work.
    While public estimates with respect to Iran's ability to 
acquire a nuclear weapons capability, breakout nuclear weapons 
capabilities or ``undetectable breakout'' capabilities vary, it 
is clear that the Iranians are making rapid progress towards 
acquiring such capabilities.

Iran's International Activities

    Iran's foreign policy objective continues to be to overturn 
the current power structure in the Middle East, which Iran 
believes favors the United States, Israel, and their 
``collaborators,'' including Egypt, Jordan, and the Gulf 
states. On March 5, 2013, the outgoing commander of U.S. 
Central Command, Gen. James Mattis, testified that ``Iran 
remains the single most significant regional threat to 
stability and prosperity.'' Iran actively supports a number of 
terrorist organizations, and was placed on the U.S. list of 
state sponsors of terrorism in January 1984. Iran's powerful 
militia, the Islamic Revolutionary Guards Force (``IRGC''), 
pursues a destructive foreign policy agenda through its Quds 
Force. The Quds Force consists of approximately 10,000-15,000 
personnel who provide advice, support, and arrange weapons 
deliveries to pro-Iranian factions in Syria, Lebanon, Iraq, 
Persian Gulf states, the West Bank and Gaza, Afghanistan, and 
Central Asia. Chief among these parties is Hezbollah, Iran's 
Lebanon-based ally.
    In 2012, there were several Iranian-sponsored attempts to 
attack Israeli diplomats and citizens in regions near and far. 
Bulgarian officials have indicated that Hezbollah was 
responsible for a July 19, 2012, terrorist bombing in Burgas, 
Bulgaria that killed five Israeli tourists and one Bulgarian. 
India reportedly has concluded that the Quds Force was 
responsible for wounding the wife of an Israeli diplomat in an 
attack in Delhi in February 2012. Other alleged Iranian plots 
against Israeli and other targets were reported in 2012 in 
Thailand, Georgia, Azerbaijan, Cyprus, and Kenya. According to 
the U.S. Department of Justice, Iran plotted to assassinate a 
Saudi Diplomat in Washington, DC in 2011. The State 
Department's Country Reports on Terrorism 2012 stated that 
``Iran increased its terrorist-related activity, including 
attacks or attempted attacks in India, Thailand, Georgia, and 
Kenya. Iran provided financial, material, and logistical 
support for terrorist and militant groups in the Middle East 
and Central Asia.''
    Lebanese Hezbollah is Iran's chief protege movement in the 
region. Iran's political, financial, and military aid to 
Hezbollah has helped it become a major force in Lebanon's 
politics. Iran is now facilitating Hezbollah's intervention in 
Syria against the Syrian armed opposition with significant 
financial and logistical assistance, a fact openly admitted by 
Hezbollah Secretary General Hassan Nasrallah on April 30, 2013. 
Iran also continues to provide substantial material support to 
the Syrian regime of President Bashar al-Assad, including 
funds, weapons, and fighters. Syria remains Iran's closest Arab 
ally, and the main transit point for Iranian weapons shipments 
to Hezbollah.
    Iran was Hezbollah's major arms supplier during the 
Lebanese militia's July-August 2006 war with Israel. Since that 
conflict, Iran has resupplied Hezbollah with at least 25,000 
new rockets, and press reports in early 2010 indicated that 
Hezbollah maintains a wide network of arms and missile caches 
around Lebanon.
    Iran exercises influence in Iraq through Shiite factions 
and militias, particularly that of Shiite cleric Moqtada Al 
Sadr. Iraq reportedly has allowed Iran to overfly Iraqi 
airspace with cargo flights to supply the Syrian military in 
its battle against armed dissidents. In addition, Yemeni 
leaders have long claimed that Iran has tried to destabilize 
Yemen. The U.N. Panel of Experts that is monitoring Iran's 
compliance with sanctions reportedly has found that Yemen-based 
militants are receiving arms from Iran.

Negotiations

    Led by the five Permanent Members of the U.N. Security 
Council plus Germany (P5+1), multiple rounds of multilateral 
talks with Iran have yielded no breakthroughs. However, three 
rounds of talks in 2012 did explore a potential compromise, 
under which Iran might cease enriching uranium to 20% purity (a 
level not technically far from weapons grade) in exchange for 
modest sanctions relief.
    During the Baghdad talks in May 2012, the P5+1 reportedly 
proposed that Iran halt enrichment to the 20% level; allow 
removal from Iran of the existing stockpile of 20% enriched 
uranium; eventually close the Fordow facility; accept a 
comprehensive verification regime to ensure that Iran fulfills 
any commitments made; and clear up reputed past efforts to 
design a nuclear explosive device, including allowing 
inspections of Parchin and other facilities.
    In return, the P5+1 would reportedly allow Iran, at least 
in the interim, to enrich uranium to the 3.5%-5% level; offer 
Iran a guaranteed supply of medical isotopes that it says it 
needs, and technical assistance to ensure the safety of its 
civilian nuclear facilities; and offer Iran spare parts for its 
civilian passenger aircraft. However, the P5+1 reportedly did 
not offer to meet Iran's demand to recognize Iran's ``right'' 
to enrich uranium, or to halt the European Union embargo on 
Iran's oil.
    Further high-level talks took place on February 26-27, 2013 
and April 5-6, 2013, in Almaty, Kazakhstan. The P5+1 reportedly 
offered Iran additional concessions, including the ability to 
trade in gold, in exchange for reciprocal concessions on Iran's 
nuclear program, but no breakthroughs were achieved. On May 15, 
2013, EU foreign policy chief Catherine Ashton and Iran's chief 
nuclear negotiator Saeed Jalilli had a further meeting to 
assess the prospects for a further round of talks, but once 
again, the talks were unproductive.
    The Committee is concerned that Iran is exploiting the 
negotiations to continue their efforts to acquire a nuclear 
weapons capability, similar to the course successfully pursued 
by North Korea. While we continue to support a diplomatic 
resolution of the Iranian nuclear situation, it is clear that 
negotiations have not yet achieved the desired result. As a 
result, the Committee believes we must impose additional, 
tougher sanctions to compel Iran to cease and verifiably 
dismantle its nuclear weapons program, and to deny Iran the 
resources required to pursue its destructive policies.

The Nuclear Iran Prevention Act

    Among other provisions, H.R. 850 strengthens existing 
sanctions by compelling countries that are currently purchasing 
crude oil from Iran to reduce their combined purchases of 
Iranian crude oil by a total of 1,000,000 barrels per day 
within a year. By taking 1,000,000 barrels per day of Iranian 
crude oil off of the market within a year (with safeguards to 
ensure that international oil markets can withstand such a 
reduction), the Iranian regime would continue to lose the long-
term funding that it requires to pay for its nuclear program, 
ballistic missiles, and sponsorship of terrorism.
    The legislation also penalizes foreign persons who engage 
in significant commercial trade with Iran. This would use the 
same model--targeting transactions through the Central Bank or 
a designated Iranian bank--that has successfully curtailed 
Iran's oil trade over the past year.
    In addition, NIPA expands the list of sectors of the 
Iranian economy that are effectively blacklisted, and provides 
the President the tools to add additional sectors of strategic 
importance to the Government of Iran. It works to limit Iran's 
access to overseas foreign currency reserves and imposes 
additional shipping sanctions to limit the ability of the 
regime to engage in international commerce.
    The bill also takes steps to protect the human rights of 
the Iranian people by applying the financial sector sanctions 
in existing law to transactions involving:

        
  human rights violators;
        
  persons transferring technologies to Iran 
        that are likely to be used to commit human rights 
        abuses;
        
  persons who engage in censorship or related 
        activities against citizens of Iran, and corrupt 
        officials that confiscate humanitarian and other goods 
        for their own benefit; and
        
  persons exporting sensitive technology to 
        Iran.

    Finally, H.R. 850 requires that the Administration produce 
annually a national strategy on Iran highlighting Iranian 
capabilities and key vulnerabilities that the United States may 
exploit, providing the United States Government a roadmap as to 
how to effectively address the Iranian threat.

                                Hearings

    During the present Congress, the Committee has continued 
its active oversight regarding Iran, including multiple 
hearings related to the content of H.R. 850, such as:

          May 15, 2013, full Committee hearing on ``Preventing 
        a Nuclear Iran'' (Hon. Wendy R. Sherman, Under 
        Secretary for Political Affairs, U.S. Department of 
        State; Hon. David S. Cohen, Under Secretary for 
        Terrorism and Financial Intelligence, U.S. Department 
        of the Treasury);
          April 24, 2013, full Committee hearing on ``Export 
        Control Reform: The Agenda Ahead'' (Mr. Thomas Kelly, 
        Acting Assistant Secretary, Bureau of Political-
        Military Affairs, U.S. Department of State; Hon. Kevin 
        J. Wolf, Assistant Secretary of Commerce for Export 
        Administration, Bureau of Industry and Security, U.S. 
        Department of Commerce; Mr. James A. Hursch, Director, 
        Defense Technology Security Administration, U.S. 
        Department of Defense); and
          April 11, 2013, joint subcommittee hearing (Middle 
        East and North Africa; Terrorism, Nonproliferation, and 
        Trade; Asia and the Pacific) on ``Breaking the Iran, 
        North Korea, and Syria Nexus'' (The Honorable R. James 
        Woolsey, Chairman, Foundation for Defense of 
        Democracies (former Director of the Central 
        Intelligence Agency); Mr. Henry D. Sokolski, Executive 
        Director, Nonproliferation Policy Education Center 
        (former Deputy for Nonproliferation Policy, U.S. 
        Department of Defense); Mr. David Albright, Founder and 
        President, Institute for Science and International 
        Security; Ray Takeyh, Ph.D., Senior Fellow for Middle 
        Eastern Studies, Council on Foreign Relations).

                        Committee Consideration

    On May 22, 2013, the Foreign Affairs Committee marked up 
the bill, H.R. 850, pursuant to notice, in open session. An 
amendment in the nature of a substitute, offered by the 
Chairman, and 27 other amendments (21 of which were considered 
en bloc) were agreed to in separate voice votes. The bill, as 
amended, was agreed to by voice vote.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of House Rule XIII, the 
Committee reports that the findings and recommendations of the 
Committee, based on oversight activities under clause 2(b)(1) 
of House Rule X, are incorporated in the descriptive portions 
of this report, particularly the ``Background and Purpose'' and 
``Section-by-Section Analysis'' sections.

      New Budget Authority, Tax Expenditures, and Federal Mandates

    In compliance with clause 3(c)(2) of House Rule XIII and 
the Unfunded Mandates Reform Act (P.L. 104-4), the Committee 
adopts as its own the estimate of new budget authority, 
entitlement authority, tax expenditures or revenues, and 
Federal mandates contained in the cost estimate prepared by the 
Director of the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974.

               Congressional Budget Office Cost Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 28, 2013.

Hon. Edward R. Royce, Chairman,
Committee on Foreign Affairs,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 850, the Nuclear 
Iran Prevention Act of 2013.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Sunita 
D'Monte, who can be reached at 226-2840.
            Sincerely,
                                      Douglas W. Elmendorf.
Enclosure

cc:
        Honorable Eliot L. Engel
        Ranking Member

H.R. 850--Nuclear Iran Prevention Act of 2013.

    As ordered reported by the House Committee on Foreign 
Affairs on May 22, 2013.
    H.R. 850 would amend and expand existing sanctions against 
Iran. CBO estimates that implementing the bill would have 
discretionary costs of about $22 million over the 2014-2018 
period, assuming appropriation of the estimated amounts. Pay-
as-you-go procedures apply to this legislation because it would 
affect direct spending and revenues; however, CBO estimates 
that those effects would not be significant.
    The estimated budgetary impact of H.R. 850 is shown in the 
following table. The costs of this legislation fall primarily 
within budget functions 150 (international affairs), 400 
(transportation), and 800 (general government).

                                     By Fiscal Year, in Millions of Dollars
----------------------------------------------------------------------------------------------------------------
                                                            2014     2015     2016     2017     2018   2014-2018
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
 
Estimated Authorization Level                                   5        5        5        5        5        25
Estimated Outlays                                               3        4        5        5        5        22
----------------------------------------------------------------------------------------------------------------

    Several provisions of H.R. 850 would increase 
administrative costs of the Department of State, the Department 
of the Treasury, and the Department of Transportation. CBO's 
estimate of the bill's costs is based on information from those 
agencies.
    Sanctions required under H.R. 850 would probably increase 
the number of people who would be denied a visa by the 
Secretary of State. Most visa fees are retained by the 
department and spent without further appropriation, but some 
fees are deposited in the Treasury as revenues. CBO estimates 
that implementing those sanction provisions would affect very 
few people and, thus, have an insignificant budgetary effect.
    Because the bill would expand the types of prohibited 
activities involving Iran that are subject to civil and 
criminal penalties under current law, it could increase 
revenues and direct spending from the collection of those 
penalties; however, CBO estimates that the net budgetary effect 
of any additional penalties would be negligible for each year.
    By expanding existing prohibitions on transactions with 
persons or entities associated with the government of Iran, and 
increasing the number of entities responsible for complying 
with those prohibitions, the bill would impose both 
intergovernmental and private-sector mandates as defined in the 
Unfunded Mandates Reform Act (UMRA). The bill would modify 
certain existing financial transactions, prohibit the 
importation of goods or services from sanctioned entities, and 
ban activities that may aid in Iran's mining or milling of 
uranium.
    Individuals and entities engaged in ongoing transactions 
with potentially sanctioned entities could be required to 
terminate such transactions based on new requirements outlined 
in the bill. Because the number of private and public entities 
engaged in those transactions is probably very small, CBO 
expects that the estimated costs of the intergovernmental and 
private-sector mandates in H.R. 850 would fall below the annual 
thresholds established in UMRA ($75 million for 
intergovernmental mandates and $150 million for private-sector 
mandates in 2013, adjusted annually for inflation).
    The CBO staff contacts for this estimate are Sunita 
D'Monte, Pamela Greene, Matthew Pickford, and Sarah Puro (for 
federal costs), J'nell Blanco (for the intergovernmental 
impact), and Marin Burnett (for the private-sector impact). 
This estimate was approved by Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                          Directed Rule Making

    Pursuant to clause 3(c) of House Rule XIII, as modified by 
section 3(k) of H.Res. 5 during the 113th Congress, the 
Committee notes that H.R. 850 contains one provision (section 
101(c), as reported) requiring that the Secretary of the 
Treasury prescribe regulations to carry out the amendments to 
existing financial institution sanctions made by section 101(a) 
of the bill.

                  Non-Duplication of Federal Programs

    Pursuant to clause 3(c) of House Rule XIII, as modified by 
section 3(j)(2) of H.Res. 5 during the 113th Congress, the 
Committee states that H.R. 850 does not establish or 
reauthorize a program of the Federal Government known to be 
duplicative of another Federal Program, and does not include 
any program listed in any report from the Government 
Accountability Office pursuant to section 21 of Public Law 111-
139, or any program related to those listed in the most recent 
Catalog of Federal Domestic Assistance.

                    Performance Goals and Objectives

    The Act is intended to deprive Iran of the resources it 
requires to develop a nuclear weapons capability and produce 
nuclear weapons; develop other unconventional weapons and 
ballistic missiles; acquire destabilizing conventional weapons; 
support terrorism within the region and across the globe; and 
engage in the systematic suppression of the people of Iran. The 
diplomatic objective is to reach a negotiated settlement in 
which Iran agrees to verifiably dismantle its nuclear weapons 
program. Performance goals associated with these objectives 
include, but are not limited to the following:

        
  A verifiable decrease in Iran's ability to 
        fund its uranium enrichment, plutonium-related, and 
        other activities related to Iran's efforts to acquire a 
        nuclear weapons capability.
        
  The cessation and verifiable dismantlement of 
        programs associated with Iran's efforts to develop a 
        nuclear weapons capability.
        
  A verifiable decrease in Iran's ability to 
        fund its unconventional weapons programs, ballistic 
        missiles and related technology programs, acquisition 
        of destabilizing types and amounts of conventional 
        weapons, and support for international terrorism.
        
  A verifiable cessation in Iran's 
        unconventional weapons programs, ballistic missiles and 
        related technology programs, and support for 
        international terrorism.

                    Congressional Accountability Act

    H.R. 850 does not apply to the Legislative Branch.

                        New Advisory Committees

    H.R. 850 does not establish or authorize any new advisory 
committees.

                         Earmark Identification

    H.R. 850 contains no congressional earmarks, limited tax 
benefits, or limited tariff benefits as defined in clauses 
9(e), 9(f), and 9(g) of House Rule XXI.

                        Letters of Jurisdiction

<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>

                              ----------                              

<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>

                      Section-by-Section Analysis

    Section 1. Short Title and Table of Contents. The short 
title of this Act is the Nuclear Iran Prevention Act of 2013.
    Section 2. Findings and Statement of Policy.

             TITLE I--HUMAN RIGHTS AND TERRORISM SANCTIONS.

    Section 101. Mandatory sanctions with respect to financial 
institutions that engage in certain transactions on behalf of 
persons involved in human rights abuses or that export 
sensitive technology to Iran. Current law sanctions foreign 
financial institutions that conduct transactions that aid 
Iran's proliferation or support for terrorism. This provision 
adds transactions for human rights abusers to the list of 
sanctionable activities, to include the original designation 
for human rights violators, those persons involved in the 
transfer of goods and services to the Government of Iran likely 
to be used to commit human rights abuses, those who engage in 
censorship and related activities, and those engaged in the 
diversion of goods intended for the people of Iran. It also 
applies CISADA financial sanctions to persons sanctioned for 
exporting sensitive technology to Iran.
    Section 102. Prevention of diversion of certain goods, 
services and technologies to Iran. This provision broadens the 
evidentiary standard for the criteria applied to a person that 
provides goods, services and technology to Iran that may aid 
its nuclear weapons program, its ballistic missile and 
unconventional weapons development programs, procurement of 
advanced conventional weapons, and support for international 
terrorism. It also expands the scope of sanctionable transfers 
and authorizes the President to impose IEEPA sanctions against 
violators. Though this provision, the Committee intends to 
strengthen the underlying provision regarding countries of 
diversion concern, which the Administration has not fully 
implemented.
    Section 103. Designation of Iran's Revolutionary Guard 
Corps as foreign terrorist organization. Section 101 requires 
the Secretary of State to make a determination as to whether 
the IRGC is a foreign terrorist organization. Assuming a 
positive determination, the President imposes additional 
sanctions. The IRGC is not only involved in Iran's WMD programs 
but it is also the key instrument through which the regime has 
suppressed the pro-democracy movement. Recent reports of IRGC 
involvement in terrorist operations from Southeast Asia to the 
Middle East underscore the threat. The bill as reported 
includes language requiring the Administration to apply the 
sanctions under the Immigration and Nationality Act to the IRGC 
Quds Force. While the Committee recognizes the expansive nature 
of current sanctions imposed against the IRGC, given the role 
that the totality of the IRGC command structure plays in 
ordering, facilitating or otherwise supporting terrorist 
attacks against the United States and our allies, the Committee 
wants to ensure that the IRGC is held to account.
    Section 104. Imposition of sanctions on certain persons 
responsible for or complicit in human rights abuses, engaging 
in censorship, or engaging in the diversion of goods intended 
for the people of Iran. This section expands and updates 
current-law regarding Iranian human rights abusers. First, it 
expands the list of reportable offenses from human rights 
abuses to censorship and related activities, and the diversion 
of goods destined for the people of Iran by the government. 
Second, it expands the list of persons that the Administration 
must report on. The intent is to encourage the Administration 
to designate high-ranking Iranian government officials for all 
associated violations. Currently, the report is limited to 
human rights abusers only and a very narrow sample of the 
Iranian government.
    Section 105. Sense of Congress on elections in Iran. This 
provision states that it is the sense of Congress that the 
Iranian people are denied by their government of free, fair and 
transparent elections. It also supports allowing independent 
international and domestic election observers into Iran for 
their elections. The Committee believes that the elections in 
Iran, rather than being free and fair, have been utilized by 
the governing elite to cement their rule over the Iranian 
people.
    Section 106. Sense of Congress on designation of a Special 
Coordinator for advancing human rights and political 
participation for women in Iran. This provision supports the 
appointment of a Special Coordinator within the Bureau of Near 
Eastern Affairs to advance human rights and political 
participation for women, as well as to prepare evidence and 
information to be used in identifying Iranian officials for 
designation as human rights abusers.

               TITLE II--ECONOMIC AND FINANCIAL SANCTIONS

Subtitle A--Amendments to Iran Sanctions Act of 1996

    Section 201. Imposition of sanctions relating to 
transportation of crude oil from Iran and certain imports and 
exports to and from Iran. This section amends prohibitions on 
shipping sanctions with the Iran Sanctions Act to prohibit the 
transfer and retransfer of vessels to the Government of Iran 
for the purposes of crude oil transportation. Thus, it further 
restricts the ability of the Government of Iran to acquire 
ships for its sanctioned fleets. This provision builds upon the 
sanctions in Sec. 208 in rendering sanctionable ship-to-ship 
transfers of crude oil transported from Iran, and knowingly 
transporting of goods that are subject to U.S. sanctions law.
    Section 202. Transfer to Iran of goods, services, or 
technology that would materially contribute to Iran's ability 
to mine or mill uranium. This provision adds the transfer of 
goods, services and technology that can be used for uranium 
mining and milling to the list of activities sanctionable under 
Section 5(b)--mandatory WMD sanctions--of the Iran Sanctions 
Act. Iran is believed to have significant reserves of uranium 
in different areas of the country, and this specific provision 
denies them the wherewithal to domestically develop those 
deposits for use in their nuclear program.
    Section 203. Repeal of waiver of sanctions relating to 
development of weapons of mass destruction or other military 
capabilities. This provision strikes the waiver authority in 
Section 9(c) of the Iran Sanction Act, which applies to 
sanctions against persons who aid Iran's WMD program under 
subsection 5(b) of the Iran Sanctions Act. The Administration 
has yet to apply sanctions under this subsection, despite the 
fact that it is not discretionary, and has been law since 2006.

Subtitle B--Amendments to Comprehensive Iran Sanctions, Accountability, 
        and Divestment Act of 2010 and Iran Threat Reduction and Syria 
        Human Rights Act of 2012

    Section 211. Modifications to prohibition on procurement 
contracts with persons that export sensitive technology to 
Iran. This provision amends Sec. 106 of CISADA, which sanctions 
persons that export sensitive technology to Iran. Under current 
law, the only sanction applicable is a procurement sanction. 
Sec. 101 of this Act imposes financial sanctions against such a 
person, and this provision applies the range of sanctions under 
the Iran Sanctions Act to such a person. Additionally, this 
section broadens the scope of the applicability to persons 
owned or controlled by a person that provides such technology.
    Section 212. Authority of State and local governments to 
avoid exposure to sanctioned persons and sectors. This 
provision builds on state-based divestment campaigns. It 
includes a Sense of Congress to support state efforts to divest 
assets, prohibit licenses, and impose transparency and 
disclosure requirements. It brings state efforts in line with 
Federal efforts to divest from additional designated sectors. 
It also provides states and local governments Federal 
protection for prohibiting business licenses for such entities.
    Section 213. Sense of Congress regarding the European 
Central Bank. Through financial sanctions, the United States 
has blocked Iran from readily accessing U.S. dollars. 
Similarly, European sanctions are designed in part to restrict 
Iran's access to the euro. However, there are concerns that 
legal challenges in Europe to its current sanctions regime may 
change that. Others point to the ability of Iran to use 
overseas financial institutions to access foreign currency 
reserves and convert them into euros as a loophole that should 
be addressed. In response, this provision calls on the 
Administration to work closely with our European allies to work 
toward ceasing euro-denominated transactions, thereby denying 
the Iranian regime additional hard currency.
    Section 214. Imposition of sanctions with respect to 
certain transactions in foreign currencies. This section seeks 
to prohibit conversion of foreign currency and repatriation of 
accounts held by the Government of Iran outside of the accounts 
authorized in current law that allow for the licit trade of 
Iranian crude oil. For example, if the Iranian government held 
an account in euros or another convertible currency in a 
Chinese bank, this section would crack down on the Government 
of Iran's ability to convert that account from a convertible 
currency to a locally-denominated currency through the 
respective central bank's clearing mechanisms. The objective is 
to further enable the Administration to render Iran's foreign 
exchange reserves overseas inaccessible.
    Section 215. Sanctions with respect to certain transactions 
with Iran. This provision is modeled on the current sanctions 
against the Central Bank of Iran in Sec. 1245 of the FY12 NDAA. 
It authorizes the President (pursuant to IEEPA) to sanction 
foreign persons conducting non-oil, international trade with 
Iran through the Central Bank of Iran, or other designated 
Iranian financial institutions, unless the host country's 
overall level of non-oil trade with Iran is significantly 
reducing over succeeding 180 day periods.

Subtitle C--Other matters

    Section 221. Imposition of sanctions with respect to the 
Central Bank of Iran and other Iranian financial institutions. 
This provision expands and tightens the current sanctions 
against the Central Bank of Iran for oil purchases (Sec. 1245 
of the FY12 NDAA). It requires that one year after enactment, 
that the remaining countries purchasing Iranian oil must have 
reduced their purchases by 1 million barrels per day in 
aggregate or risk losing their ability to obtain ``significant 
reduction'' exemptions'' to allow them to continue to purchase 
Iranian oil. The requirement is predicated on a Presidential 
finding that there is sufficient supply in the world energy 
markets to allow for such a reduction. The section also amends 
current law to ensure that third party transfers of Iranian 
crude oil are covered when the State Department is considering 
their ``significant reduction'' exemption. Finally, it amends 
the definition and standard for ``significant reductions'' to 
include both ``price and volume,'' and links the definition of 
``significant reduction'' to the decrease of 1 million barrels 
per day in the interim. To date, every importer of Iranian oil 
has received an exemption from this sanction, a trend 
concerning to the Committee given the wide fluctuation in terms 
of both volume and price that has allowed countries to qualify 
for a ``significant reduction.''
    Section 222. Imposition of sanctions with respect to ports, 
special economic zones, free economic zones, and strategic 
sectors of Iran. This section would expand the sector-based 
framework for the blacklisting of entire portions of the 
Iranian economy as adopted in the FY13 NDAA. These include the 
automotive and mining sectors of Iran, in addition to the 
construction and engineering sectors of the economy that are in 
anyway involved in those sectors. Additionally, it adds 
interaction with inland ports such as free economic zones and 
special economic zones to the list of prohibited activities. 
Finally, it would also give the Administration the ability to 
add additional sectors that the President deems are of 
``strategic importance.'' Combined, this is a critical step in 
targeting sectors of the Iranian economy that either support 
the Iranian elites or relevant to their ongoing efforts to 
acquire a nuclear weapons capability.
    Section 223. Report on determinations not to impose 
sanctions on persons who allegedly sell, supply, or transfer 
precious metals to or from Iran. This section amends Sec. 1245 
of the FY13 NDAA requiring the President to regularly report on 
those persons that have sold, supplied or transferred precious 
metals, directly or indirectly, to or from Iran, but have not 
been sanctioned under this section, and the reasoning for that 
determination.
    Section 224. Imposition of sanctions with respect to 
foreign financial institutions that facilitate financial 
transactions on behalf of persons owned or controlled by 
specially designated nationals. This provision strengthens the 
FY13 NDAA to require the President to designate all entities 
owned or controlled by Specially Designated Nationals as such 
and requiring the President to apply sanctions accordingly. The 
Iranians have tried to hide government-related assets through 
``privatizing'' industries, retaining a controlling stake. This 
would expand the ability of sanctions to target the economic 
assets of regime actors. It is also the opinion of the 
Committee that the President should make a determination under 
current law as to whether non-designated bonyads and other 
domestic and foreign investment authorities of Iran should be 
designated.
    Section 225. Repeal of exemptions under sanctions 
provisions of National Defense Authorization Act for Fiscal 
Year 2013. During the FY13 NDAA legislative process, a 
procedural issue led to the exclusion of the ``importation of 
goods'' as an applicable sanction with respect to the most 
important aspects of that sanctions effort. As a result, the 
FY13 NDAA sanctions have been weakened by this exclusion. 
Therefore, this provision seeks to correct that anomaly.
    Section 226. Termination of government contracts with 
persons who sell goods, services, or technology to, or conduct 
any other transaction with Iran. This section requires the 
modification to the Federal Acquisition Regulation (FAR) to 
prohibit any sanctionable activity--expanding it with respect 
to the current prohibitions in current law. It specifies that 
debarment or suspension from eligibility for Federal contracts 
should not last less than two years, and offers a case-by-case 
waiver if the President determines that doing so is essential 
to the national security interests of the United States.
    Section 227. Conditions for Entry and Operation of Vessels. 
Under this section, all Iranian vessels that are re-registered 
by another government, and all non-Iranian vessels operating on 
behalf of Iran would be targeted. If a registry allows an 
Iranian-owned or operated vessel to be registered, then all 
vessels under that country's registry are denied access to the 
United States.

 TITLE III--ADDITIONAL AUTHORITIES TO PREVENT CENSORSHIP ACTIVITIES IN 
                                  IRAN

    Section 301. Report on implementation of sanctions against 
the Islamic Republic of Iran Broadcasting. This section 
requires a report on the implementation of sanctions against 
the Islamic Republic of Iran Broadcasting (IRIB) to include 
entities that facilitate its operation by providing services or 
equipment, IRIB activities with respect to the broadcasting of 
forced confessions and hate speech, and jamming of foreign 
broadcasts.
    Section 302. List of persons who are high-risk re-exporters 
of sensitive technologies. This provision requires that the 
Administration provide a public list of persons who are high-
risk exporters that may provide sensitive technologies to Iran 
in order to seek to ensure that the Government of Iran is 
unable to obtain such technologies.
    Section 303. Sense of Congress on provision of intercept 
technologies to Iran. This section expresses the Sense of 
Congress that persons involved in providing intercept 
technologies that limit freedom of speech or expression should 
be held accountable and an existing contract with Iran is not a 
justification for continued repression and encourages the 
provision of certain consumer communication technologies.
    Section 304. Sense of Congress on availability of consumer 
communication technologies in Iran. This provision expresses 
the Sense of Congress that certain consumer communication 
technologies are available to the people of Iran and Iranian 
civil society in order to promote the free flow of information 
to Iran.
    Section 305. Expedited consideration of requests for 
authorization of transfer of goods and services to Iran to 
facilitate the ability of Iranian persons to freely 
communicate. This provision amends Section 413 of the Iran 
Threat Reduction Act to include certain technologies that 
promote the free flow of information as being eligible for 
expedited consideration for an OFAC license from Treasury. The 
Committee believes that, given the severity of the measures 
taken by Iran to engage in internet censorship, the licensing 
of such items must be a priority.

                  TITLE IV--REPORTS AND OTHER MATTERS

    Section 401. National Strategy on Iran. This provision 
requires that the Administration produce annually a national 
strategy on Iran highlighting Iranian capabilities and key 
vulnerabilities that the United States may exploit, providing 
the United States Government a roadmap as to how to effectively 
address the Iranian threat.
    Section 402. Report on Iranian nuclear and economic 
capabilities. This provision requires reporting on both the 
Iranian nuclear timetable and how long until the Iranian 
government experiences a debilitating economic event.
    Section 403. Report on plausibility of expanding sanctions 
on Iranian oil. This section requires a report on whether it is 
possible to ban the entry of products that contain Iranian-
origin petroleum and petroleum products as part of their 
content into the United States.
    Section 404. GAO report on Iranian strategy to evade 
current sanctions and other matters. This provision requires 
the Comptroller General to evaluate the strategy of the 
Government of Iran to evade current economic and financial 
sanctions, and also report on their efforts to diversify their 
economic base beyond the energy sector.
    Section 405. Authority to consolidate reports required 
under Iran sanctions laws. Given the wide array of reporting 
requirements, this provision allows the Administration 
consolidate and synchronize reporting requirements in existing 
law.
    Section 406. Amendments to definitions under Iran Sanctions 
Act of 1996 and Iran Threat Reduction and Syria Human Rights 
Act of 2012. This section adjusts the threshold for ``credible 
information'' within the Iran Sanctions Act investigative 
process to mandate that the President act on such information, 
rather than leaving it discretionary. It also adds the 
Committee on Transportation and Infrastructure to the Sec. 211 
reporting requirement in the Iran Threat Reduction Act.
    Section 407. Implementation; penalties. This provision 
provides the President the standard International Emergency 
Economic Powers Act authorities that are required to implement 
the provisions of this Act, inclusive of civil and criminal 
penalties under that Act.
    Section 408. Severability. This allows for the severability 
of provisions from the underlying legislation if they are found 
to be unconstitutional.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

  COMPREHENSIVE IRAN SANCTIONS, ACCOUNTABILITY, AND DIVESTMENT ACT OF 
                                  2010

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

     * * * * * * *

                           TITLE I--SANCTIONS

     * * * * * * *
[Sec. 106. Prohibition on procurement contracts with persons that export 
          sensitive technology to Iran.]
Sec. 106. Prohibition on procurement contracts with and imposition of 
          sanctions against persons that export sensitive technology to 
          Iran.

           *       *       *       *       *       *       *


TITLE I--SANCTIONS

           *       *       *       *       *       *       *


SEC. 104. MANDATORY SANCTIONS WITH RESPECT TO FINANCIAL INSTITUTIONS 
                    THAT ENGAGE IN CERTAIN TRANSACTIONS.

    (a) * * *

           *       *       *       *       *       *       *

    (c) Prohibitions and Conditions With Respect to Certain 
Accounts Held by Foreign Financial Institutions.--
            (1) * * *
            (2) Activities described.--A foreign financial 
        institution engages in an activity described in this 
        paragraph if the foreign financial institution--
                    (A) * * *

           *       *       *       *       *       *       *

                    (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) * * *
                            (ii) a person whose property or 
                        interests in property are blocked 
                        pursuant to that Act in connection 
                        with--
                                    (I) * * *
                                    (II) Iran's support for 
                                international terrorism[.]; or
                    (F) facilitates a significant transaction 
                or transactions or provides significant 
                financial services for--
                            (i) a person that is subject to 
                        sanctions under section 105(c), 
                        105A(c), 105B(c), or 105C(a); or
                            (ii) a person that exports 
                        sensitive technology to Iran and is 
                        subject to the prohibition on 
                        procurement contracts as described in 
                        section 106.

           *       *       *       *       *       *       *


SEC. 106. PROHIBITION ON PROCUREMENT CONTRACTS WITH AND IMPOSITION OF 
                    SANCTIONS AGAINST 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] goods or services--
            (1) with a person that exports sensitive technology 
        to Iran[.]; or
            (2) with respect to a person acting on behalf of or 
        at the direction of, or owned or controlled by, a 
        person described in paragraph (1) or a person who owns 
        or controls a person described in paragraph (1).

           *       *       *       *       *       *       *

    (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] has been designed or 
        specifically modified--
                    (A) * * *

           *       *       *       *       *       *       *

    (e) Presidential Determination and Imposition of Additional 
Sanctions.--The President shall impose 5 or more of the 
sanctions described in section 6(a) of the Iran Sanctions Act 
of 1996 (Public Law 104-172; 50 U.S.C. 1701 note) with respect 
to--
            (1) a person if the President determines that the 
        person knowingly exports sensitive technology to Iran; 
        or
            (2) a person acting on behalf of or at the 
        direction of, or owned or controlled by, a person 
        described in paragraph (1) or a person who owns or 
        controls a person described in paragraph (1).

           *       *       *       *       *       *       *


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

           *       *       *       *       *       *       *


SEC. 202. 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.]
    (a) Sense of Congress.--It is the sense of Congress that 
the United States should support the decision of any State or 
local government to divest from or prohibit the investment of 
assets of the State or local government, to prohibit the 
issuance of licenses to conduct business in the State or 
locality to, and to impose disclosure and transparency 
requirements on, a person that invests in or conducts 
transactions for or with a person or sector subject to 
sanctions with respect to Iran.
    (b) Authority.--Notwithstanding any other provision of law, 
a State or local government may adopt and enforce measures that 
meet the requirements of subsection (d)--
            (1) to divest the assets of the State or local 
        government from a person described in subsection (c);
            (2) to prohibit investment of the assets of the 
        State or local government in any such person;
            (3) to prohibit the issuance of licenses to conduct 
        business in the State or locality to any such person; 
        or
            (4) to impose disclosure and transparency 
        requirements on any such person.
    (c) Persons Described.--A person described in this 
subsection is a person that invests in or engages in any 
transaction with or for any person engaged in any activity for 
which sanctions may be imposed under any provision of Federal 
law imposing sanctions with respect to Iran.
    (d) Requirements.--Any measure taken by a State or local 
government under subsection (b) shall meet the following 
requirements:
            (1) * * *

           *       *       *       *       *       *       *

            (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)] is a person described 
        in subsection (c).

           *       *       *       *       *       *       *

    (f) Nonpreemption.--A measure of a State or local 
government authorized under subsection (b) [or (i)] or (g) 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) 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)] (g) 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.

           *       *       *       *       *       *       *

    [(j)] (h) Rule of Construction.--Nothing in this Act or any 
other provision of law authorizing sanctions with respect to 
Iran shall be construed to abridge the authority of a State to 
issue and enforce rules governing the safety, soundness, and 
solvency of a financial institution subject to its jurisdiction 
or the business of insurance pursuant to the Act of March 9, 
1945 (15 U.S.C. 1011 et seq.) (commonly known as the 
``McCarran-Ferguson Act'').

           *       *       *       *       *       *       *


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

SEC. 301. 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] knows, has reason to 
        know, or should have known that the territory of the 
        country is being used for such diversion.

           *       *       *       *       *       *       *


SEC. 302. IDENTIFICATION OF COUNTRIES OF CONCERN WITH RESPECT TO THE 
                    DIVERSION OF CERTAIN GOODS, SERVICES, AND 
                    TECHNOLOGIES TO OR THROUGH IRAN.

    (a) * * *
    (b) Goods, Services, and Technologies Described.--Goods, 
services, or technologies described in this subsection are 
goods, services, or technologies--
            (1) that--
                    (A) * * *

           *       *       *       *       *       *       *

                    (C) are--
                            (i) * * *
                            (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[.]; 
        or
            (3) that are--
                    (A) items described in the Nuclear 
                Suppliers Group Guidelines for the Export of 
                Nuclear Material, Equipment and Technology 
                (published by the International Atomic Energy 
                Agency as Information Circular INFCIRC/254/Rev. 
                3/Part 1, and subsequent revisions) and 
                Guidelines for Transfers of Nuclear-Related 
                Dual-Use Equipment, Material, and Related 
                Technology (published by the International 
                Atomic Energy Agency as Information Circular 
                INFCIRC/254/Rev. 3/Part 2, and subsequent 
                revisions);
                    (B) items on the Missile Technology Control 
                Regime Equipment and Technology Annex of June 
                11, 1996, and subsequent revisions;
                    (C) items and substances relating to 
                biological and chemical weapons the export of 
                which is controlled by the Australia Group;
                    (D) items on the Schedule One or Schedule 
                Two list of toxic chemicals and precursors the 
                export of which is controlled pursuant to the 
                Convention on the Prohibition of the 
                Development, Production, Stockpiling and Use of 
                Chemical Weapons and on Their Destruction; or
                    (E) items on the Wassenaar Arrangement list 
                of Dual Use Goods and Technologies and 
                Munitions list of July 12, 1996, and subsequent 
                revisions.

           *       *       *       *       *       *       *


SEC. 303. DESTINATIONS OF DIVERSION CONCERN.

    (a) * * *

           *       *       *       *       *       *       *

    (c) Licensing Requirement.--[Not later than]
            (1) In general.--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 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.
            (2) Additional measures.--The President may impose 
        restrictions on United States foreign assistance or 
        measures authorized under the International Emergency 
        Economic Powers Act with respect to a country 
        designated as a country of diversion concern if the 
        President determines such restrictions or measures 
        would prevent the transfer of United States-origin 
        goods, services, and technology to Iran.

           *       *       *       *       *       *       *

                              ----------                              


        IRAN THREAT REDUCTION AND SYRIA HUMAN RIGHTS ACT OF 2012

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

     * * * * * * *

 TITLE II--EXPANSION OF SANCTIONS RELATING TO THE ENERGY SECTOR OF IRAN 
        AND PROLIFERATION OF WEAPONS OF MASS DESTRUCTION BY IRAN

     * * * * * * *

   Subtitle B--Additional Measures Relating to Sanctions Against Iran

     * * * * * * *
Sec. 220A. Imposition of sanctions with respect to certain transactions 
          in foreign currencies.
     * * * * * * *
Sec. 225. Sanctions with respect to certain transactions with Iran.

  TITLE III--SANCTIONS WITH RESPECT TO IRAN'S REVOLUTIONARY GUARD CORPS

Subtitle A--Identification of, and Sanctions With Respect to, Officials, 
 Agents, Affiliates, and Supporters of Iran's Revolutionary Guard Corps 
                      and Other Sanctioned Persons

     * * * * * * *
[Sec. 304. Rule of construction.]
Sec. 304. Designation of Iran's Revolutionary Guard Corps as foreign 
          terrorist organization.
Sec. 305. Rule of construction.
     * * * * * * *

       TITLE IV--MEASURES RELATING TO HUMAN RIGHTS ABUSES IN IRAN

 Subtitle A--Expansion of Sanctions Relating to Human Rights Abuses in 
                                  Iran

[Sec. 401. Imposition of sanctions on certain persons 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. 401. Imposition of sanctions on certain persons responsible for or 
          complicit in human rights abuses, engaging in censorship, or 
          engaging in the diversion of goods intended for the people of 
          Iran.

           *       *       *       *       *       *       *


TITLE II--EXPANSION OF SANCTIONS RELATING TO THE ENERGY SECTOR OF IRAN 
AND PROLIFERATION OF WEAPONS OF MASS DESTRUCTION BY IRAN

           *       *       *       *       *       *       *


   Subtitle B--Additional Measures Relating to Sanctions Against Iran

SEC. 211. IMPOSITION OF SANCTIONS WITH RESPECT TO THE PROVISION OF 
                    VESSELS OR SHIPPING SERVICES TO TRANSPORT CERTAIN 
                    GOODS RELATED TO PROLIFERATION OR TERRORISM 
                    ACTIVITIES TO IRAN.

    (a) * * *

           *       *       *       *       *       *       *

    (f) Definition.--In this section, the term ``appropriate 
congressional committees'' includes the Committee on 
Transportation and Infrastructure of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate.

           *       *       *       *       *       *       *


SEC. 220A. IMPOSITION OF SANCTIONS WITH RESPECT TO CERTAIN TRANSACTIONS 
                    IN FOREIGN CURRENCIES.

    (a) In General.--The President--
            (1) shall prohibit the opening, and prohibit or 
        impose strict conditions on the maintaining, in the 
        United States of a correspondent account or a payable-
        through account by a foreign financial institution that 
        is a person described in subsection (b); and
            (2) may impose sanctions pursuant to the 
        International Emergency Economic Powers Act (50 U.S.C. 
        1701 et seq.) with respect to any other person 
        described in subsection (b).
    (b) Person Described.--A person described in this 
subsection is a person the President determines has--
            (1) knowingly conducted or facilitated a 
        significant transaction involving the currency of a 
        country other than the country in which the person is 
        operating at the time of the transaction with, for, or 
        on behalf of--
                    (A) the Central Bank of Iran or another 
                Iranian financial institution designated by the 
                Secretary of the Treasury for the imposition of 
                sanctions pursuant to the International 
                Emergency Economic Powers Act (50 U.S.C. 1701 
                et seq.); or
                    (B) a person described in section 
                1244(c)(2) of the Iran Freedom and Counter-
                Proliferation Act (22 U.S.C. 8803(c)(2)) (other 
                than a person described in subparagraph 
                (C)(iii) of that section); or
            (2) knowingly conducted or facilitated a 
        significant transaction by another person involving the 
        currency of a country other than the country in which 
        that other person is operating at the time of the 
        transaction, with, for, or on behalf of a person 
        described in subparagraph (A) or (B) of paragraph (1).
    (c) Waiver.--
            (1) In general.--The President may waive the 
        application of subsection (a) with respect to a person 
        for a period of not more than 180 days, and may renew 
        that waiver for additional periods of not more than 180 
        days, if the President--
                    (A) determines that the waiver is vital to 
                the national security of the United States; and
                    (B) not less than 7 days before the waiver 
                or the renewal of the waiver, as the case may 
                be, takes effect, submits a report to the 
                appropriate congressional committees on the 
                waiver and the reason for the waiver.
            (2) Form of report.--Each report submitted under 
        paragraph (1)(B) shall be submitted in unclassified 
        form but may include a classified annex.
    (d) Rule of Construction.--Nothing in this section shall be 
construed to prohibit any person from, or authorize or require 
the imposition of sanctions with respect to any person for, 
conducting or facilitating any transaction in the currency of 
the country in which the person is operating at the time of the 
transaction for the sale of agricultural commodities, food, 
medicine, or medical devices.
    (e) Definitions.--In this section:
            (1) Account; correspondent account; payable-through 
        account.--The terms ``account'', ``correspondent 
        account'', and ``payable-through account'' have the 
        meanings given those terms in section 5318A of title 
        31, United States Code.
            (2) Agricultural commodity.--The term 
        ``agricultural commodity'' has the meaning given that 
        term in section 102 of the Agricultural Trade Act of 
        1978 (7 U.S.C. 5602).
            (3) Foreign financial institution.--The term 
        ``foreign financial institution'' has the meaning given 
        that term in section 561.308 of title 31, Code of 
        Federal Regulations (or any corresponding similar 
        regulation or ruling).
            (4) Iranian financial institution.--The term 
        ``Iranian financial institution'' has the meaning given 
        that term in section 104A(d) of the Comprehensive Iran 
        Sanctions, Accountability, and Divestment Act of 2010 
        (22 U.S.C. 8513b(d)).
            (5) 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).
            (6) 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).
            (7) Transaction.--The term ``transaction'' includes 
        a foreign exchange swap, a foreign exchange forward, 
        and any other type of similar currency exchange or 
        conversion or similar derivative instrument.

           *       *       *       *       *       *       *


SEC. 225. SANCTIONS WITH RESPECT TO CERTAIN TRANSACTIONS WITH IRAN.

    (a) Authorization of Sanctions.--
            (1) In general.--Except as specifically provided in 
        this section, the President may impose sanctions 
        pursuant to the International Emergency Economic Powers 
        Act (50 U.S.C. 1701 et seq.) on a foreign person that 
        the President determines has, on or after the date that 
        is 60 days after the date of the enactment of the 
        Nuclear Iran Prevention Act of 2013, knowingly 
        conducted or facilitated a significant financial 
        transaction with the Central Bank of Iran or other 
        Iranian financial institution that has been designated 
        by the Secretary of the Treasury for the imposition of 
        sanctions pursuant to the International Emergency 
        Economic Powers Act, for--
                    (A) the purchase of goods or services by a 
                person in Iran or on behalf of a person in 
                Iran; or
                    (B) the purchase of goods or services from 
                a person in Iran or on behalf of a person in 
                Iran.
            (2) Rule of construction.--Nothing in this section 
        shall be construed to affect the imposition of 
        sanctions with respect to a financial transaction for 
        the purchase of petroleum or petroleum products from 
        Iran under section 1245 of the National Defense 
        Authorization Act for Fiscal Year 2012 (Public Law 112-
        81; 125 Stat. 1648).
    (b) Exception for Overall Reductions of Exports to and 
Imports From Iran.--
            (1) In general.--The President is authorized not to 
        impose sanctions under subsection (a) on a foreign 
        person if the President determines and submits to the 
        appropriate congressional committees a report that 
        contains a determination of the President that the 
        country with primary jurisdiction over the foreign 
        person has, during the time period described in 
        paragraph (2), significantly reduced the value and 
        volume of imports and exports of goods (other than 
        petroleum or petroleum products) and services between 
        such country and Iran.
            (2) Time period described.--The time period 
        referred to in paragraph (1) is the 60-day period 
        ending on the date on which the President makes the 
        determination under paragraph (1) as compared to the 
        immediately preceding 60-day period.
    (c) Exception for Sales of Agricultural Commodities, Food, 
Medicine and Medical Devices.--The President may not impose 
sanctions under subsection (a) on a foreign person with respect 
to a transaction for the sale of agricultural commodities, 
food, medicine or medical devices to Iran.
    (d) Definitions.--In this section:
            (1) Foreign person.--The term ``foreign person'' 
        has the meaning given that term in section 14 of the 
        Iran Sanctions Act of 1996 (Public Law 104-172; 50 
        U.S.C. 1701 note).
            (2) Iranian financial institution.--The term 
        ``Iranian financial institution'' has the meaning given 
        that term in section 104A(d) of the Comprehensive Iran 
        Sanctions, Accountability, and Divestment Act of 2010 
        (22 U.S.C. 8513b(d)).

 TITLE III--SANCTIONS WITH RESPECT TO IRAN'S REVOLUTIONARY GUARD CORPS

     Subtitle A--Identification of, and Sanctions With Respect to, 
 Officials, Agents, Affiliates, and Supporters of Iran's Revolutionary 
Guard Corps and Other Sanctioned Persons

           *       *       *       *       *       *       *


SEC. 304. DESIGNATION OF IRAN'S REVOLUTIONARY GUARD CORPS AS FOREIGN 
                    TERRORIST ORGANIZATION.

    (a) In General.--Not later than 30 days after the date of 
the enactment of this section, the Secretary of State shall 
determine if Iran's Revolutionary Guard Corps meets the 
criteria for designation as a foreign terrorist organization as 
set forth in section 219 of the Immigration and Nationality Act 
(8 U.S.C. 1189).
    (b) Affirmative Determination.--If the Secretary of State 
determines under subsection (a) that Iran's Revolutionary Guard 
Corps meets the criteria set forth under such section 219, the 
Secretary shall designate Iran's Revolutionary Guard Corps as a 
foreign terrorist organization under such section 219.
    (c) Negative Determination.--
            (1) In general.--If the Secretary of State 
        determines under subsection (a) that Iran's 
        Revolutionary Guard Corps does not meet the criteria 
        set forth under such section 219, the Secretary shall 
        submit to the committees of Congress specified in 
        subsection (e) a report that contains a detailed 
        justification as to which criteria have not been met.
            (2) Form.--The report required under paragraph (1) 
        shall be submitted in unclassified form, but may 
        contain a classified annex, if necessary.
    (d) Applicability of Sanctions to Quds Force.--The 
sanctions applied to any entity designated as a foreign 
terrorist organization as set forth in such section 219 shall 
be applied to the Iran's Revolutionary Guard Corps Quds Force.
    (e) Committees of Congress Specified.--The committees of 
Congress specified in this subsection are the following:
            (1) The Committee on Foreign Affairs, the Committee 
        on the Judiciary, and the Committee on Homeland 
        Security of the House of Representatives.
            (2) The Committee on Foreign Relations, the 
        Committee on the Judiciary, and the Committee on 
        Homeland Security and Governmental Affairs of the 
        Senate.

SEC. [304.] 305. RULE OF CONSTRUCTION.

    Nothing in this subtitle shall be construed to limit the 
authority of the President to designate foreign persons for the 
imposition of sanctions pursuant to the International Emergency 
Economic Powers Act (50 U.S.C. 1701 et seq.).

           *       *       *       *       *       *       *


       TITLE IV--MEASURES RELATING TO HUMAN RIGHTS ABUSES IN IRAN

 Subtitle A--Expansion of Sanctions Relating to Human Rights Abuses in 
                                  Iran

SEC. 401. IMPOSITION OF SANCTIONS ON CERTAIN PERSONS 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.], ENGAGING IN 
                    CENSORSHIP, OR ENGAGING IN THE DIVERSION OF GOODS 
                    INTENDED FOR THE PEOPLE OF IRAN.

    [(a) Sense of Congress.--It is the sense of Congress that 
the Supreme Leader of Iran, the President of Iran, senior 
members of the Intelligence Ministry of Iran, senior members of 
Iran's Revolutionary Guard Corps, Ansar-e-Hezbollah and Basij-
e-Mostaz'afin, and the Ministers of Defense, Interior, Justice, 
and Telecommunications are ultimately responsible for ordering, 
controlling, or otherwise directing a pattern and practice of 
serious human rights abuses against the Iranian people, and 
thus the President should include such persons on the list of 
persons who are responsible for or complicit in committing 
serious human rights abuses and subject to sanctions pursuant 
to section 105 of the Comprehensive Iran Sanctions, 
Accountability, and Divestment Act of 2010 (22 U.S.C. 8514).]
    (a) Finding and Sense of Congress.--
            (1) Finding.--Congress finds that Iranian persons 
        holding the following positions in the Government of 
        Iran are ultimately responsible for and have and 
        continue to knowingly order, control, direct and 
        implement gross violations of the human rights of the 
        Iranian people, the human rights of persons in other 
        countries, censorship, and the diversion of food, 
        medicine, medical devices, agricultural commodities and 
        other goods intended for the Iranian people:
                    (A) The Supreme Leader of Iran.
                    (B) The President of Iran.
                    (C) Members of the Council of Guardians.
                    (D) Members of the Expediency Council.
                    (E) The Minister of Intelligence and 
                Security.
                    (F) The Commander of the Iran's 
                Revolutionary Guard Corps.
                    (G) The Commander of the Basij-e-
                Mostaz'afin.
                    (H) The Commander of Ansar-e-Hezbollah.
                    (I) The Commander of the Quds Force.
                    (J) The Commander in Chief of the Police 
                Force.
                    (K) Senior officials or key employees of an 
                organization described in any of subparagraphs 
                (C) through (J) or in the Atomic Energy 
                Organization of Iran, the Islamic Consultative 
                Assembly of Iran, the Council of Ministers of 
                Iran, the Assembly of Experts of Iran, the 
                Ministry of Defense and Armed Forces Logistics 
                of Iran, the Ministry of Justice of Iran, the 
                Ministry of Interior of Iran, the prison system 
                of Iran, or the judicial system of Iran.
            (2) Sense of congress.--It is the sense of Congress 
        that--
                    (A) the President should include any 
                Iranian person holding a position in the 
                Government of Iran described in paragraph (1) 
                on one or more of the lists of persons subject 
                to sanctions pursuant to section 105(b), 
                105A(b), 105B(b), or 105C(b) of the 
                Comprehensive Iran Sanctions, Accountability, 
                and Divestment Act of 2010 (22 U.S.C. 8514(b), 
                8514a(b), 8514b(b), or 8514c(b)); and
                    (B) the President should impose sanctions 
                on such Iranian person pursuant to section 105, 
                105A, 105B, or 105C of such Act (as the case 
                may be).
    (b) Additional Finding and Sense of Congress.--
            (1) Finding.--Congress finds that other senior 
        officials of the Government of Iran, its agencies and 
        instrumentalities, also have and continue to knowingly 
        order, control, direct, and implement gross violations 
        of the human rights of the Iranian people and the human 
        rights of persons in other countries.
            (2) Sense of congress.--It is the sense of Congress 
        that--
                    (A) the President should investigate 
                violations of human rights described in 
                paragraph (1) to identify other senior 
                officials of the Government of Iran that also 
                have or continue to knowingly order, control, 
                direct, and implement gross violations of human 
                rights of the Iranian people and the human 
                rights of persons in other countries;
                    (B) the President should include any such 
                official on one or more of the lists of persons 
                subject to sanctions pursuant to section 
                105(b), 105A(b), 105B(b), or 105C(b) of the 
                Comprehensive Iran Sanctions, Accountability, 
                and Divestment Act of 2010 (22 U.S.C. 8514(b), 
                8514a(b), 8514b(b), or 8514c(b)); and
                    (C) the President should impose sanctions 
                on any such official pursuant to section 105, 
                105A, 105B, or 105C of such Act (as the case 
                may be).
    [(b)] (c) Report.--
            (1) Report required.--[Not later than]
                    (A) In general.--Not later than 180 days 
                after the date of the enactment of [this Act] 
                the Nuclear Iran Prevention Act of 2013, and 
                annually thereafter for 3 years, the Secretary 
                of State shall submit to the appropriate 
                congressional committees a detailed report with 
                respect to whether each person described in 
                subsection (a) is responsible for or complicit 
                in, or responsible for ordering, controlling, 
                or [otherwise directing the commission of] 
                otherwise directing--
                            (i) 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. For any 
                        such person] Iran;
                            (ii) censorship or related 
                        activities with respect to Iran; or
                            (iii) the diversion of goods, food, 
                        medicine, medical devices, and 
                        agricultural commodities, intended for 
                        the people of Iran.
                    (B) Requirement relating to persons not 
                included.--For any such person who is not 
                included in such report, the Secretary of State 
                should describe in the report the reasons why 
                the person was not included, including 
                information on whether sufficient credible 
                evidence of responsibility for such abuses was 
                found.
                    (C) Requirement relating to financial net 
                worth.--For each such person described in 
                subparagraph (A) and each such person described 
                in subparagraph (B), the Secretary of State 
                shall include in the report a description of 
                the estimated net worth of the person.

           *       *       *       *       *       *       *


Subtitle B--Additional Measures to Promote Human Rights

           *       *       *       *       *       *       *


SEC. 413. EXPEDITED CONSIDERATION OF REQUESTS FOR AUTHORIZATION OF 
                    CERTAIN HUMAN RIGHTS-, HUMANITARIAN-, AND 
                    DEMOCRACY-RELATED ACTIVITIES WITH RESPECT TO IRAN.

    (a) * * *

           *       *       *       *       *       *       *

    (e) Rule of Construction.--The expedited process for the 
consideration of complete requests for authorization to engage 
in the activities described in subsection (a) shall be 
construed to also apply to the transfer of goods and services 
to Iran to facilitate the ability of Iranian persons to freely 
communicate, obtain information, and access the Internet and 
other communications systems.
    [(e)] (f) Regulations.--The Secretary of the Treasury may 
prescribe such regulations as are appropriate to carry out this 
section.

           *       *       *       *       *       *       *


                      TITLE VI--GENERAL PROVISIONS

SEC. 601. IMPLEMENTATION; PENALTIES.

    (a) Implementation.--The President may exercise all 
authorities provided under sections 203 and 205 of the 
International Emergency Economic Powers Act (50 U.S.C. 1702 and 
1704) to carry out--
            (1) sections 211, 212, 213, 217, 218, 220, 220A, 
        312, and 411, subtitle A of title III, and title VII;

           *       *       *       *       *       *       *

    (b) Penalties.--
            (1) * * *
            (2) Provisions specified.--The provisions specified 
        in this paragraph are the following:
                    (A) Sections 211, 212, 213, [and 220,] 220, 
                and 220A, subtitle A of title III, and title 
                VII.

           *       *       *       *       *       *       *


SEC. 605. TERMINATION.

    (a) In General.--The provisions of sections 211, 212, 213, 
218, 220, 220A, 221, and 501, title I, and subtitle A of title 
III shall terminate on the date that is 30 days after the date 
on which the President makes the certification described in 
section 401(a) of the Comprehensive Iran Sanctions, 
Accountability, and Divestment Act of 2010 (22 U.S.C. 8551(a)).

           *       *       *       *       *       *       *

                              ----------                              


                       IRAN SANCTIONS ACT OF 1996



           *       *       *       *       *       *       *
SEC. 5. IMPOSITION OF SANCTIONS.

    (a) Sanctions Relating to the Energy Sector of Iran.--
            (1) * * *

           *       *       *       *       *       *       *

            (7) Transportation of crude oil [from iran] from 
        iran and certain imports and exports to and from 
        iran.--
                    (A) In general.--Except as provided in 
                subsection (f), the President shall impose 5 or 
                more of the sanctions described in section 6(a) 
                with respect to a person if the President 
                determines that--
                            (i) the person is a controlling 
                        beneficial owner of, or otherwise owns, 
                        operates, or controls, or insures, [a 
                        vessel that, on or after] a vessel 
                        that--
                                    (I) on or after the date 
                                that is 90 days after the date 
                                of the enactment of the Iran 
                                Threat Reduction and Syria 
                                Human Rights Act of 2012, was 
                                used to transport crude oil 
                                from Iran to another country; 
                                [and] or
                                    (II)(aa) knowingly 
                                transports to or from Iran any 
                                good if the importation to Iran 
                                or exportation from Iran, as 
                                the case may be, of that good 
                                is subject to sanctions under 
                                this Act; or
                                    (bb) knowingly engages in a 
                                vessel-to-vessel transfer of 
                                crude oil transported from 
                                Iran;
                            (ii)(I) * * *
                            (II) in the case of a person that 
                        otherwise owns, operates, or controls, 
                        or insures, the vessel, the person knew 
                        or should have known the vessel was so 
                        used[.]; or
                            (iii) the person is a person who 
                        knowingly sells, leases, or otherwise 
                        facilitates the transfer of ownership 
                        of a vessel to the Government of Iran, 
                        or any agencies or affiliates thereof, 
                        for the purpose of transportation of 
                        crude oil from Iran to another country.

           *       *       *       *       *       *       *

    (b) Mandatory Sanctions With Respect to Development of 
Weapons of Mass Destruction or Other Military Capabilities.--
            (1) * * *
            (2) Joint ventures relating to the mining, 
        production, or transportation of uranium and other 
        related activities.--
                    (A) * * *

           *       *       *       *       *       *       *

                    (C) Transfer to iran of goods, services, or 
                technology that can be used for mining or 
                milling of uranium.--Except as provided in 
                subsection (f), the President shall impose 5 or 
                more of the sanctions described in section 6(a) 
                with respect to a person if the President 
                determines that the person knowingly 
                transferred, on or after the date of the 
                enactment of the Nuclear Iran Prevention Act of 
                2013, to Iran goods, services, or technology 
                that would materially contribute to Iran's 
                ability to mine or mill uranium.

           *       *       *       *       *       *       *


SEC. 9. DURATION OF SANCTIONS; PRESIDENTIAL WAIVER.

    (a) * * *

           *       *       *       *       *       *       *

    (c) Presidential Waiver.--
            (1) Authority.--
                    (A) * * *
                    [(B) Sanctions relating to development of 
                weapons of mass destruction or other military 
                capabilities.--The President may waive, on a 
                case-by-case basis and for a period of not more 
                than one year, the requirement in paragraph (1) 
                or (2) of section 5(b) to impose a sanction or 
                sanctions on a person described in section 
                5(c), and may waive the continued imposition of 
                a sanction or sanctions under subsection (b) of 
                this section, 30 days or more after the 
                President determines and so reports to the 
                appropriate congressional committees that it is 
                vital to the national security interests of the 
                United States to exercise such waiver 
                authority.]
                    [(C)] (B) Renewal of waivers.--The 
                President may renew, on a case-by-case basis, a 
                waiver with respect to a person under 
                subparagraph (A) [or (B)] for additional one-
                year periods if, not later than 30 days before 
                the waiver expires, the President makes the 
                determination and submits to the appropriate 
                congressional committees the report described 
                in subparagraph (A) [or (B), as applicable].

           *       *       *       *       *       *       *


SEC. 14. DEFINITIONS.

    As used in this Act:
            (1) * * *

           *       *       *       *       *       *       *

            (4) Credible information.--The term ``credible 
        information'', with respect to a person--
                    (A) * * *
                    (B) [may include, in the discretion of the 
                President] includes--
                            (i) * * *

           *       *       *       *       *       *       *

                              ----------                              


        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2012



           *       *       *       *       *       *       *
DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

           *       *       *       *       *       *       *


TITLE XII--MATTERS RELATING TO FOREIGN NATIONS

           *       *       *       *       *       *       *


Subtitle C--Reports and Other Matters

           *       *       *       *       *       *       *


SEC. 1245. IMPOSITION OF SANCTIONS WITH RESPECT TO THE FINANCIAL SECTOR 
                    OF IRAN.

    (a) * * *

           *       *       *       *       *       *       *

    (d) Imposition of Sanctions With Respect to the Central 
Bank of Iran and Other Iranian Financial Institutions.--
            (1) * * *

           *       *       *       *       *       *       *

            (4) Applicability of sanctions with respect to 
        petroleum transactions.--
                    (A) * * *

           *       *       *       *       *       *       *

                    (D) Exception.--
                            (i) In general.--Sanctions imposed 
                        pursuant to paragraph (1) shall not 
                        apply with respect to a financial 
                        transaction described in clause (ii) 
                        conducted or facilitated by a foreign 
                        financial institution if the President 
                        determines and reports to Congress, not 
                        later than 90 days after the date on 
                        which the President makes the 
                        determination required by subparagraph 
                        (B), and every 180 days thereafter, 
                        that the country with primary 
                        jurisdiction over the foreign financial 
                        institution--
                                    (I) has significantly 
                                [reduced reduced] reduced its 
                                value and volume of crude oil 
                                purchases from Iran or of 
                                Iranian origin during the 
                                period beginning on the date on 
                                which the President submitted 
                                the last report with respect to 
                                the country under this 
                                subparagraph, and the President 
                                certifies in writing to 
                                Congress that the President has 
                                based such determination on 
                                accurate information on that 
                                country's total purchases of 
                                crude oil from Iran or of 
                                Iranian origin; or

           *       *       *       *       *       *       *

                            (ii) Financial transactions 
                        described.--A financial transaction 
                        conducted or facilitated by a foreign 
                        financial institution is described in 
                        this clause if--
                                    (I) * * *
                                    (II)(aa) any funds owed to 
                                Iran as a result of such trade 
                                are credited to an account 
                                located in the country with 
                                primary jurisdiction over the 
                                foreign financial 
                                institution[.]; and
                                    (bb) the foreign financial 
                                institution holding the account 
                                described in item (aa) does not 
                                knowingly facilitate any 
                                significant financial transfers 
                                for, with, or on behalf of the 
                                Government of Iran, unless the 
                                transaction is excepted from 
                                sanctions under paragraph (2) 
                                or is a transaction described 
                                in subclause (I) and item (aa).
                            (iii) Crude oil.--In this 
                        subparagraph, the term ``crude oil'' 
                        includes unfinished oils, liquefied 
                        petroleum gases, distillate fuel oil, 
                        and residual fuel oil.
                    (E) Strategy to reduce crude oil purchases 
                from iran or of iranian origin.--
                            (i) In general.--Not later than 30 
                        days after the date of the enactment of 
                        the Nuclear Iran Prevention Act of 
                        2013, the President shall make a 
                        determination, based on the information 
                        contained in the most recent report 
                        required under subparagraph (A), of 
                        whether each country that received an 
                        exception under subparagraph (D)(i)(I) 
                        before such date of enactment is able 
                        to reduce its crude oil purchases from 
                        Iran or of Iranian origin so that the 
                        aggregate amount of such purchases is 
                        reduced by not less than an average of 
                        1,000,000 barrels of crude oil per day 
                        by the end of the 1-year period 
                        beginning on the date of submission of 
                        the strategy described in clause (ii). 
                        If the President makes an initial 
                        determination under this clause that 
                        the requirements of this clause cannot 
                        be met, then the President shall 
                        continue to make a determination under 
                        this clause every 90 days thereafter as 
                        to whether or not the requirements of 
                        this clause can be met.
                            (ii) Strategy.--If the President 
                        determines that the requirements of 
                        clause (i) can be met, then not later 
                        than 60 days after the date of such 
                        affirmative determination, the 
                        President shall develop and submit to 
                        the appropriate congressional 
                        committees a strategy to seek to ensure 
                        that the requirements of clause (i) are 
                        met by the end of the 1-year period 
                        beginning on such date of submission.
                            (iii) Future exceptions.--
                                    (I) Affirmative 
                                determination.--If the 
                                President determines that the 
                                strategy described in clause 
                                (ii) was achieved, then each 
                                country described in clause (i) 
                                shall be eligible to receive 
                                one or more further exceptions 
                                under subparagraph (D)(i)(I) in 
                                accordance with the provisions 
                                of such subparagraph.
                                    (II) Negative 
                                determination.--Except as 
                                provided in subclause (III), if 
                                the President determines that 
                                the strategy described in 
                                clause (ii) was not achieved, 
                                then each country described in 
                                clause (i) shall be ineligible 
                                to receive any further 
                                exception under subparagraph 
                                (D)(i)(I) in accordance with 
                                the provisions of such 
                                subparagraph.
                                    (III) Exception.--
                                            (aa) In general.--
                                        Subclause (II) shall 
                                        not apply with respect 
                                        to a country described 
                                        in clause (i) if the 
                                        country--
                                                    (AA) 
                                                dramatically 
                                                reduced its 
                                                crude oil 
                                                purchases from 
                                                Iran or of 
                                                Iranian origin 
                                                during the 1-
                                                year period 
                                                described in 
                                                clause (ii); 
                                                and
                                                    (BB) has 
                                                committed 
                                                itself to 
                                                continue to 
                                                reduce its 
                                                crude oil 
                                                purchases from 
                                                Iran or of 
                                                Iranian origin 
                                                to a de minimis 
                                                level.
                                            (bb) Data.--The 
                                        President shall submit 
                                        to the appropriate 
                                        congressional 
                                        committees all data 
                                        used to make a 
                                        determination under 
                                        item (aa) not later 
                                        than 15 days before 
                                        issuing an exception 
                                        under item (aa).
                            (iv) Appropriate congressional 
                        committees.--In this subparagraph, the 
                        term ``appropriate congressional 
                        committees'' means--
                                    (I) the Committee on 
                                Foreign Affairs and the 
                                Committee on Financial Services 
                                of the House of 
                                Representatives; and
                                    (II) the Committee on 
                                Foreign Relations and the 
                                Committee on Banking, Housing, 
                                and Urban Affairs of the 
                                Senate.
            (5) Waiver.--The President may waive the imposition 
        of sanctions under paragraph (1) for a period of not 
        more than 120 days, and may renew that waiver for 
        additional periods of not more than 120 days, if the 
        President--
                    (A) determines that such a waiver is [in 
                the national] vital to the national security 
                interest of the United States; and

           *       *       *       *       *       *       *

    (h) Definitions.--In this section:
            (1) * * *

           *       *       *       *       *       *       *

            (3) Significant reductions.--The terms ``reduce 
        significantly'', ``significant reduction'', and 
        ``significantly reduced'', with respect to purchases 
        from Iran of petroleum and petroleum products, include 
        a reduction in such purchases in terms of price [or] 
        and volume toward a complete cessation of such 
        purchases and at least a pro rata amount totaling, in 
        the aggregate, not less than an average of 1,000,000 
        barrels of crude oil per day by the end of the 1-year 
        period beginning on the date of submission of the 
        strategy described in subsection (d)(4)(E)(ii).

           *       *       *       *       *       *       *

                              ----------                              


        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2013



           *       *       *       *       *       *       *
DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

           *       *       *       *       *       *       *


TITLE XII--MATTERS RELATING TO FOREIGN NATIONS

           *       *       *       *       *       *       *


Subtitle D--Iran Sanctions

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SEC. 1244. IMPOSITION OF SANCTIONS WITH RESPECT TO [THE ENERGY, 
                    SHIPPING, AND SHIPBUILDING SECTORS] PORTS, SPECIAL 
                    ECONOMIC ZONES, FREE ECONOMIC ZONES, AND STRATEGIC 
                    SECTORS OF IRAN.

    (a) Findings.--Congress makes the following findings:
            (1) Iran's energy, shipping, [and shipbuilding] 
        shipbuilding, automotive, construction, engineering, or 
        mining sectors and Iran's ports are facilitating the 
        Government of Iran's nuclear proliferation activities 
        by providing revenue to support proliferation 
        activities.

           *       *       *       *       *       *       *

    (b) Designation of Ports [and Entities in the Energy, 
Shipping, and Shipbuilding Sectors], Special Economic Zones, 
Free Economic Zones, and Entities in Strategic Sectors of Iran 
as Entities of Proliferation Concern.--Entities that operate 
ports in Iran [and entities in the energy, shipping, and 
shipbuilding sectors], entities that operate special economic 
zones or free economic zones, and entities in strategic sectors 
(as defined in subsection (c)(4)) of Iran, including the 
National Iranian Oil Company, the National Iranian Tanker 
Company, the Islamic Republic of Iran Shipping Lines, and their 
affiliates, play an important role in Iran's nuclear 
proliferation efforts and all such entities are hereby 
designated as entities of proliferation concern.
    (c) Blocking of Property of [Entities in Energy, Shipping, 
and Shipbuilding Sectors] Ports, Special Economic Zones, Free 
Economic Zones, and Entities in Strategic Sectors.--
            (1) Blocking of property.--
                    [(A) In general.--] On and after the date 
                that is 180 days after the date of the 
                enactment of this Act, the President shall 
                block and prohibit all transactions in all 
                property and interests in property of any 
                person described in paragraph (2) if such 
                property and 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.
                    [(B) Exception.--The requirement to block 
                and prohibit all transactions in all property 
                and interests in property under subparagraph 
                (A) shall not include the authority to impose 
                sanctions on the importation of goods.]
            (2) Persons described.--A person is described in 
        this paragraph if the President determines that the 
        person, on or after the date that is 180 days after the 
        date of the enactment of this Act--
                    (A) is part of [the energy, shipping, or 
                shipbuilding sectors] a strategic sector (as 
                defined in paragraph (4)(A)) of Iran;
                    (B) operates a port, special economic zone, 
                or free economic zone in Iran; or
                    (C) knowingly provides significant 
                financial, material, technological, or other 
                support to, or goods or services in support of 
                any activity or transaction on behalf of or for 
                the benefit of--
                            (i) a person determined under 
                        subparagraph (A) to be a part of [the 
                        energy, shipping, or shipbuilding 
                        sectors] a strategic sector (as defined 
                        in paragraph (4)(A)) of Iran;
                            (ii) a person determined under 
                        subparagraph (B) to operate a port, 
                        special economic zone, or free economic 
                        zone in Iran; or

           *       *       *       *       *       *       *

            (4) Strategic sector defined.--In this section, the 
        term ``strategic sector'' means--
                    (A) the energy, shipping, shipbuilding, 
                automotive, or mining sector of Iran;
                    (B) the construction or engineering sector 
                of Iran if the President determines and reports 
                to Congress not later than 45 days after the 
                date of the enactment of the Nuclear Iran 
                Prevention Act of 2013 that the construction or 
                engineering sector of Iran, as the case may be, 
                is of strategic importance to Iran; and
                    (C) any other sector that the President 
                designates as of strategic importance to Iran.
            (5) Notification and report relating to strategic 
        sectors.--
                    (A) Notification.--The President shall 
                submit to Congress a notification of the 
                designation of a sector as a strategic sector 
                of Iran for purposes of paragraph (4)(C) not 
                later than 30 days after the date on which the 
                President makes such designation.
                    (B) Report.--Not later than 90 days after 
                the date on which the President submits to 
                Congress a notification of the designation of a 
                sector as a strategic sector of Iran under 
                subparagraph (A), the Comptroller General of 
                the United States shall submit to Congress a 
                report that contains--
                            (i) a review and comment on such 
                        designation; and
                            (ii) recommendations regarding the 
                        designation of additional sectors as 
                        strategic sectors of Iran for purposes 
                        of paragraph (4).
    (d) Additional Sanctions With Respect to [the Energy, 
Shipping, and Shipbuilding Sectors] Strategic Sectors of 
Iran.--
            [(1) Sale, supply, or transfer of certain goods and 
        services.--]
                    [(A) In general.--Except as provided] (1) 
                Sale, supply, or transfer of certain goods and 
                services._Except as provided in this section, 
                the President shall impose 5 or more of the 
                sanctions described in section 6(a) of the Iran 
                Sanctions Act of 1996 (Public Law 104-172; 50 
                U.S.C. 1701 note) with respect to a person if 
                the President determines that the person 
                knowingly, on or after the date that is 180 
                days after the date of the enactment of this 
                Act, sells, supplies, or transfers to or from 
                Iran goods or services described in paragraph 
                (3).
                    [(B) Exception.--The requirement to impose 
                sanctions under subparagraph (A) shall not 
                include the authority to impose sanctions 
                relating to the importation of goods under 
                paragraph (8)(A) or (12) of section 6(a) of the 
                Iran Sanctions Act of 1996, and any sanction 
                relating to the importation of goods shall not 
                count for purposes of the requirement to impose 
                sanctions under subparagraph (A).]

           *       *       *       *       *       *       *

            (3) Goods and services described.--Goods or 
        services described in this paragraph are significant 
        goods or services used in connection with [the energy, 
        shipping, or shipbuilding sectors] a strategic sector 
        (as defined in subsection (c)(4)(A)) of Iran, including 
        the National Iranian Oil Company, the National Iranian 
        Tanker Company, and the Islamic Republic of Iran 
        Shipping Lines.

           *       *       *       *       *       *       *

    (f) Exception for Afghanistan Reconstruction.--The 
President may provide for an exception from the imposition of 
sanctions under this section for reconstruction assistance or 
economic development for Afghanistan for a period of not more 
than 1 year, and may renew that exception for additional 
periods of not more than 1 year--
            (1) [to the extent that] if the President 
        determines that such an exception or the renewal of the 
        exception, as the case may be, is [in the national 
        interest] in the national security interest of the 
        United States; and
            (2) if the President submits to the appropriate 
        congressional committees a notification of and 
        justification for the exception or the renewal of the 
        exception, as the case may be, not later than 15 days 
        before issuing the exception or the renewal of the 
        exception.

           *       *       *       *       *       *       *


SEC. 1245. IMPOSITION OF SANCTIONS WITH RESPECT TO THE SALE, SUPPLY, OR 
                    TRANSFER OF CERTAIN MATERIALS TO OR FROM IRAN.

    [(a) Sale, Supply, or Transfer of Certain Materials.--]
            [(1) In general.--The President]
    (a) Sale, Supply, or Transfer of Certain Materials._The 
President shall impose 5 or more of the sanctions described in 
section 6(a) of the Iran Sanctions Act of 1996 (Public Law 104-
172; 50 U.S.C. 1701 note) with respect to a person if the 
President determines that the person knowingly, on or after the 
date that is 180 days after the date of the enactment of this 
Act, sells, supplies, or transfers, directly or indirectly, to 
or from Iran--
            [(A)] (1) a precious metal;
            [(B)] (2) a material described in subsection (d) 
        determined pursuant to subsection (e)(1) to be used by 
        Iran as described in that subsection;
            [(C)] (3) any other material described in 
        subsection (d) if--
                    [(i)] (A) the material is--
                            [(I)] (i) to be used in connection 
                        with the energy, shipping, or 
                        shipbuilding sectors of Iran or any 
                        sector of the economy of Iran 
                        determined pursuant to subsection 
                        (e)(2) to be controlled directly or 
                        indirectly by Iran's Revolutionary 
                        Guard Corps;
                            [(II)] (ii) sold, supplied, or 
                        transferred to or from an Iranian 
                        person included on the list of 
                        specially designated nationals and 
                        blocked persons maintained by the 
                        Office of Foreign Assets Control of the 
                        Department of the Treasury (other than 
                        an Iranian financial institution 
                        described in subsection (b)); or
                            [(III)] (iii) determined pursuant 
                        to subsection (e)(3) to be used in 
                        connection with the nuclear, military, 
                        or ballistic missile programs of Iran; 
                        or
                    [(ii)] (B) the material is resold, 
                retransferred, or otherwise supplied--
                            [(I)] (i) to an end-user in a 
                        sector described in [subclause (I) of 
                        clause (i)] clause (i) of subparagraph 
                        (A);
                            [(II)] (ii) to a person described 
                        in [subclause (II) of that clause] 
                        clause (ii) of that subparagraph; or
                            [(III)] (iii) for a program 
                        described in [subclause (III) of that 
                        clause] clause (iii) of that 
                        subparagraph.
            [(2) Exception.--The requirement to impose 
        sanctions under paragraph (1) shall not include the 
        authority to impose sanctions relating to the 
        importation of goods under paragraph (8)(A) or (12) of 
        section 6(a) of the Iran Sanctions Act of 1996, and any 
        sanction relating to the importation of goods shall not 
        count for purposes of the requirement to impose 
        sanctions under paragraph (1).]

           *       *       *       *       *       *       *

    (h) Report on Determinations not to Impose Sanctions on 
Persons who Allegedly Sell, Supply, or Transfer Precious Metals 
to or From Iran.--
            (1) In general.--Not later than 90 days after the 
        date of the enactment of Nuclear Iran Prevention Act of 
        2013, and every 90 days thereafter, the President shall 
        submit to the appropriate congressional committees a 
        report on each determination of the President during 
        the preceding 90-day period not to impose sanctions 
        under subsection (a) or (c) with respect to a person 
        who allegedly sells, supplies, or transfers precious 
        metals, directly or indirectly, to or from Iran, 
        together with the reasons for such determination.
            (2) Form.--The report required by paragraph (1) 
        shall be submitted in unclassified form, but may 
        contain a classified annex, if necessary.
    [(h)] (i) National Balance Sheet of Iran Defined.--For 
purposes of this section, the term ``national balance sheet of 
Iran'' refers to the ratio of the assets of the Government of 
Iran to the liabilities of that Government.

SEC. 1246. IMPOSITION OF SANCTIONS WITH RESPECT TO THE PROVISION OF 
                    UNDERWRITING SERVICES OR INSURANCE OR REINSURANCE 
                    FOR ACTIVITIES OR PERSONS WITH RESPECT TO WHICH 
                    SANCTIONS HAVE BEEN IMPOSED.

    [(a) Imposition of Sanctions.--]
            [(1) In general.--Except as provided]
    (a) Imposition of Sanctions._Except as provided in this 
section, the President shall impose 5 or more of the sanctions 
described in section 6(a) of the Iran Sanctions Act of 1996 
(Public Law 104-172; 50 U.S.C. 1701 note) with respect to a 
person if the President determines that the person knowingly, 
on or after the date that is 180 days after the date of the 
enactment of this Act, provides underwriting services or 
insurance or reinsurance--
            [(A)] (1) for any activity with respect to Iran for 
        which sanctions have been imposed under this subtitle, 
        the International Emergency Economic Powers Act (50 
        U.S.C. 1701 et seq.), the Iran Sanctions Act of 1996, 
        the Comprehensive Iran Sanctions, Accountability, and 
        Divestment Act of 2010 (22 U.S.C. 8501 et seq.), the 
        Iran Threat Reduction and Syria Human Rights Act of 
        2012 (22 U.S.C. 8701 et seq.), the Iran, North Korea, 
        and Syria Nonproliferation Act (Public Law 106-178; 50 
        U.S.C. 1701 note), or any other provision of law 
        relating to the imposition of sanctions with respect to 
        Iran;
            [(B)] (2) to or for any person--
                    [(i)] (A) with respect to, or for the 
                benefit of any activity in the energy, 
                shipping, or shipbuilding sectors of Iran for 
                which sanctions are imposed under this 
                subtitle;
                    [(ii)] (B) for the sale, supply, or 
                transfer to or from Iran of materials described 
                in section 1245(d) for which sanctions are 
                imposed under this subtitle; or
                    [(iii)] (C) 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)] (i) Iran's proliferation of 
                        weapons of mass destruction or delivery 
                        systems for weapons of mass 
                        destruction; or
                            [(II)] (ii)  Iran's support for 
                        international terrorism; or
            [(C)] (3) to or for any Iranian person included on 
        the list of specially designated nationals and blocked 
        persons maintained by the Office of Foreign Assets 
        Control of the Department of the Treasury (other than 
        an Iranian financial institution described in 
        subsection (b)).
            [(2) Exception.--The requirement to impose 
        sanctions under paragraph (1) shall not include the 
        authority to impose sanctions relating to the 
        importation of goods under paragraph (8)(A) or (12) of 
        section 6(a) of the Iran Sanctions Act of 1996, and any 
        sanction relating to the importation of goods shall not 
        count for purposes of the requirement to impose 
        sanctions under paragraph (1).]

           *       *       *       *       *       *       *


SEC. 1247. IMPOSITION OF SANCTIONS WITH RESPECT TO FOREIGN FINANCIAL 
                    INSTITUTIONS THAT FACILITATE FINANCIAL TRANSACTIONS 
                    ON BEHALF OF SPECIALLY DESIGNATED NATIONALS.

    (a) * * *

           *       *       *       *       *       *       *

    (f) Persons Owned or Controlled by Specially Designated 
Nationals.--
            (1) In general.--The President shall impose 
        sanctions described in subsection (a) with respect to a 
        foreign financial institution, including but not 
        limited to a foreign central bank, that the President 
        determines has, on or after the date that is 90 days 
        after the date of the enactment of the Nuclear Iran 
        Prevention Act of 2013, knowingly facilitated a 
        significant financial transaction on behalf of any 
        person determined by the President to be directly owned 
        or controlled by an Iranian person included on the list 
        of specially designated nationals and blocked persons 
        maintained by the Office of Foreign Assets Control of 
        the Department of the Treasury (other than an Iranian 
        financial institution described in subsection (b)).
            (2) Sense of Congress.--It is the sense of Congress 
        that the President routinely should determine on or 
        after the date of the enactment of the Nuclear Iran 
        Prevention Act of 2013 those persons that are directly 
        or indirectly owned or controlled by an Iranian person 
        included on the list of specially designated nationals 
        and blocked persons maintained by the Office of Foreign 
        Assets Control of the Department of the Treasury (other 
        than an Iranian financial institution described in 
        subsection (b)).
            (3) Consideration of data from other countries and 
        nongovernmental organizations.--The President shall 
        consider credible data already obtained by other 
        countries and nongovernmental organizations in making 
        determinations described in paragraph (1).
    [(f)] (g) Waiver.--
            (1) * * *

           *       *       *       *       *       *       *

                              ----------                              


                     PORTS AND WATERWAYS SAFETY ACT



           *       *       *       *       *       *       *
SEC. 16. PROHIBITION ON ENTRY AND OPERATION.

    (a) In General.--No foreign vessel described in subsection 
(b) shall enter or operate in the navigable waters of the 
United States or transfer cargo in any port or place under the 
jurisdiction of the United States.
    (b) Vessels Described.--A vessel referred to in subsection 
(a) is a foreign vessel--
            (1) for which a Notice of Arrival is required to be 
        filed under section 160 of title 33, Code of Federal 
        Regulations, as in effect on the date of enactment of 
        the Nuclear Iran Prevention Act of 2013; and
            (2) that is knowingly registered, pursuant to the 
        Geneva Convention on the High Seas (13 U.S.T. 2312; 
        TIAS 5200; 450 UNTS 82), by a ship registry that is 
        maintaining a registration of a vessel that is included 
        in the list published under subsection (c).
    (c) Notification of Governments.--The Secretary of 
Transportation, in consultation with the Secretary of State, 
shall--
            (1) maintain timely information on registrations of 
        all foreign vessels over 300 gross tons that are--
                    (A) owned or operated by or on behalf of--
                            (i) the National Iran Tanker 
                        Company or the Islamic Republic of Iran 
                        Shipping Line; or
                            (ii) any successor to an entity 
                        referred to in clause (i); or
                    (B) otherwise owned or operated by or on 
                behalf of Iran;
            (2) notify each government the agents or 
        instrumentalities of which are maintaining a 
        registration of a foreign vessel described in paragraph 
        (1), that all vessels registered under such 
        government's authority are prohibited from entering or 
        operating in the navigable waters of the United States 
        or transferring cargo in any port or place under the 
        jurisdiction of the United States; and
            (3) publish in the Federal Register a list of 
        vessels described in paragraph (1), including periodic 
        updates of such list.
    (d) Notification of Vessels.--
            (1) In general.--Except as provided in paragraphs 
        (2) and (3), upon receiving a Notice of Arrival under 
        section 160 of title 33, Code of Federal Regulations 
        (as in effect on the date of enactment of the Nuclear 
        Iran Prevention Act of 2013) from a vessel described in 
        (b), the Secretary shall notify the master of such 
        vessel that the vessel may not enter or operate in the 
        navigable waters of the United States or transfer cargo 
        in any port or place under the jurisdiction of the 
        United States.
            (2) Provisional entry.--The Secretary may allow 
        provisional entry of, or transfer of cargo from, a 
        foreign vessel described in subsection (b) if such 
        entry or transfer is necessary for the safety of the 
        vessel or persons aboard.
            (3) Entry for due diligence.--The Secretary may 
        allow entry of, and transfer of cargo from, a vessel 
        described in subsection (b) if the master shows the 
        owner and operator of the vessel exercised due 
        diligence to avoid registration of the vessel by a 
        registry that registers vessels described in subsection 
        (c).
    (e) Right of Innocent Passage.--This section shall not be 
construed as authority to restrict the right of innocent 
passage as recognized under international law.
    (f) Foreign Vessel Defined.--In this section the term 
``foreign vessel'' has the meaning given that term in section 
2101 of title 46, United States Code.