H.R.2194 - Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010111th Congress (2009-2010)
Summary: H.R.2194 — 111th Congress (2009-2010)
Public Law (07/01/2010)
(This measure has not been amended since the Conference Report was filed in the House on June 23, 2010. The summary of that version is repeated here.)
Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 - (Sec. 3) Expresses the sense of Congress that: (1) international diplomatic efforts to address Iran's illicit nuclear efforts and support for international terrorism are more likely to be effective if strong additional sanctions are imposed on the government of Iran; (2) U.S. concerns regarding Iran are strictly the result of that governments actions; (3) the September 2009 revelation that Iran is developing a secret uranium enrichment site near Qom highlights the urgency that Iran disclose the full nature of its nuclear program and provide the International Atomic Energy Agency (IAEA) unfettered access to its facilities; (4) because of the Iranian Revolutionary Guard Corps' (IRGC) involvement in Iran's nuclear program, international terrorism, and domestic human rights abuses the President should impose the full range of sanctions on individuals or entities with IRGC ties; (5) the United States should adopt additional measures to prevent the diversion of sensitive dual-use technologies to Iran; (6) the President should take measures to respond to violations of human rights and religious freedom in Iran; (7) it is in the U.S. national interest to allow responsible U.S.-based nongovernmental organizations to establish and carry out operations in Iran to promote civil society and foster goodwill among the people of Iran; (8) the United States should not issue a license for the export of nuclear materials, services, or technology to a country that is providing similar materials, services, or technology to another country that is not in full compliance with its obligations under the Nuclear Non-Proliferation Treaty (NPT) unless their provision does not undermine U.S. nonproliferation policies; and (9) the people of the United States have feelings of friendship for the people of Iran and regret that developments in recent decades have created impediments to that friendship.
Title I: Sanctions - (Sec. 102) Amends the Iran Sanctions Act of 1996 (ISA) to direct the President to impose three or more specified ISA sanctions if a person (defined by such Act to include a natural person, business enterprise, or government entity operating as a business enterprise) has knowingly made an investment of $20 million or more, or any combination of investments of at least $5 million which in the aggregate equals or exceeds $20 million in any 12-month period, that directly and significantly contributed to Iran's ability to develop petroleum resources. (Under current law the sanction thresholds are $40 million, $10 million, and $40 million, respectively.)
Directs the President to impose three or more specified ISA sanctions on a person that knowingly sells, leases, or provides goods, services, technology, information, or provides support related to the production of refined petroleum products in Iran: (1) any of which has a fair market value of $1 million or more; or (2) that during a 12-month period have an aggregate fair market value of $5 million or more.
Directs the President to impose three or more specified ISA sanctions on a person that knowingly: (1) provides Iran with refined petroleum products that have a fair market value of $1 million or more, or that, during a 12-month period, have an aggregate fair market value of $5 million or more; or (2) sells, leases, or provides to Iran certain goods, services, technology, information, or support any of which has a fair market value of $1 million or more, or that during a 12-month period have an aggregate fair market value of $5 million or more.
Exempts from such sanctions underwriters and insurance providers exercising due diligence.
Directs the President to impose three or more specified ISA sanctions for violation of provisions regarding nuclear, chemical, or biological weapons of mass destruction or advanced conventional weapons.
Prohibits issuance of export licenses or approval of transfers pursuant to a civil nuclear cooperation agreement with the United States for any country whose nationals have engaged in activities with Iran relating to the acquisition or development of nuclear weapons or related technology or missiles or other advanced conventional weapons capable of delivering a nuclear weapon.
Authorizes waiver of such prohibition: (1) upon presidential determination and congressional notification that a government does not know or have reason to know about such activity, or is taking steps to prevent its recurrence and to penalize the person involved; or (2) for national security reasons on a case-by-case basis with congressional notification.
Revises parent entity and affiliate/subsidiary provisions to impose sanctions upon: (1) a parent entity that had actual knowledge or should have known that an affiliate or subsidiary engaged in sanctionable activities; or (2) an affiliate or subsidiary that knowingly engaged in sanctionable activities.
Establishes additional mandatory foreign exchange, banking, and property sanctions for violations of petroleum product and weapons of mass destruction prohibitions.
Requires: (1) each prospective contractor submitting a federal government bid to certify that the contractor or a person owned or controlled by the contractor does not conduct any sanctionable activity; and (2) contract termination or a three-year maximum suspension for federal contract eligibility for submission of a false certification. Authorizes the President to waive such certification on a case-by-case basis for reasons of U.S. national interest.
Amends presidential waiver of sanctions provisions to: (1) revise the standard from "important" to U.S. national interest to "necessary" to U.S. national interest; and (2) require in a waiver request information regarding an activity's effect on petroleum resource development or nuclear, chemical, or biological weapons development.
Requires the President to report to Congress annually regarding the dollar value amount of trade, including in the energy sector, between Iran and each country maintaining membership in the Group of Twenty (G-20) Finance Ministers and Central Bank Governors.
Expands the definition of "person" to include a financial institution, insurer, underwriter, guarantor, and any other business organization. (Excludes from such definition a government or government entity that is not operating as a business enterprise.)
Redefines "petroleum resources" to include petroleum, refined petroleum products, oil or liquefied natural gas, natural gas resources, oil or liquefied natural gas tankers, and products used to construct or maintain pipelines used to transport oil or liquefied natural gas.
Defines "refined petroleum products" to mean diesel, gasoline, jet fuel (including naphtha-type and kerosene-type jet fuel), and aviation gasoline.
Authorizes the President to waive sanctions for up to 12 months (with additional 12-month renewals) on a case-by-case basis for a person if: (1) such person is under the jurisdiction of a government that is cooperating with the United States in multilateral efforts to prevent Iran from acquiring or developing chemical, biological, or nuclear weapons or related technologies, including ballistic delivery systems, or acquiring or developing destabilizing numbers and types of conventional weapons; and (2) such waiver is vital to U.S. security interests. Requires a report to Congress identifying any such person.
Eliminates the enhanced sanction provision.
Requires the President to immediately investigate a person upon receipt of credible information that such person is engaged in sanctionable activity. (Current law provides that the President should initiate such investigation.) States that the President need not initiate, and may terminate, an investigation if the person has ended such activities.
States that the provisions of this section shall take effect on the date of enactment of this Act, and, with specified exceptions, apply to investments and activities begun on or after such date.
Sets forth applicability provisions regarding specified sanctionable activities.
Directs the President to report to Congress describing efforts to dissuade foreign persons from engaging in activities to enhance Iran's production and import of refined petroleum.
Provides that: (1) the investigation requirement shall be delayed for 180 days if the President certifies that there was a substantial reduction in such activities; and (2) if the President fails to make such certification the investigation shall begin on the date the certification was due.
Extends ISA to December 31, 2016.
(Sec. 103) Applies the following additional economic sanctions to Iran: (1) prohibition of any imports into the United States (permits existing exceptions under the the International Emergency Economic Powers Act, including the exception for information and informational materials); (2) prohibition of any exports to Iran (permits existing exceptions under the the International Emergency Economic Powers Act, and adds additional exemptions for humanitarian assistance, personal communications and personal Internet communications, agricultural commodities, food, medicine, and goods or services for commercial aircraft, IAEA, and for democracy promotion, and exports in the U.S. national interests); and (3) freezing of assets of certain individuals and officials, including the freezing of such assets when transferred to family members or associates.
Applies specified penalties under the International Emergency Economic Powers Act to persons that violate or attempt to violate this section.
(Sec. 104) Acknowledges U.N. Security Council efforts to impose limitations on transactions involving Iranian financial institutions, including the Central Bank of Iran.
Urges the President to consider immediately imposing sanctions on the Central Bank of Iran and any other Iranian financial institution engaged in proliferation activities or support of terrorist groups.
Requires the Secretary of the Treasury to prohibit or restrict the opening or maintaining in the United States of a correspondent or payable-through account by a foreign financial institution if that institution knowingly: (1) facilitates Iranian government, including the IRGC, efforts to acquire weapons of mass destruction (WMD) or to support international terrorism; (2) engages in dealings with Iranian persons sanctioned by the Security Council; (3) engages in money laundering or facilitates Central Bank of Iran efforts to aid Iran's WMD programs, to support Iran's sponsorship of terrorism, or to support persons under Security Council sanction; or (4) conducts significant business with the IRGC, its affiliates, or financial institutions whose property or interests are blocked pursuant to the International Emergency Economic Powers Act. Applies specified penalties under the International Emergency Economic Powers Act to persons that violate or attempt to violate such provisions.
Directs the Secretary of the Treasury to prohibit any person owned or controlled by a domestic financial institution from knowingly engaging in a transaction with or benefiting the IRGC or its affiliates whose property or interests are blocked pursuant to the International Emergency Economic Powers Act. Applies specified penalties under the International Emergency Economic Powers Act to a domestic financial institution if: (1) a person owned or controlled by the institution violates or attempts to violate such provisions; and (2) the institution knew or should have known of such activity.
Directs the Secretary of the Treasury to require a domestic financial institution maintaining a correspondent account or payable-through account in the United States for a foreign financial institution to do one or more of the following: (1) perform an audit of activities that may be carried out by the foreign financial institution; (2) report to the Department of the Treasury regarding transactions provided with any sanctioned activity; (3) certify that the foreign financial institution is not knowingly engaging in any such sanctioned activity; and (4) establish due diligence policies designed to detect whether the foreign financial institution has engaged in sanctioned activity. Applies specified penalties to persons that violate such provisions.
Authorizes the Secretary of the Treasury to waive such prohibitions for purposes of U.S. national interest.
Sets forth procedures for judicial review of classified information.
(Sec. 105) Directs the President to: (1) submit (with updates) to Congress a list of persons who are officials of the government of Iran or persons acting on behalf of that government that are responsible for or complicit in 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; and (2) impose visa entry, property, and financial sanctions on such persons.
Requires that: (1) the list of such persons required by this Act be made available to the public and posted on the Department of the Treasury and the Department of State websites; and (2) the President consider data obtained by other countries and nongovernmental organizations that monitor Iran's human rights abuses in preparing such list.
Terminates sanctions upon the President's certification to Congress that the government of Iran has: (1) released all political prisoners and detainees; (2) ceased its practices of violence and abuse of Iranian citizens engaging in peaceful political activity; (3) conducted a transparent investigation into the killings and abuse of peaceful political activists in Iran and prosecuted those responsible; and (4) made progress toward establishing an independent judiciary.
(Sec. 106) Prohibits the head of any U.S. executive agency from entering into procurement contracts with an entity that has exported to Iran sensitive communications technology intended to be used to monitor or disrupt the free flow of communications to, or restrict the speech of, the people of Iran.
Requires the Comptroller General to report to Congress assessing the impact of sanctions on executive agencies' procurement of goods of services with persons that export sensitive technology to Iran.
(Sec. 107) Amends the United Nations Participation Act of 1945 to increase criminal penalties to up to $1 million and 20 years in prison for violations of Security Council resolutions imposing sanctions.
Amends the Arms Export Control Act to increase criminal penalties to up to 20 years in prison for violations of provisions regarding: (1) import/export controls of defense articles and services; and (2) transactions with countries that support acts of international terrorism.
Increases criminal penalties to up to 20 years in prison for violations of the Trading with the Enemy Act.
Directs the United States Sentencing Commission to report to Congress regarding the impact of imposing a mandatory minimum sentence for specified violations of the United Nations Participation Act of 1945, the Arms Export Control Act, and the Trading with the Enemy Act.
(Sec. 108) Authorizes the President to prescribe regulations to implement a Security Council resolution that imposes sanctions on Iran.
(Sec. 109) Authorizes FY2011-FY2013 appropriations for the Department of the Treasury's: (1) Office of Terrorism and Financial Intelligence; and (2) Financial Crimes Enforcement Network.
Authorizes FY2011-FY2013 appropriations for the Department of Commerce's Bureau of Industry and Security.
(Sec. 110) Directs the President, within 90 days of enactment of this Act and every 180 days thereafter, to report to Congress regarding the volume of energy-related resources (other than refined petroleum) including ethanol, that Iran imported since January 1, 2006, along with a list of all known energy-related joint ventures, investments, and partnerships (and their value) located outside Iran that involve Iranian entities in partnership with entities from other countries.
(Sec. 111) Directs the President to report to Congress on: (1) any activity of a foreign export credit agency that would be engaged in activities comparable to those which would be sanctionable under ISA; and (2) prior to the Export-Import Bank of the United States approving co-financing with such an agency, the identity of the foreign agency and beneficiaries of the financing.
(Sec. 112) Expresses the sense of Congress that the United States should: (1) target the IRGC and its supporters and affiliates with economic sanctions; and (2) identify and impose sanctions on foreign individuals, entities, and governments that provide material support for the IRGC.
(Sec. 113) Expresses the sense of Congress that the United States should continue to: (1) counter support for Hezbollah from Iran and other foreign governments; (2) target with sanctions Hezbollah, its affiliates and supporters; (3) urge the European Union (EU) and other countries to classify Hezbollah as a terrorist organization; and (4) renew international efforts to disarm Hezbollah.
(Sec. 114) Expresses the sense of Congress that: (1) effective multilateral sanctions are preferable to unilateral sanctions against countries like Iran; and (2) the President should work with our allies to impose multilateral sanctions to prevent Iran from acquiring a nuclear weapons capability.
(Sec. 115) Directs the President to report to Congress regarding the comprehensive provision of compensation to U.S. citizens, residents, or nationals who are victims of acts of international terrorism.
Title II: Divestment from Certain Companies that Invest in Iran - (Sec. 201) Defines (for purposes of this title) "energy sector of Iran " as activities to develop petroleum or natural gas resources or nuclear power.
Defines (for purposes of this title) "person" as: (1) a natural person, corporation, company, business association, partnership, society, trust, or any other nongovernmental entity, organization, or group; (2) any governmental entity or instrumentality of a government, including a multilateral development institution; and (3) any successor, sub-unit, parent company, or subsidiary of such an entity.
(Sec. 202) Expresses the sense of Congress that the United States should support a state or local government decision to divest from or prohibit the investment of its assets in a person that engages in investment activities in Iran's energy sector as long as Iran is subject to U.S. economic sanctions.
Authorizes a state or local government to adopt and enforce measures to divest its assets from or prohibit the investment of assets it controls in any person that: (1) has an investment of $20 million or more in Iran's energy sector, 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 liquefied natural gas, for Iran's energy sector; or (2) is a financial institution that extends $20 million or more in credit to another person for at least 45 days if that person will use the credit for investment in Iran's energy sector.
Requires any such action to meet notice, timing, hearing requirements.
Defines "assets" as public monies including any pension, retirement, annuity, endowment fund, or similar instrument that is controlled by a state or local government. Excludes from such definition employee benefit plans covered by title I of the Employee Retirement Income Security Act of 1974 (ERISA).
Applies this section, with specified exceptions, to measures adopted by a state or local government before, on, or after the date of the enactment of this Act.
Authorizes a state or local government to enforce a divestment measure without regard to notice, timing, and hearing requirements for up to two years after the date of the enactment of this Act.
(Sec. 203) Amends the Investment Company Act of 1940 to shield any registered investment company and its directors, officers, employees, or advisors from civil, criminal, or administrative action based upon its divesting from or avoiding investing in securities issued by persons that the investment company credibly determines: (1) conduct or have direct investments in specified business operations in Sudan; or (2) engage in specified investment activities in Iran.
Directs the Securities and Exchange Commission (SEC) to promulgate rules requiring registered investment companies to disclose such divestment decisions in their regular SEC reports.
(Sec. 204) Expresses the sense of Congress that a fiduciary of certain employee benefit plans under ERISA may divest plan assets from or avoid investing plan assets in any person who engages in prohibited investment activities in Iran without breaching ERISA responsibilities if the fiduciary: (1) makes such determination using credible, publicly available information; and (2) determines that the action would not provide a lower rate of return than alternate investments with a commensurate degree of risk, or would not provide a higher degree of risk than alternate investments with commensurate rates of return.
(Sec. 205) Amends the Sudan Accountability and Divestment Act of 2007 regarding divestment standards.
Amends the Investment Company Act of 1940, as amended by section 203 of this Act, to state that nothing in such amendment shall be construed to create or affect any private right of action that exists or does not exist under such Act.
Title III: Prevention of Diversion of Certain Goods, Services, and Technologies to Iran - (Sec. 302) Requires the Director of National Intelligence (DNI) to report to the President, Secretaries of Defense, Commerce, State, Treasury, and to Congress identifying countries which allow the diversion through the country of certain goods, services, or technologies to Iranian end-users or Iranian intermediaries.
Describes such goods, services, or technologies as those that: (1) originated in the United States and would make a material contribution to Iran's development of nuclear, chemical, biological, ballistic, or advanced conventional weapons, or support for international terrorism, and are on the Commerce Control List or the United States Munitions List; or (2) are prohibited for export to Iran by the Security Council.
(Sec. 303) Directs the President to designate a country as a Destination of Possible Diversion Concern if the country's government allows substantial diversion of prohibited goods, services, or technologies through the country to Iranian end-users or Iranian intermediaries.
Bases such designation on criteria that include: (1) the volume of goods, services, or technologies that are transported through the country to Iranian end-users or intermediaries; (2) the inadequacy of the country's export controls; and (3) the country's unwillingness or inability to control diversion activities or cooperate with the United States in interdiction efforts.
Directs the President, upon such designation, to: (1) report to Congress; and (2) require an export license for the export of U.S. goods, services, or technologies that, if diverted to Iran, would contribute to Iran's weapons programs, defense capabilities, or support of terrorism (with a presumption of denial for all such license applications).
Authorizes the President to delay such licensing requirement for 12 months, with additional 12-month delays, if a country is taking specified actions to stop diversions to Iran.
Provides that upon a presidential determination that is it appropriate to carry out government-to-government activities to strengthen a country's export control system the United States shall initiate activities to: (1) develop or strengthen the country's export control system; (2) train the appropriate officials; and (3) encourage Proliferation Security Initiative participation.
Terminates a country's designation as a Destination of Diversion Concern when the President certifies to Congress that the country has strengthened its export control system to prevent such Iranian diversions.
(Sec. 304) Directs the President to report to Congress on whether to extend the measures in this title to countries that allow diversion to countries other than Iran seeking weapons of mass destruction or supporting international terrorism.
(Sec. 305) Authorizes the Secretary of Commerce to designate an employee of the Office of Export Enforcement to conduct certain enforcement activities under the Export Administration Act of 1979 pursuant to: (1) such Act or any license, order, or regulation issued under such Act; and (2) this title and any other export control provision under the Secretary's responsibility.
Title IV: General Provisions - (Sec. 401) Terminates the provisions of this Act 30 days after the date on which the President certifies to Congress that: (1) the government of Iran has ceased supporting acts of international terrorism and no longer satisfies certain requirements for designation as a state sponsor of terrorism; and (2) Iran has ceased the pursuit, acquisition, and development of nuclear, biological, chemical, and ballistic weapons.
Authorizes the President to waive, if in the U.S. national interest: (1) the application of sanctions; (2) sanctions on Iranian officials complicit in human rights abuses; (3) the prohibition on procurement contracts with persons that export sensitive technology to Iran; or (4) the imposition of the licensing requirement for a country designated as a Destination of Diversion Concern.
Directs the President to report to Congress regarding any such waiver.
Authorizes appropriations to: (1) the Secretary of State and to the Secretary of the Treasury to implement titles I and III; and (2) the Secretary of Commerce to implement title III.
(Sec. 402) Sets forth provisions concerning the budgetary effects of this Act for purposes of compliance with the Statutory Pay-As-You-Go-Act of 2010.