109th CONGRESS
2d Session
H. R. 282
IN THE SENATE OF THE UNITED STATES
April 27, 2006
Received; read twice and referred to the Committee on Foreign Relations
AN ACT
To hold the current regime in Iran accountable for its threatening
behavior and to support a transition to democracy in Iran.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Iran Freedom Support Act'.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 2. Table of contents.
TITLE I--CODIFICATION OF SANCTIONS AGAINST IRAN
Sec. 101. Codification of sanctions.
Sec. 102. Liability of parent companies for violations of sanctions by
foreign entities.
TITLE II--AMENDMENTS TO THE IRAN AND LIBYA SANCTIONS ACT OF 1996 AND OTHER
PROVISIONS RELATED TO INVESTMENT IN IRAN
Sec. 201. Multilateral regime.
Sec. 202. Imposition of sanctions.
Sec. 203. Termination of sanctions.
Sec. 205. Clarification and expansion of definitions.
Sec. 206. United States pension plans.
Sec. 207. Technical and conforming amendments.
TITLE III--DIPLOMATIC EFFORTS TO CURTAIL IRANIAN NUCLEAR PROLIFERATION
AND SPONSORSHIP OF INTERNATIONAL TERRORISM
Sec. 301. Diplomatic efforts.
Sec. 302. Strengthening the Nuclear Nonproliferation Treaty.
TITLE IV--DEMOCRACY IN IRAN
Sec. 401. Declaration of Congress regarding United States policy toward
Iran.
Sec. 402. Assistance to support democracy in Iran.
Sec. 403. Waiver of certain export license requirements.
TITLE I--CODIFICATION OF SANCTIONS AGAINST IRAN
SEC. 101. CODIFICATION OF SANCTIONS.
(a) Codification of Sanctions- United States sanctions, controls, and regulations
with respect to Iran imposed pursuant to Executive Order No. 12957, sections
1(b) through (1)(g) and sections (2) through (6) of Executive Order No.
12959, and sections 2 and 3 of Executive Order No. 13059 (relating to exports
and certain other transactions with Iran) as in effect on January 1, 2006,
shall remain in effect until the President certifies to the Committee on
International Relations of the House of Representatives and the Committee
on Foreign Relations of the Senate that the Government of Iran has verifiably
dismantled its weapons of mass destruction programs.
(b) No Effect on Other Sanctions Relating to Support for Acts of International
Terrorism- Subsection (a) shall have no effect on United States sanctions,
controls, and regulations relating to a determination under section 6(j)(1)(A)
of the Export Administration Act of 1979 (50 U.S.C. App. 2405(j)(1)(A)),
section 620A(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 2371(a)),
or section 40(d) of the Arms Export Control Act (22 U.S.C. 2780(d)) relating
to support for acts of international terrorism by the Government of Iran,
as in effect on January 1, 2006.
SEC. 102. LIABILITY OF PARENT COMPANIES FOR VIOLATIONS OF SANCTIONS BY
FOREIGN ENTITIES.
(a) In General- In any case in which an entity engages in an act outside
the United States which, if committed in the United States or by a United
States person, would violate Executive Order No. 12959 of May 6, 1995, Executive
Order No. 13059 of August 19, 1997, or any other prohibition on transactions
with respect to Iran that is imposed under the International Emergency Economic
Powers Act (50 U.S.C. 1701 et seq.) and if that entity was created or availed
of for the purpose of engaging in such an act, the parent company of that
entity shall be subject to the penalties for such violation to the same
extent as if the parent company had engaged in that act.
(b) Definitions- In this section--
(1) an entity is a `parent company' of another entity if it owns, directly
or indirectly, more than 50 percent of the equity interest in that other
entity and is a United States person; and
(2) the term `entity' means a partnership, association, trust, joint venture,
corporation, or other organization.
TITLE II--AMENDMENTS TO THE IRAN AND LIBYA SANCTIONS ACT OF 1996 AND OTHER
PROVISIONS RELATED TO INVESTMENT IN IRAN
SEC. 201. MULTILATERAL REGIME.
(a) Reports to Congress- Section 4(b) of the Iran and Libya Sanctions Act
of 1996 (50 U.S.C. 1701 note) is amended to read as follows:
`(b) Reports to Congress- Not later than six months after the date of the
enactment of the Iran Freedom Support Act and every six months thereafter,
the President shall submit to the appropriate congressional committees a
report regarding specific diplomatic efforts undertaken pursuant to subsection
(a), the results of those efforts, and a description of proposed diplomatic
efforts pursuant to such subsection. Each report shall include--
`(1) a list of the countries that have agreed to undertake measures to
further the objectives of section 3 with respect to Iran;
`(2) a description of those measures, including--
`(A) government actions with respect to public or private entities (or
their subsidiaries) located in their territories, that are engaged in
Iran;
`(B) any decisions by the governments of these countries to rescind
or continue the provision of credits, guarantees, or other governmental
assistance to these entities; and
`(C) actions taken in international fora to further the objectives of
section 3;
`(3) a list of the countries that have not agreed to undertake measures
to further the objectives of section 3 with respect to Iran, and the reasons
therefor; and
`(4) a description of any memorandums of understanding, political understandings,
or international agreements to which the United States has acceded which
affect implementation of this section or section 5(a).'.
(b) Waiver- Section 4(c) of such Act (50 U.S.C. 1701 note) is amended to
read as follows:
`(1) IN GENERAL- The President may, on a case by case basis, waive for
a period of not more than six months the application of section 5(a) with
respect to a national of a country, if the President certifies to the
appropriate congressional committees at least 30 days before such waiver
is to take effect that--
`(A) such waiver is vital to the national security interests of the
United States; and
`(B) the country of the national has undertaken substantial measures
to prevent the acquisition and development of weapons of mass destruction
by the Government of Iran.
`(2) SUBSEQUENT RENEWAL OF WAIVER- If the President determines that, in
accordance with paragraph (1), such a waiver is appropriate, the President
may, at the conclusion of the period of a waiver under paragraph (1),
renew such waiver for subsequent periods of not more than six months each.'.
(c) Investigations- Section 4 of such Act (50 U.S.C. 1701 note) is amended
by adding at the end the following new subsection:
`(1) IN GENERAL- The President shall initiate an investigation into the
possible imposition of sanctions against a person upon receipt by the
United States of credible information indicating that such person is engaged
in activity related to investment in Iran as described in section 5(a).
`(2) DETERMINATION AND NOTIFICATION-
`(A) IN GENERAL- Not later than 180 days after an investigation is initiated
in accordance with paragraph (1), the President shall determine, pursuant
to section 5(a), whether or not to impose sanctions against a person
engaged in activity related to investment in Iran as described in such
section as a result of such activity and shall notify the appropriate
congressional committees of the basis for such determination.
`(B) EXTENSION- If the President is unable to make a determination under
subparagraph (A), the President shall notify the appropriate congressional
committees and shall extend such investigation for a subsequent period,
not to exceed 180 days, after which the President shall make the determination
required under such subparagraph and shall notify the appropriate congressional
committees of the basis for such determination in accordance with such
subparagraph.
`(3) DETERMINATIONS REGARDING PENDING INVESTIGATIONS- Not later than 90
days after the date of the enactment of this Act, the President shall,
with respect to any investigation that was pending as of January 1, 2006,
concerning a person engaged in activity related to investment in Iran
as described in section 5(a), determine whether or not to impose sanctions
against such person as a result of such activity and shall notify the
appropriate congressional committees of the basis for such determination.
`(4) PUBLICATION- Not later than 10 days after the President notifies
the appropriate congressional committees under paragraphs (2) and (3),
the President shall ensure publication in the Federal Register of the
identification of the persons against which the President has made a determination
that the imposition of sanctions is appropriate, together with an explanation
for such determination.'.
SEC. 202. IMPOSITION OF SANCTIONS.
(a) Sanctions With Respect to Development of Petroleum Resources- Section
5(a) of the Iran and Libya Sanctions Act of 1996 (50 U.S.C. 1701 note) is
amended--
(1) in the heading, by striking `to Iran' and inserting `to the Development
of Petroleum Resources of Iran';
(2) by striking `(6)' and inserting `(5)'; and
(3) by striking `with actual knowledge,'.
(b) Sanctions With Respect to Development of Weapons of Mass Destruction
or Other Military Capabilities- Section 5(b) of such Act (50 U.S.C. 1701
note) is amended to read as follows:
`(b) Mandatory Sanctions With Respect to Development of Weapons of Mass
Destruction or Other Military Capabilities- Notwithstanding any other provision
of law, the President shall impose two or more of the sanctions described
in paragraphs (1) through (5) of section 6 if the President determines that
a person has, on or after the date of the enactment of this Act, exported,
transferred, or otherwise provided to Iran any goods, services, technology,
or other items knowing that the provision of such goods, services, technology,
or other items would contribute to the ability of Iran to--
`(1) acquire or develop chemical, biological, or nuclear weapons or related
technologies; or
`(2) acquire or develop destabilizing numbers and types of advanced conventional
weapons.'.
(c) Persons Against Which the Sanctions Are to Be Imposed- Section 5(c)(2)
of such Act (50 U.S.C. 1701 note) is amended--
(1) in subparagraph (B), by striking `, with actual knowledge,' and by
striking `or' at the end;
(2) in subparagraph (C), by striking `, with actual knowledge,' and by
striking the period at the end and inserting `; or'; and
(3) by adding after subparagraph (C) the following new subparagraph:
`(D) is a private or government lender, insurer, underwriter, or guarantor
of the person referred to in paragraph (1) if that private or government
lender, insurer, underwriter, or guarantor engaged in the activities
referred to in paragraph (1).'.
(d) Effective Date- The amendments made by this section shall apply with
respect to actions taken on or after March 15, 2006.
SEC. 203. TERMINATION OF SANCTIONS.
Section 8(a) of the Iran and Libya Sanctions Act of 1996 (50 U.S.C. 1701
note) is amended--
(1) in paragraph (1)(C), by striking `and' at the end;
(2) in paragraph (2), by striking the period at the end and inserting
`; and'; and
(3) by adding at the end the following new paragraph:
`(3) poses no significant threat to United States national security, interests,
or allies.'.
SEC. 204. SUNSET.
Section 13 of the Iran and Libya Sanctions Act of 1996 (50 U.S.C. 1701 note)
is amended--
(1) in the section heading, by striking `; sunset';
(2) in subsection (a), by striking the subsection designation and heading;
and
(3) by striking subsection (b).
SEC. 205. CLARIFICATION AND EXPANSION OF DEFINITIONS.
(a) Person- Section 14(14)(B) of the Iran and Libya Sanctions Act of 1996
(50 U.S.C. 1701 note) is amended--
(1) by inserting after `trust,' the following: `financial institution,
insurer, underwriter, guarantor, any other business organization, including
any foreign subsidiaries of the foregoing,'; and
(2) by inserting before the semicolon the following: `, such as an export
credit agency'.
(b) Petroleum Resources- Section 14(15) of the Iran and Libya Sanctions
Act of 1996 (50 U.S.C. 1701 note) is amended by inserting after `petroleum'
the second place it appears, the following: `, petroleum by-products,'.
SEC. 206. UNITED STATES PENSION PLANS.
(a) Findings- Congress finds the following:
(1) The United States and the international community face no greater
threat to their security than the prospect of rogue regimes who support
international terrorism obtaining weapons of mass destruction, and particularly
nuclear weapons.
(2) Iran is the leading state sponsor of international terrorism and is
close to achieving nuclear weapons capability but has paid no price for
nearly twenty years of deception over its nuclear program. Foreign entities
that have invested in Iran's energy sector, despite Iran's support of
international terrorism and its nuclear program, have afforded Iran a
free pass while many United States entities have unknowingly invested
in those same foreign entities.
(3) United States investors have a great deal at stake in preventing Iran
from acquiring nuclear weapons.
(4) United States investors can have considerable influence over the commercial
decisions of the foreign entities in which they have invested.
(b) Publication in Federal Register- Not later than six months after the
date of the enactment of this Act and every six months thereafter, the Secretary
of State shall ensure publication in the Federal Register of a list of all
United States and foreign entities that have invested more than $20,000,000
in Iran's energy sector between August 5, 1996, and the date of such publication.
Such list shall include an itemization of individual investments of each
such entity, including the dollar value, intended purpose, and current status
of each such investment.
(c) Sense of Congress Relating to Divestiture From Iran- It is the sense
of Congress that, upon publication of a list in the relevant Federal Register
under subsection (b), managers of United States Government pension plans
or thrift savings plans, managers of pension plans maintained in the private
sector by plan sponsors in the United States, and managers of mutual funds
sold or distributed in the United States should, to the extent consistent
with the legal and fiduciary duties otherwise imposed on them, immediately
initiate efforts to divest all investments of such plans or funds in any
entity included on the list.
(d) Sense of Congress Relating to Prohibition on Future Investment- It is
the sense of Congress that, upon publication of a list in the relevant Federal
Register under subsection (b), there should be, to the extent consistent
with the legal and fiduciary duties otherwise imposed on them, no future
investment in any entity included on the list by managers of United States
Government pension plans or thrift savings plans, managers of pension plans
maintained in the private sector by plan sponsors in the United States,
and managers of mutual funds sold or distributed in the United States.
SEC. 207. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Findings- Section 2 of the Iran and Libya Sanctions Act of 1996 (50
U.S.C. 1701 note) is amended by striking paragraph (4).
(b) Declaration of Policy- Section 3 of the Iran and Libya Sanctions Act
of 1996 (50 U.S.C. 1701 note) is amended--
(1) in subsection (a), by striking `(a) Policy With Respect to Iran- ';
and
(2) by striking subsection (b).
(c) Termination of Sanctions- Section 8 of the Iran and Libya Sanctions
Act of 1996 (50 U.S.C. 1701 note) is amended--
(1) in subsection (a), by striking `(a) Iran- '; and
(2) by striking subsection (b).
(d) Duration of Sanctions; Presidential Waiver- Section 9(c)(2)(C) of the
Iran and Libya Sanctions Act of 1996 (50 U.S.C. 1701 note) is amended to
read as follows:
`(C) an estimate of the significance of the provision of the items described
in section 5(a) or section 5(b) to Iran's ability to, respectively,
develop its petroleum resources or its weapons of mass destruction or
other military capabilities; and'.
(e) Reports Required- Section 10(b)(1) of the Iran and Libya Sanctions Act
of 1996 (50 U.S.C. 1701 note) is amended by striking `and Libya' each place
it appears.
(f) Definitions- Section 14 of the Iran and Libya Sanctions Act of 1996
(50 U.S.C. 1701 note) is amended--
(A) in the matter preceding subparagraph (A), by--
(I) striking `, or with the Government of Libya or a nongovernmental
entity in Libya,'; and
(ii) by striking `nongovenmental' and inserting `nongovernmental';
and
(B) in subparagraph (A), by striking `or Libya (as the case may be)';
(2) by striking paragraph (12); and
(3) by redesignating paragraphs (13), (14), (15), (16), and (17) as paragraphs
(12), (13), (14), (15), and (16), respectively.
(1) IN GENERAL- Section 1 of the Iran and Libya Sanctions Act of 1996
(50 U.S.C. 1701 note) is amended by striking `and Libya'.
(2) REFERENCES- Any reference in any other provision of law, regulation,
document, or other record of the United States to the `Iran and Libya
Sanctions Act of 1996' shall be deemed to be a reference to the `Iran
Sanctions Act of 1996'.
TITLE III--DIPLOMATIC EFFORTS TO CURTAIL IRANIAN NUCLEAR PROLIFERATION
AND SPONSORSHIP OF INTERNATIONAL TERRORISM
SEC. 301. DIPLOMATIC EFFORTS.
(a) Sense of Congress Relating to United Nations Security Council and the
International Atomic Energy Agency- It is the sense of Congress that the
President should instruct the United States Permanent Representative to
the United Nations to work to secure support at the United Nations Security
Council for a resolution that would impose sanctions on Iran as a result
of its repeated breaches of its nuclear nonproliferation obligations, to
remain in effect until Iran has verifiably dismantled its weapons of mass
destruction programs.
(b) Prohibition on Assistance to Countries That Invest in the Energy Sector
of Iran-
(1) WITHHOLDING OF ASSISTANCE- If, on or after April 13, 2005, a foreign
person (as defined in section 14 of the Iran Sanctions Act of 1996 (50
U.S.C. 1701 note), as renamed pursuant to section 208(g)(1)) or an agency
or instrumentality of a foreign government has more than $20,000,000 invested
in Iran's energy sector, the President shall, until the date on which
such person or agency or instrumentality of such government terminates
such investment, withhold assistance under the Foreign Assistance Act
of 1961 (22 U.S.C. 2151 et seq.) to the government of the country to which
such person owes allegiance or to which control is exercised over such
agency or instrumentality.
(2) WAIVER- Assistance prohibited by this section may be furnished to
the government of a foreign country described in subsection (a) if the
President determines that furnishing such assistance is important to the
national security interests of the United States, furthers the goals described
in this Act, and, not later that 15 days before obligating such assistance,
notifies the Committee on International Relations of the House of Representatives,
the Committee on Foreign Relations of the Senate, the Committee on Appropriations
of the House of Representatives, and the Committee on Appropriations of
the Senate of such determination and submits to such committees a report
that includes--
(A) a statement of the determination;
(B) a detailed explanation of the assistance to be provided;
(C) the estimated dollar amount of the assistance; and
(D) an explanation of how the assistance furthers United States national
security interests.
SEC. 302. STRENGTHENING THE NUCLEAR NONPROLIFERATION TREATY.
(a) Findings- Congress finds the following:
(1) Article IV of the Treaty on the Non-Proliferation of Nuclear Weapons
(commonly referred to as the `Nuclear Nonproliferation Treaty' or `NPT')
states that countries that are parties to the Treaty have the `inalienable
right . . . to develop research, production and use of nuclear energy
for peaceful purposes without discrimination and in conformity with articles
I and II of this Treaty.'.
(2) Iran has manipulated Article IV of the Nuclear Nonproliferation Treaty
to acquire technologies needed to manufacture nuclear weapons under the
guise of developing peaceful nuclear technology.
(3) Legal authorities, diplomatic historians, and officials closely involved
in the negotiation and ratification of the Nuclear Nonproliferation Treaty
state that the Treaty neither recognizes nor protects such a per se right
to all nuclear technology, such as enrichment and reprocessing, but rather
affirms that the right to the use of peaceful nuclear energy is qualified.
(b) Declaration of Congress Regarding United States Policy to Strengthen
the Nuclear Nonproliferation Treaty- Congress declares that it should be
the policy of the United States to support diplomatic efforts to end the
manipulation of Article IV of the Nuclear Nonproliferation Treaty, as undertaken
by Iran, without undermining the Treaty itself.
TITLE IV--DEMOCRACY IN IRAN
SEC. 401. DECLARATION OF CONGRESS REGARDING UNITED STATES POLICY TOWARD
IRAN.
(a) In General- Congress declares that it should be the policy of the United
States to support independent human rights and peaceful pro-democracy forces
in Iran.
(b) Rule of Construction- Nothing in this Act shall be construed as authorizing
the use of force against Iran.
SEC. 402. ASSISTANCE TO SUPPORT DEMOCRACY IN IRAN.
(1) IN GENERAL- The President is authorized to provide financial and political
assistance (including the award of grants) to foreign and domestic individuals,
organizations, and entities that support democracy and the promotion of
democracy in Iran. Such assistance may include the award of grants to
eligible independent pro-democracy radio and television broadcasting organizations
that broadcast into Iran.
(2) LIMITATION ON ASSISTANCE- In accordance with the rule of construction
described in subsection (b) of section 401, none of the funds authorized
under this section shall be used to support the use of force against Iran.
(b) Eligibility for Assistance- Financial and political assistance under
this section may be provided only to an individual, organization, or entity
that--
(1) officially opposes the use of violence and terrorism and has not been
designated as a foreign terrorist organization under section 219 of the
Immigration and Nationality Act (8 U.S.C. 1189) at any time during the
preceding four years;
(2) advocates the adherence by Iran to nonproliferation regimes for nuclear,
chemical, and biological weapons and materiel;
(3) is dedicated to democratic values and supports the adoption of a democratic
form of government in Iran;
(4) is dedicated to respect for human rights, including the fundamental
equality of women;
(5) works to establish equality of opportunity for people; and
(6) supports freedom of the press, freedom of speech, freedom of association,
and freedom of religion.
(c) Funding- The President may provide assistance under this section using--
(1) funds available to the Middle East Partnership Initiative (MEPI),
the Broader Middle East and North Africa Initiative, and the Human Rights
and Democracy Fund; and
(2) amounts made available pursuant to the authorization of appropriations
under subsection (g).
(d) Notification- Not later than 15 days before each obligation of assistance
under this section, and in accordance with the procedures under section
634A of the Foreign Assistance Act of 1961 (22 U.S.C. 2394-l), the President
shall notify the Committee on International Relations and the Committee
on Appropriations of the House of Representatives and the Committee on Foreign
Relations and the Committee on Appropriations of the Senate. Such notification
shall include, as practicable, the types of programs supported by such assistance
and the recipients of such assistance.
(e) Sense of Congress Regarding Diplomatic Assistance- It is the sense of
Congress that--
(1) contacts should be expanded with opposition groups in Iran that meet
the criteria under subsection (b);
(2) support for a transition to democracy in Iran should be expressed
by United States representatives and officials in all appropriate international
fora;
(3) efforts to bring a halt to the nuclear weapons program of Iran, including
steps to end the supply of nuclear components or fuel to Iran, should
be intensified, with particular attention focused on the cooperation regarding
such program--
(A) between the Government of Iran and the Government of the Russian
Federation; and
(B) between the Government of Iran and individuals from China and Pakistan,
including the network of Dr. Abdul Qadeer (A. Q.) Khan; and
(4) officials and representatives of the United States should--
(A) strongly and unequivocally support indigenous efforts in Iran calling
for free, transparent, and democratic elections; and
(B) draw international attention to violations by the Government of
Iran of human rights, freedom of religion, freedom of assembly, and
freedom of the press.
(f) Authorization of Appropriations- There is authorized to be appropriated
to the Department of State such sums as may be necessary to carry out this
section.
SEC. 403. WAIVER OF CERTAIN EXPORT LICENSE REQUIREMENTS.
The Secretary of State may, in consultation with the Secretary of Commerce,
waive the requirement to obtain a license for the export to, or by, any
person to whom the Department of State has provided a grant under a program
to promote democracy or human rights abroad, any item which is commercially
available in the United States without government license or permit, to
the extent that such export would be used exclusively for carrying out the
purposes of the grant.
Passed the House of Representatives April 26, 2006.
Attest:
KAREN L. HAAS,
Clerk.
END
