To make amendments to the Iran Nonproliferation Act of 2000.

November 8, 2005

Mr. FEINGOLD (for himself and Mr. KYL) introduced the following bill; which was read twice and referred to the Committee on Foreign Relations

To make amendments to the Iran Nonproliferation Act of 2000.

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 Nonproliferation Enforcement Act of 2005'.

SEC. 2. SANCTIONS APPLICABLE UNDER THE IRAN NONPROLIFERATION ACT OF 2000.

(a) Application of Certain Measures- Section 3 of the Iran Nonproliferation Act of 2000 (50 U.S.C. 1701 note) is amended--

(1) by amending subsection (a) to read as follows:

`(a) Application of Measures- Subject to sections 4 and 5, the President shall apply, for a period of not less than 2 years, the measures described in subsection (b) with respect to--

`(1) each foreign person identified in a report submitted pursuant to section 2(a);

`(2) all successors, subunits, and subsidiaries of each such foreign person; and

`(3) any entity (if operating as a business enterprise) that owns more than 50 percent of, or controls in fact, any such foreign person and any successors, subunits, and subsidiaries of such entity.';

(2) in subsection (b)--

(A) by amending paragraph (1) to read as follows:

`(1) EXECUTIVE ORDER NO. 12938 PROHIBITIONS- The measures set forth in subsections (b), (c), and (d) of section 4 of Executive Order 12938.';

(B) in paragraph (2)--

(i) by striking `to that foreign person'; and

(ii) by striking `to that person';

(C) in paragraph (3), by striking `to that person'; and

(D) by adding at the end the following new paragraphs:

`(4) INVESTMENT PROHIBITION- Prohibition of any new investment by a United States person in property, including entities, owned or controlled by--

`(A) that foreign person;

`(B) any entity (if operating as a business enterprise) that owns more than 50 percent of, or controls in fact, such foreign person; or

`(C) any successor, subunit, or subsidiary of such entity.

`(5) FINANCING PROHIBITION- Prohibition of any approval, financing, or guarantee by a United States person, wherever located, of a transaction by--

`(A) that foreign person;

`(B) any entity (if operating as a business enterprise) that owns more than 50 percent of, or controls in fact, such foreign person; or

`(C) any successor, subunit, or subsidiary of such entity.

`(6) FINANCIAL ASSISTANCE PROHIBITION- Denial by the United States Government of any credit, credit guarantees, grants, or other financial assistance by any department, agency, or instrumentality of the United States Government to--

`(A) that foreign person;

`(B) any entity (if operating as a business enterprise) that owns more than 50 percent of, or controls in fact, such foreign person; and

`(C) any successor, subunit, or subsidiary of such entity.'; and

(3) by amending subsection (d) to read as follows:

`(d) Publication in Federal Register-

`(1) IN GENERAL- The application of measures pursuant to subsection (a) shall be announced by notice published in the Federal Register.

`(2) CONTENT- Each notice published pursuant to paragraph (1) shall include the name and address (where known) of each person or entity to whom measures have been applied pursuant to subsection (a).'.

(b) National Security Waiver- Section 4 of such Act is amended to read as follows:

`SEC. 4. WAIVER ON BASIS OF NATIONAL SECURITY.

`(a) In General- The President may waive the imposition of any sanction that would otherwise be required under section 3 on any person or entity 15 days after the President determines and reports to the Committee on International Relations of the House of Representatives and the Committee on Foreign Relations of the Senate that such waiver is essential to the national security of the United States.

`(b) Written Justification- The determination and report of the President under subsection (a) shall include a written justification--

`(1) describing in detail the circumstances and rationale supporting the President's conclusion that the waiver is essential to the national security of the United States; and

`(2) identifying--

`(A) the name and address (where known) of the person or entity to whom the waiver is applied pursuant to subsection (a);

`(B) the specific goods, services, or technologies, the transfer of which would have required the imposition of measures pursuant to section 3 if the President had not invoked the waiver authority under subsection (a); and

`(C) the name and address (where known) of the recipient of such transfer.

`(c) Form- The written justification shall be submitted in unclassified form, but may contain a classified annex.'.

END