An Act To impose sanctions on persons making
certain investments directly and significantly contributing to
the enhancement of the ability of Iran or Libya to develop its
petroleum resources, and on persons exporting certain items that
enhance Libya's weapons or aviation capabilities or enhance Libya's
ability to develop its petroleum resources, and for other purposes.
Be it enacted by the Senate and House of Representatives
of the United States of America in Congress assembled,
SEC. 1. SHORT TITLE.
This Act may be cited as the `Iran and Libya
Sanctions Act of 1996'.
SEC. 2. FINDINGS.
The Congress makes the following findings:
(1) The efforts of the Government of Iran to acquire
weapons of mass destruction and the means to deliver them and
its support of acts of international terrorism endanger the national
security and foreign policy interests of the United States and
those countries with which the United States shares common strategic
and foreign policy objectives.
(2) The objective of preventing the proliferation
of weapons of mass destruction and acts of international terrorism
through existing multilateral and bilateral initiatives requires
additional efforts to deny Iran the financial means to sustain
its nuclear, chemical, biological, and missile weapons programs.
(3) The Government of Iran uses its diplomatic
facilities and quasi-governmental institutions outside of Iran
to promote acts of international terrorism and assist its nuclear,
chemical, biological, and missile weapons programs.
-
(4) The failure of the Government of Libya to
comply with Resolutions 731, 748, and 883 of the Security Council
of the United Nations, its support of international terrorism,
and its efforts to acquire weapons of mass destruction constitute
a threat to international peace and security that endangers the
national security and foreign policy interests of the United States
and those countries with which it shares common strategic and
foreign policy objectives.
SEC. 3. DECLARATION OF POLICY.
(a) POLICY WITH RESPECT TO IRAN- The Congress
declares that it is the policy of the United States to deny Iran
the ability to support acts of international terrorism and to
fund the development and acquisition of weapons of mass destruction
and the means to deliver them by limiting the development of Iran's
ability to explore for, extract, refine, or transport by pipeline
petroleum resources of Iran.
(b) POLICY WITH RESPECT TO LIBYA- The Congress
further declares that it is the policy of the United States to
seek full compliance by Libya with its obligations under Resolutions
731, 748, and 883 of the Security Council of the United Nations,
including ending all support for acts of international terrorism
and efforts to develop or acquire weapons of mass destruction.
SEC. 4. MULTILATERAL REGIME.
(a) MULTILATERAL NEGOTIATIONS- In order to further
the objectives of section 3, the Congress urges the President
to commence immediately diplomatic efforts, both in appropriate
international fora such as the United Nations, and bilaterally
with allies of the United States, to establish a multilateral
sanctions regime against Iran, including provisions limiting the
development of petroleum resources, that will inhibit Iran's efforts
to carry out activities described in section 2.
(b) REPORTS TO CONGRESS- The President shall report
to the appropriate congressional committees, not later than 1
year after the date of the enactment of this Act, and periodically
thereafter, on the extent that diplomatic efforts described in
subsection (a) have been successful. Each report shall include:
(1) the countries that have agreed to undertake
measures to further the objectives of section 3 with respect to
Iran, and a description of those measures; and
(2) the countries that have not agreed to measures
described in paragraph (1), and, with respect to those countries,
other measures (in addition to that provided in subsection (d))
the President recommends that the United States take to further
the objectives of section 3 with respect to Iran.
(c) WAIVER- The President may waive the application
of section 5(a) with respect to nationals of a country if:
(1) that country has agreed to undertake substantial
measures, including economic sanctions, that will inhibit Iran's
efforts to carry out activities described in section 2 and information
required by subsection (b)(1) has been included in a report submitted
under subsection (b); and
(2) the President, at least 30 days before the
waiver takes effect, notifies the appropriate congressional committees
of his intention to exercise the waiver.
(d) ENHANCED SANCTION
(1) SANCTION- With respect to nationals
of countries except those with respect to which the President
has exercised the waiver authority of subsection (c), at any time
after the first report is required to be submitted under subsection
(b), section 5(a) shall be applied by substituting `$20,000,000'
for `$40,000,000' each place it appears, and by substituting `$5,000,000'
for `$10,000,000'.
(2) REPORT TO CONGRESS- The President
shall report to the appropriate congressional committees any country
with respect to which paragraph (1) applies.
(e) INTERIM REPORT ON MULTILATERAL SANCTIONS;
MONITORING- The President, not later than 90 days after the date
of the enactment of this Act, shall report to the appropriate
congressional committees on:
(1) whether the member states of the European
Union, the Republic of Korea, Australia, Israel, or Japan have
legislative or administrative standards providing for the imposition
of trade sanctions on persons or their affiliates doing business
or having investments in Iran or Libya;
(2) the extent and duration of each instance of
the application of such sanctions; and
(3) the disposition of any decision with respect
to such sanctions by the World Trade Organization or its predecessor
organization.
SEC. 5. IMPOSITION OF SANCTIONS.
(a) SANCTIONS WITH RESPECT TO IRAN- Except as
provided in subsection (f), the President shall impose 2 or more
of the sanctions described in paragraphs (1) through (6) of section
6 if the President determines that a person has, with actual knowledge,
on or after the date of the enactment of this Act, made an investment
of $40,000,000 or more (or any combination of investments of at
least $10,000,000 each, which in the aggregate equals or exceeds
$40,000,000 in any 12-month period), that directly and significantly
contributed to the enhancement of Iran's ability to develop petroleum
resources of Iran.
(b) MANDATORY SANCTIONS WITH RESPECT TO LIBYA-
(1) VIOLATIONS OF PROHIBITED TRANSACTIONS- Except
as provided in subsection (f), the President shall impose 2 or
more of the sanctions described in paragraphs (1) through (6)
of section 6 if the President determines that a person has, with
actual knowledge, on or after the date of the enactment of this
Act, exported, transferred, or otherwise provided to Libya any
goods, services, technology, or other items the provision of which
is prohibited under paragraph 4(b) or 5 of Resolution 748 of the
Security Council of the United Nations, adopted March 31, 1992,
or under paragraph 5 or 6 of Resolution 883 of the Security Council
of the United Nations, adopted November 11, 1993, if the provision
of such items significantly and materially:
(A) contributed to Libya's ability to acquire
chemical, biological, or nuclear weapons or destabilizing numbers
and types of advanced conventional weapons or enhanced Libya's
military or paramilitary capabilities;
(B) contributed to Libya's ability to develop
its petroleum resources; or
(C) contributed to Libya's ability to maintain
its aviation capabilities.
(2) INVESTMENTS THAT CONTRIBUTE TO THE DEVELOPMENT
OF PETROLEUM RESOURCES- Except as provided in subsection (f),
the President shall impose 2 or more of the sanctions described
in paragraphs (1) through (6) of section 6 if the President determines
that a person has, with actual knowledge, on or after the date
of the enactment of this Act, made an investment of $40,000,000
or more (or any combination of investments of at least $10,000,000
each, which in the aggregate equals or exceeds $40,000,000 in
any 12-month period), that directly and significantly contributed
to the enhancement of Libya's ability to develop its petroleum
resources.
(c) PERSONS AGAINST WHICH THE SANCTIONS ARE TO
BE IMPOSED- The sanctions described in subsections (a) and (b)
shall be imposed on:
(1) any person the President determines has carried
out the activities described in subsection (a) or (b); and
(2) any person the President determines:
(A) is a successor entity to the person referred
to in paragraph (1);
(B) is a parent or subsidiary of the person referred
to in paragraph (1) if that parent or subsidiary, with actual
knowledge, engaged in the activities referred to in paragraph
(1); or
(C) is an affiliate of the person referred to
in paragraph (1) if that affiliate, with actual knowledge, engaged
in the activities referred to in paragraph (1) and if that affiliate
is controlled in fact by the person referred to in paragraph (1).
For purposes of this Act, any person or entity
described in this subsection shall be referred to as a `sanctioned
person'.
(d) PUBLICATION IN FEDERAL REGISTER- The President
shall cause to be published in the Federal Register a current
list of persons and entities on whom sanctions have been imposed
under this Act. The removal of persons or entities from, and the
addition of persons and entities to, the list, shall also be so
published.
(e) PUBLICATION OF PROJECTS- The President shall
cause to be published in the Federal Register a list of all significant
projects which have been publicly tendered in the oil and gas
sector in Iran.
(f) EXCEPTIONS- The President shall not be required
to apply or maintain the sanctions under subsection (a) or (b):
(1) in the case of procurement of defense articles
or defense services:
(A) under existing contracts or subcontracts,
including the exercise of options for production quantities to
satisfy requirements essential to the national security of the
United States;
(B) if the President determines in writing that
the person to which the sanctions would otherwise be applied is
a sole source supplier of the defense articles or services, that
the defense articles or services are essential, and that alternative
sources are not readily or reasonably available; or
(C) if the President determines in writing that
such articles or services are essential to the national security
under defense coproduction agreements;
(2) in the case of procurement, to eligible products,
as defined in section 308(4) of the Trade Agreements Act of 1979
(19 U.S.C. 2518(4)), of any foreign country or instrumentality
designated under section 301(b)(1) of that Act (19 U.S.C. 2511(b)(1));
(3) to products, technology, or services provided
under contracts entered into before the date on which the President
publishes in the Federal Register the name of the person on whom
the sanctions are to be imposed;
(4) to (A) spare parts which are essential to
United States products or production; (B) component parts, but
not finished products, essential to United States products or
production; or (C) routine servicing and maintenance of products,
to the extent that alternative sources are not readily or reasonably
available;
(6) to information and technology essential to
United States products or production; or
(7) to medicines, medical supplies, or other humanitarian
items.
SEC. 6. DESCRIPTION OF SANCTIONS.
The sanctions to be imposed on a sanctioned person
under section 5 are as follows:
(1) EXPORT-IMPORT BANK ASSISTANCE FOR EXPORTS
TO SANCTIONED PERSONS- The President may direct the Export-Import
Bank of the United States not to give approval to the issuance
of any guarantee, insurance, extension of credit, or participation
in the extension of credit in connection with the export of any
goods or services to any sanctioned person.
(2) EXPORT SANCTION- The President may order the
United States Government not to issue any specific license and
not to grant any other specific permission or authority to export
any goods or technology to a sanctioned person under:
(i) the Export Administration Act of 1979;
(ii) the Arms Export Control Act;
(iii) the Atomic Energy Act of 1954; or
(iv) any other statute that requires the prior
review and approval of the United States Government as a condition
for the export or reexport of goods or services.
(3) LOANS FROM UNITED STATES FINANCIAL INSTITUTIONS-
The United States Government may prohibit any United States financial
institution from making loans or providing credits to any sanctioned
person totaling more than $10,000,000 in any 12-month period unless
such person is engaged in activities to relieve human suffering
and the loans or credits are provided for such activities.
(4) PROHIBITIONS ON FINANCIAL INSTITUTIONS- The
following prohibitions may be imposed against a sanctioned person
that is a financial institution:
(A) PROHIBITION ON DESIGNATION AS PRIMARY DEALER-
Neither the Board of Governors of the Federal Reserve System nor
the Federal Reserve Bank of New York may designate, or permit
the continuation of any prior designation of, such financial institution
as a primary dealer in United States Government debt instruments.
(B) PROHIBITION ON SERVICE AS A REPOSITORY OF
GOVERNMENT FUNDS- Such financial institution may not serve as
agent of the United States Government or serve as repository for
United States Government funds. The imposition of either sanction
under subparagraph (A) or (B) shall be treated as 1 sanction for
purposes of section 5, and the imposition of both such sanctions
shall be treated as 2 sanctions for purposes of section 5.
(5) PROCUREMENT SANCTION- The United States Government
may not procure, or enter into any contract for the procurement
of, any goods or services from a sanctioned person.
(6) ADDITIONAL SANCTIONS- The President may impose
sanctions, as appropriate, to restrict imports with respect to
a sanctioned person, in accordance with the International Emergency
Economic Powers Act (50 U.S.C. 1701 and following).
SEC. 7. ADVISORY OPINIONS.
The Secretary of State may, upon the request of
any person, issue an advisory opinion to that person as to whether
a proposed activity by that person would subject that person to
sanctions
under this Act. Any person who relies in good
faith on such an advisory opinion which states that the proposed
activity would not subject a person to such sanctions, and any
person who thereafter engages in such activity, will not be made
subject to such sanctions on account of such activity.
SEC. 8. TERMINATION OF SANCTIONS.
(a) IRAN- The requirement under section 5(a) to
impose sanctions shall no longer have force or effect with respect
to Iran if the President determines and certifies to the appropriate
congressional committees that Iran:
(1) has ceased its efforts to design, develop,
manufacture, or acquire:
(A) a nuclear explosive device or related materials
and technology;
(B) chemical and biological weapons; and
(C) ballistic missiles and ballistic missile
launch technology; and
(2) has been removed from the list of countries
the governments of which have been determined, for purposes of
section 6(j) of the Export Administration Act of 1979, to have
repeatedly provided support for acts of international terrorism.
(b) LIBYA- The requirement under section 5(b)
to impose sanctions shall no longer have force or effect with
respect to Libya if the President determines and certifies to
the appropriate congressional committees that Libya has fulfilled
the requirements of United Nations Security Council Resolution
731, adopted January 21, 1992, United Nations Security Council
Resolution 748, adopted March 31, 1992, and United Nations Security
Council Resolution 883, adopted November 11, 1993.
SEC. 9. DURATION OF SANCTIONS; PRESIDENTIAL
WAIVER.
(a) DELAY OF SANCTIONS:
(1) CONSULTATIONS- If the President makes a determination
described in section 5(a) or 5(b) with respect to a foreign person,
the Congress urges the President to initiate consultations immediately
with the government with primary jurisdiction over that foreign
person with respect to the imposition of sanctions under this
Act.
(2) ACTIONS BY GOVERNMENT OF JURISDICTION- In
order to pursue consultations under paragraph (1) with the government
concerned, the President may delay imposition of sanctions under
this Act for up to 90 days. Following such consultations, the
President shall immediately impose sanctions unless the President
determines and certifies to the Congress that the government has
taken specific and effective actions, including, as appropriate,
the imposition of appropriate penalties, to terminate the involvement
of the foreign person in the activities that resulted in the determination
by the President under section 5(a) or 5(b) concerning such person.
(3) ADDITIONAL DELAY IN IMPOSITION OF SANCTIONS-
The President may delay the imposition of sanctions for up to
an additional 90 days if the President determines and certifies
to the Congress that the government with primary jurisdiction
over the person concerned is in the process of taking the actions
described in paragraph (2).
(4) REPORT TO CONGRESS- Not later than 90 days
after making a determination under section 5(a) or 5(b), the President
shall submit to the appropriate congressional committees a report
on the status of consultations with the appropriate foreign government
under this subsection, and the basis for any determination under
paragraph (3).
(b) DURATION OF SANCTIONS- A sanction imposed
under section 5 shall remain in effect: (1) for a period of not
less than 2 years from the date on which it is imposed; or (2)
until such time as the President determines and certifies to the
Congress that the person whose activities were the basis for imposing
the sanction is no longer engaging in such activities and that
the President has received reliable assurances that such person
will not knowingly engage in such activities in the future, except
that such sanction shall remain in effect for a period of at least
1 year.
(c) PRESIDENTIAL WAIVER.
(1) AUTHORITY- The President may waive the requirement
in section 5 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 important to the national
interest of the United States to exercise such waiver authority.
(2) CONTENTS OF REPORT- Any report under paragraph
(1) shall provide a specific and detailed rationale for the determination
under paragraph (1), including:
(A) a description of the conduct that resulted
in the determination under section 5(a) or (b), as the case may
be;
(B) in the case of a foreign person, an explanation
of the efforts to secure the cooperation of the government with
primary jurisdiction over the sanctioned person to terminate or,
as appropriate, penalize the activities that resulted in the determination
under section 5(a) or (b), as the case may be;
(C) an estimate as to the significance:
(i) of the provision of the items
described in section 5(a) to Iran's ability to develop its petroleum
resources, or
(ii) of the provision of the items
described in section 5(b)(1) to the abilities of Libya described
in subparagraph (A), (B), or (C) of section 5(b)(1), or of the
investment described in section 5(b)(2) on Libya's ability to
develop its petroleum resources, as the case may be; and (D) a
statement as to the response of the United States in the event
that the person concerned engages in other activities that would
be subject to section 5(a) or (b).
(3) EFFECT OF REPORT ON WAIVER- If the President
makes a report under paragraph (1) with respect to a waiver of
sanctions on a person described in section 5(c), sanctions need
not be imposed under section 5(a) or (b) on that person during
the 30-day period referred to in paragraph (1).
SEC. 10. REPORTS REQUIRED.
(a) REPORT ON CERTAIN INTERNATIONAL INITIATIVES-
Not later than 6 months after the date of the enactment of this
Act, and every 6 months thereafter, the President shall transmit
a report to the appropriate congressional committees describing:
(1) the efforts of the President to mount a multilateral
campaign to persuade all countries to pressure Iran to cease its
nuclear, chemical, biological, and missile weapons programs and
its support of acts of international terrorism;
(2) the efforts of the President to persuade other
governments to ask Iran to reduce the presence of Iranian diplomats
and representatives of other government and military or quasi-governmental
institutions of Iran and to withdraw any such diplomats or representatives
who participated in the takeover of the United States embassy
in Tehran on November 4, 1979, or the subsequent holding of United
States hostages for 444 days;
(3) the extent to which the International Atomic
Energy Agency has established regular inspections of all nuclear
facilities in Iran, including those presently under construction;
and
(4) Iran's use of Iranian diplomats and representatives
of other government and military or quasi-governmental institutions
of Iran to promote acts of international terrorism or to develop
or sustain Iran's nuclear, chemical, biological, and missile weapons
programs.
(b) OTHER REPORTS- The President shall ensure
the continued transmittal to the Congress of reports describing:
(1) the nuclear and other military capabilities
of Iran, as required by section 601(a) of the Nuclear Non-Proliferation
Act of 1978 and section 1607 of the National Defense Authorization
Act for Fiscal Year 1993; and
(2) the support provided by Iran for acts of international
terrorism, as part of the Department of State's annual report
on international terrorism.
SEC. 11. DETERMINATIONS NOT REVIEWABLE.
A determination to impose sanctions under this
Act shall not be reviewable in any court.
SEC. 12. EXCLUSION OF CERTAIN ACTIVITIES.
Nothing in this Act shall apply to any activities
subject to the reporting requirements of Title V of the National
Security Act of 1947.
SEC. 13. EFFECTIVE DATE; SUNSET.
(a) EFFECTIVE DATE- This Act shall take effect
on the date of the enactment of this Act.
(b) SUNSET- This Act shall cease to be effective
on the date that is 5 years after the date of the enactment of
this Act.
SEC. 14. DEFINITIONS.
As used in this Act:
(1) ACT OF INTERNATIONAL TERRORISM- The term `act
of international terrorism' means an act: (A) which is violent
or dangerous to human life and that is a violation of the criminal
laws of the United States or of any State or that would be a criminal
violation if committed within the jurisdiction of the United States
or any State; and (B) which appears to be intended:
(i) to intimidate or coerce a civilian population;
(ii) to influence the policy of a government by
intimidation or coercion; or
(iii) to affect the conduct of a government by
assassination or kidnapping.
(2) APPROPRIATE CONGRESSIONAL COMMITTEES- The
term `appropriate congressional committees' means the Committee
on Finance, the Committee on Banking, Housing, and Urban Affairs,
and the Committee on Foreign Relations of the Senate and the Committee
on Ways and Means, the Committee on Banking and Financial Services,
and the Committee on International Relations of the House of Representatives.
(3) COMPONENT PART- The term `component part'
has the meaning given that term in section 11A(e)(1) of the Export
Administration Act of 1979 (50 U.S.C. App. 2410a(e)(1)).
(4) DEVELOP AND DEVELOPMENT- To `develop', or
the `development' of, petroleum resources means the exploration
for, or the extraction, refining, or transportation by pipeline
of, petroleum resources.
(5) FINANCIAL INSTITUTION- The term `financial
institution' includes:
(A) a depository institution (as defined in section
3(c)(1) of the Federal Deposit Insurance Act), including a branch
or agency of a foreign bank (as defined in section 1(b)(7) of
the International Banking Act of 1978);
(B) a credit union;
(C) a securities firm, including a broker or dealer;
(D) an insurance company, including an agency
or underwriter; and
(E) any other company that provides financial
services.
(6) FINISHED PRODUCT- The term `finished product'
has the meaning given that term in section 11A(e)(2) of the Export
Administration Act of 1979 (50 U.S.C. App. 2410a(e)(2)).
(7) FOREIGN PERSON- The term `foreign person'
means:
(A) an individual who is not a United States person
or an alien lawfully admitted for permanent residence into theUnited
States; or
(B) a corporation, partnership, or other nongovernmental
entity which is not a United States person.
(8) GOODS AND TECHNOLOGY- The terms `goods' and
`technology' have the meanings given those terms in section 16
of the Export Administration Act of 1979 (50 U.S.C. App. 2415).
(9) INVESTMENT- The term `investment' means any
of the following activities if such activity is undertaken pursuant
to an agreement, or pursuant to the exercise of rights under such
an agreement, that is entered into with the Government of Iran
or a nongovenmental entity in Iran, or with the Government of
Libya or a nongovernmental entity in Libya, on or after the date
of the enactment of this Act:
(A) The entry into a contract that includes responsibility
for the development of petroleum resources located in Iran or
Libya (as the case may be), or the entry into a contract providing
for the general supervision and guarantee of another person's
performance of such a contract.
(B) The purchase of a share of ownership, including
an equity interest, in that development.
(C) The entry into a contract providing for the
participation in royalties, earnings, or profits in that development,
without regard to the form of the participation.
The term `investment' does not include the entry
into, performance, or financing of a contract to sell or purchase
goods, services, or technology.
(10) IRAN- The term `Iran' includes any agency
or instrumentality of Iran.
(11) IRANIAN DIPLOMATS AND REPRESENTATIVES OF
OTHER GOVERNMENT AND MILITARY OR QUASI-GOVERNMENTAL INSTITUTIONS
OF IRAN- The term `Iranian diplomats and representatives of other
government and military or quasi-governmental institutions of
Iran' includes employees, representatives, or affiliates of Iran's:
(A) Foreign Ministry;
(B) Ministry of Intelligence and Security;
(C) Revolutionary Guard Corps;
(D) Crusade for Reconstruction;
(E) Qods (Jerusalem) Forces;
(F) Interior Ministry;
(G) Foundation for the Oppressed and Disabled;
(H) Prophet's Foundation;
(I) June 5th Foundation;
(J) Martyr's Foundation;
(K) Islamic Propagation Organization; and
(L) Ministry of Islamic Guidance.
(12) LIBYA- The term `Libya' includes any agency
or instrumentality of Libya.
(13) 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 (as defined in
section 11(aa) of the Atomic Energy Act of 1954) that is greater
than the amount of energy that would be released from the detonation
of one pound of trinitrotoluene (TNT).
(14) PERSON- The term `person' means:
(A) a natural person;
(B) a corporation, business association, partnership,
society, trust, any other nongovernmental entity, organization,
or group, and any governmental entity operating as a business
enterprise; and
(C) any successor to any entity described in subparagraph
(B).
(15) PETROLEUM RESOURCES- The term `petroleum
resources' includes petroleum and natural gas resources.
(16) UNITED STATES OR STATE- The term `United
States' or `State' means the several States, the District of Columbia,
the Commonwealth of Puerto Rico, the Commonwealth of the Northern
Mariana Islands, American Samoa, Guam, the United States Virgin
Islands, and any other territory or possession of the United States.
(17) UNITED STATES PERSON- The term `United States
person' means:
(A) a natural person who is a citizen of the United
States or who owes permanent allegiance to the United States;
and
(B) a corporation or other legal entity which
is organized under the laws of the United States, any State or
territory thereof, or the District of Columbia, if natural persons
described in subparagraph (A) own, directly or indirectly, more
than 50 percent of the outstanding capital stock or other beneficial
interest in such legal entity.
Speaker of the House of Representatives. Vice
President of the United States and President of the Senate.
