| H.R.3107
Iran and Libya Sanctions Act of 1996 (Enrolled Bill (Sent to President))
One Hundred Fourth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Wednesday,
the third day of January, one thousand nine hundred and ninety-six
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,
SECTION 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 the
United 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.
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