H.R. 850 — what changed

added “(a) Finding and sense of Congress

added “(1) Finding—Congress finds that Iranian persons holding the following positions in the Government of Iran are ultimately responsible for and have and continue to knowingly order, control, direct and implement gross violations of the human rights of the Iranian people, the human rights of persons in other countries, censorship, and the diversion of food, medicine, medical devices, agricultural commodities and other goods intended for the Iranian people:

added “(A) The Supreme Leader of Iran.

added “(B) The President of Iran.

added “(C) Members of the Council of Guardians.

added “(D) Members of the Expediency Council.

added “(E) The Minister of Intelligence and Security.

added “(F) The Commander of the Iran’s Revolutionary Guard Corps.

added “(G) The Commander of the Basij-e-Mostaz’afin.

added “(H) The Commander of Ansar-e-Hezbollah.

added “(I) The Commander of the Quds Force.

added “(J) The Commander in Chief of the Police Force.

added “(K) Senior officials or key employees of an organization described in any of subparagraphs (C) through (J) or in the Atomic Energy Organization of Iran, the Islamic Consultative Assembly of Iran, the Council of Ministers of Iran, the Assembly of Experts of Iran, the Ministry of Defense and Armed Forces Logistics of Iran, the Ministry of Justice of Iran, the Ministry of Interior of Iran, the prison system of Iran, or the judicial system of Iran.

added “(2) Sense of Congress—It is the sense of Congress that—

added “(A) the President should include any Iranian person holding a position in the Government of Iran described in paragraph (1) on one or more of the lists of persons subject to sanctions pursuant to section 105(b), 105A(b), 105B(b), or 105C(b) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8514(b), 8514a(b), 8514b(b), or 8514c(b)); and

added “(B) the President should impose sanctions on such Iranian person pursuant to section 105, 105A, 105B, or 105C of such Act (as the case may be).”

added “(b) Additional finding and sense of Congress

added “(1) Finding—Congress finds that other senior officials of the Government of Iran, its agencies and instrumentalities, also have and continue to knowingly order, control, direct, and implement gross violations of the human rights of the Iranian people and the human rights of persons in other countries.

added “(2) Sense of Congress—It is the sense of Congress that—

added “(A) the President should investigate violations of human rights described in paragraph (1) to identify other senior officials of the Government of Iran that also have or continue to knowingly order, control, direct, and implement gross violations of human rights of the Iranian people and the human rights of persons in other countries;

added “(B) the President should include any such official on one or more of the lists of persons subject to sanctions pursuant to section 105(b), 105A(b), 105B(b), or 105C(b) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8514(b), 8514a(b), 8514b(b), or 8514c(b)); and

added “(C) the President should impose sanctions on any such official pursuant to section 105, 105A, 105B, or 105C of such Act (as the case may be).”

added “(A) In general—Not later than”

added “(i) the commission of”

added “(ii) censorship or related activities with respect to Iran; or

added “(iii) the diversion of goods, food, medicine, medical devices, and agricultural commodities, intended for the people of Iran.”

added “(B) Requirement relating to persons not included—For any such person”

added “(C) Requirement relating to financial net worth—For each such person described in subparagraph (A) and each such person described in subparagraph (B), the Secretary of State shall include in the report a description of the estimated net worth of the person.”

added It is the sense of Congress that the Secretary of State should designate a Special Coordinator position in the Bureau of Near Eastern Affairs whose primary function is to facilitate cooperation across departments for the purpose of advancing human rights and political participation for women in Iran, as well as to prepare evidence and information to be used in identifying Iranian officials for designation as human rights violators for their involvement in violating the human rights of women in Iran.

added “(1) with a person”

added “(2) with respect to a person acting on behalf of or at the direction of, or owned or controlled by, a person described in paragraph (1) or a person who owns or controls a person described in paragraph (1).”

added “(e) Presidential determination and imposition of additional sanctions—The President shall impose 5 or more of the sanctions described in section 6(a) of the Iran Sanctions Act of 1996 (Public Law 104–172; 50 U.S.C. 1701 note) with respect to—

added “(1) a person if the President determines that the person knowingly exports sensitive technology to Iran; or

added “(2) a person acting on behalf of or at the direction of, or owned or controlled by, a person described in paragraph (1) or a person who owns or controls a person described in paragraph (1).”

added “(a) Sense of congress—It is the sense of Congress that the United States should support the decision of any State or local government to divest from or prohibit the investment of assets of the State or local government, to prohibit the issuance of licenses to conduct business in the State or locality to, and to impose disclosure and transparency requirements on, a person that invests in or conducts transactions for or with a person or sector subject to sanctions with respect to Iran.

added “(b) Authority—Notwithstanding any other provision of law, a State or local government may adopt and enforce measures that meet the requirements of subsection (d)—

added “(1) to divest the assets of the State or local government from a person described in subsection (c);

added “(2) to prohibit investment of the assets of the State or local government in any such person;

added “(3) to prohibit the issuance of licenses to conduct business in the State or locality to any such person; or

added “(4) to impose disclosure and transparency requirements on any such person.

added “(c) Persons described—A person described in this subsection is a person that invests in or engages in any transaction with or for any person engaged in any activity for which sanctions may be imposed under any provision of Federal law imposing sanctions with respect to Iran.”

added “220A. Imposition of sanctions with respect to certain transactions in foreign currencies

added “(a) In general—The President—

added “(1) shall prohibit the opening, and prohibit or impose strict conditions on the maintaining, in the United States of a correspondent account or a payable-through account by a foreign financial institution that is a person described in subsection (b); and

added “(2) may impose sanctions pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) with respect to any other person described in subsection (b).

added “(b) Person described—A person described in this subsection is a person the President determines has—

added “(1) knowingly conducted or facilitated a significant transaction involving the currency of a country other than the country in which the person is operating at the time of the transaction with, for, or on behalf of—

added “(A) the Central Bank of Iran or another Iranian financial institution designated by the Secretary of the Treasury for the imposition of sanctions pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.); or

added “(B) a person described in section 1244(c)(2) of the Iran Freedom and Counter-Proliferation Act (22 U.S.C. 8803(c)(2)) (other than a person described in subparagraph (C)(iii) of that section); or

added “(2) knowingly conducted or facilitated a significant transaction by another person involving the currency of a country other than the country in which that other person is operating at the time of the transaction, with, for, or on behalf of a person described in subparagraph (A) or (B) of paragraph (1).

added “(c) Waiver

added “(1) In general—The President may waive the application of subsection (a) with respect to a person for a period of not more than 180 days, and may renew that waiver for additional periods of not more than 180 days, if the President—

added “(A) determines that the waiver is vital to the national security of the United States; and

added “(B) not less than 7 days before the waiver or the renewal of the waiver, as the case may be, takes effect, submits a report to the appropriate congressional committees on the waiver and the reason for the waiver.

added “(2) Form of report—Each report submitted under paragraph (1)(B) shall be submitted in unclassified form but may include a classified annex.

added “(d) Rule of construction—Nothing in this section shall be construed to prohibit any person from, or authorize or require the imposition of sanctions with respect to any person for, conducting or facilitating any transaction in the currency of the country in which the person is operating at the time of the transaction for the sale of agricultural commodities, food, medicine, or medical devices.

added “(e) Definitions—In this section:

added “(1) Account; correspondent account; payable-through account—The terms account, correspondent account, and payable-through account have the meanings given those terms in section 5318A of title 31, United States Code.

added “(2) Agricultural commodity—The term agricultural commodity has the meaning given that term in section 102 of the Agricultural Trade Act of 1978 (7 U.S.C. 5602).

added “(3) Foreign financial institution—The term foreign financial institution has the meaning given that term in section 561.308 of title 31, Code of Federal Regulations (or any corresponding similar regulation or ruling).

added “(4) Iranian financial institution—The term Iranian financial institution has the meaning given that term in section 104A(d) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8513b(d)).

added “(5) Medical device—The term medical device has the meaning given the term device in section 201 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321).

added “(6) Medicine—The term medicine has the meaning given the term drug in section 201 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321).

added “(7) Transaction—The term transaction includes a foreign exchange swap, a foreign exchange forward, and any other type of similar currency exchange or conversion or similar derivative instrument.”

added “225. Sanctions with respect to certain transactions with Iran

added “(a) Authorization of sanctions

added “(1) In general—Except as specifically provided in this section, the President may impose sanctions pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) on a foreign person that the President determines has, on or after the date that is 60 days after the date of the enactment of the Nuclear Iran Prevention Act of 2013, knowingly conducted or facilitated a significant financial transaction with the Central Bank of Iran or other Iranian financial institution that has been designated by the Secretary of the Treasury for the imposition of sanctions pursuant to the International Emergency Economic Powers Act, for—

added “(A) the purchase of goods or services by a person in Iran or on behalf of a person in Iran; or

added “(B) the purchase of goods or services from a person in Iran or on behalf of a person in Iran.

added “(2) Rule of construction—Nothing in this section shall be construed to affect the imposition of sanctions with respect to a financial transaction for the purchase of petroleum or petroleum products from Iran under section 1245 of the National Defense Authorization Act for Fiscal Year 2012 (Public Law 112–81; 125 Stat. 1648).

added “(b) Exception for overall reductions of exports to and imports from Iran

added “(1) In general—The President is authorized not to impose sanctions under subsection (a) on a foreign person if the President determines and submits to the appropriate congressional committees a report that contains a determination of the President that the country with primary jurisdiction over the foreign person has, during the time period described in paragraph (2), significantly reduced the value and volume of imports and exports of goods (other than petroleum or petroleum products) and services between such country and Iran.

added “(2) Time period described—The time period referred to in paragraph (1) is the 60-day period ending on the date on which the President makes the determination under paragraph (1) as compared to the immediately preceding 60-day period.

added “(c) Exception for sales of agricultural commodities, food, medicine and medical devices—The President may not impose sanctions under subsection (a) on a foreign person with respect to a transaction for the sale of agricultural commodities, food, medicine or medical devices to Iran.

added “(d) Definitions—In this section:

added “(1) Foreign person—The term foreign person has the meaning given that term in section 14 of the Iran Sanctions Act of 1996 (Public Law 104–172; 50 U.S.C. 1701 note).

added “(2) Iranian financial institution—The term Iranian financial institution has the meaning given that term in section 104A(d) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8513b(d)).”

added “(bb) the foreign financial institution holding the account described in item (aa) does not knowingly facilitate any significant financial transfers for, with, or on behalf of the Government of Iran, unless the transaction is excepted from sanctions under paragraph (2) or is a transaction described in subclause (I) and item (aa).”

added “(E) Strategy to reduce crude oil purchases from Iran or of Iranian origin

added “(i) In general—Not later than 30 days after the date of the enactment of the Nuclear Iran Prevention Act of 2013, the President shall make a determination, based on the information contained in the most recent report required under subparagraph (A), of whether each country that received an exception under subparagraph (D)(i)(I) before such date of enactment is able to reduce its crude oil purchases from Iran or of Iranian origin so that the aggregate amount of such purchases is reduced by not less than an average of 1,000,000 barrels of crude oil per day by the end of the 1-year period beginning on the date of submission of the strategy described in clause (ii). If the President makes an initial determination under this clause that the requirements of this clause cannot be met, then the President shall continue to make a determination under this clause every 90 days thereafter as to whether or not the requirements of this clause can be met.

added “(ii) Strategy—If the President determines that the requirements of clause (i) can be met, then not later than 60 days after the date of such affirmative determination, the President shall develop and submit to the appropriate congressional committees a strategy to seek to ensure that the requirements of clause (i) are met by the end of the 1-year period beginning on such date of submission.

added “(iii) Future exceptions

added “(I) Affirmative determination—If the President determines that the strategy described in clause (ii) was achieved, then each country described in clause (i) shall be eligible to receive one or more further exceptions under subparagraph (D)(i)(I) in accordance with the provisions of such subparagraph.

added “(II) Negative determination—Except as provided in subclause (III), if the President determines that the strategy described in clause (ii) was not achieved, then each country described in clause (i) shall be ineligible to receive any further exception under subparagraph (D)(i)(I) in accordance with the provisions of such subparagraph.

added “(III) Exception

added “(aa) In general—Subclause (II) shall not apply with respect to a country described in clause (i) if the country—

added “(AA) dramatically reduced its crude oil purchases from Iran or of Iranian origin during the 1-year period described in clause (ii); and

added “(BB) has committed itself to continue to reduce its crude oil purchases from Iran or of Iranian origin to a de minimis level.

added “(bb) Data—The President shall submit to the appropriate congressional committees all data used to make a determination under item (aa) not later than 15 days before issuing an exception under item (aa).

added “(iv) Appropriate congressional committees—In this subparagraph, the term appropriate congressional committees means—

added “(I) the Committee on Foreign Affairs and the Committee on Financial Services of the House of Representatives; and

added “(II) the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate.”

added “(iii) Crude oil—In this subparagraph, the term “crude oil” includes unfinished oils, liquefied petroleum gases, distillate fuel oil, and residual fuel oil.”

added “(4) Strategic sector defined—In this section, the term “strategic sector” means—

added “(A) the energy, shipping, shipbuilding, automotive, or mining sector of Iran;

added “(B) the construction or engineering sector of Iran if the President determines and reports to Congress not later than 45 days after the date of the enactment of the Nuclear Iran Prevention Act of 2013 that the construction or engineering sector of Iran, as the case may be, is of strategic importance to Iran; and

added “(C) any other sector that the President designates as of strategic importance to Iran.

added “(5) Notification and report relating to strategic sectors

added “(A) Notification—The President shall submit to Congress a notification of the designation of a sector as a strategic sector of Iran for purposes of paragraph (4)(C) not later than 30 days after the date on which the President makes such designation.

added “(B) Report—Not later than 90 days after the date on which the President submits to Congress a notification of the designation of a sector as a strategic sector of Iran under subparagraph (A), the Comptroller General of the United States shall submit to Congress a report that contains—

added “(i) a review and comment on such designation; and

added “(ii) recommendations regarding the designation of additional sectors as strategic sectors of Iran for purposes of paragraph (4).”

added Section 1245 of the National Defense Authorization Act for Fiscal Year 2013 (22 U.S.C. 8804) is amended—

added “(h) Report on determinations not to impose sanctions on persons who allegedly sell, supply, or transfer precious metals to or from Iran

added “(1) In general—Not later than 90 days after the date of the enactment of Nuclear Iran Prevention Act of 2013, and every 90 days thereafter, the President shall submit to the appropriate congressional committees a report on each determination of the President during the preceding 90-day period not to impose sanctions under subsection (a) or (c) with respect to a person who allegedly sells, supplies, or transfers precious metals, directly or indirectly, to or from Iran, together with the reasons for such determination.

added “(2) Form—The report required by paragraph (1) shall be submitted in unclassified form, but may contain a classified annex, if necessary.”

added Section 1247 of the National Defense Authorization Act for Fiscal Year 2013 (22 U.S.C. 8806) is amended—

added “(f) Persons owned or controlled by specially designated nationals

added “(1) In general—The President shall impose sanctions described in subsection (a) with respect to a foreign financial institution, including but not limited to a foreign central bank, that the President determines has, on or after the date that is 90 days after the date of the enactment of the Nuclear Iran Prevention Act of 2013, knowingly facilitated a significant financial transaction on behalf of any person determined by the President to be directly owned or controlled by an Iranian person included on the list of specially designated nationals and blocked persons maintained by the Office of Foreign Assets Control of the Department of the Treasury (other than an Iranian financial institution described in subsection (b)).

added “(2) Sense of Congress—It is the sense of Congress that the President routinely should determine on or after the date of the enactment of the Nuclear Iran Prevention Act of 2013 those persons that are directly or indirectly owned or controlled by an Iranian person included on the list of specially designated nationals and blocked persons maintained by the Office of Foreign Assets Control of the Department of the Treasury (other than an Iranian financial institution described in subsection (b)).

added “(3) Consideration of data from other countries and nongovernmental organizations—The President shall consider credible data already obtained by other countries and nongovernmental organizations in making determinations described in paragraph (1).”

added Subtitle D of title XII of the National Defense Authorization Act for Fiscal Year 2013 (22 U.S.C. 8801 et seq.) is amended—

added “16. Prohibition on entry and operation

added “(a) In general—No foreign vessel described in subsection (b) shall enter or operate in the navigable waters of the United States or transfer cargo in any port or place under the jurisdiction of the United States.

added “(b) Vessels described—A vessel referred to in subsection (a) is a foreign vessel—

added “(1) for which a Notice of Arrival is required to be filed under section 160 of title 33, Code of Federal Regulations, as in effect on the date of enactment of the Nuclear Iran Prevention Act of 2013; and

added “(2) that is knowingly registered, pursuant to the Geneva Convention on the High Seas (13 U.S.T. 2312; TIAS 5200; 450 UNTS 82), by a ship registry that is maintaining a registration of a vessel that is included in the list published under subsection (c).

added “(c) Notification of governments—The Secretary of Transportation, in consultation with the Secretary of State, shall—

added “(1) maintain timely information on registrations of all foreign vessels over 300 gross tons that are—

added “(A) owned or operated by or on behalf of—

added “(i) the National Iran Tanker Company or the Islamic Republic of Iran Shipping Line; or

added “(ii) any successor to an entity referred to in clause (i); or

added “(B) otherwise owned or operated by or on behalf of Iran;

added “(2) notify each government the agents or instrumentalities of which are maintaining a registration of a foreign vessel described in paragraph (1), that all vessels registered under such government’s authority are prohibited from entering or operating in the navigable waters of the United States or transferring cargo in any port or place under the jurisdiction of the United States; and

added “(3) publish in the Federal Register a list of vessels described in paragraph (1), including periodic updates of such list.

added “(d) Notification of vessels

added “(1) In general—Except as provided in paragraphs (2) and (3), upon receiving a Notice of Arrival under section 160 of title 33, Code of Federal Regulations (as in effect on the date of enactment of the Nuclear Iran Prevention Act of 2013) from a vessel described in (b), the Secretary shall notify the master of such vessel that the vessel may not enter or operate in the navigable waters of the United States or transfer cargo in any port or place under the jurisdiction of the United States.

added “(2) Provisional entry—The Secretary may allow provisional entry of, or transfer of cargo from, a foreign vessel described in subsection (b) if such entry or transfer is necessary for the safety of the vessel or persons aboard.

added “(3) Entry for due diligence—The Secretary may allow entry of, and transfer of cargo from, a vessel described in subsection (b) if the master shows the owner and operator of the vessel exercised due diligence to avoid registration of the vessel by a registry that registers vessels described in subsection (c).

added “(e) Right of innocent passage—This section shall not be construed as authority to restrict the right of innocent passage as recognized under international law.

added “(f) Foreign vessel defined—In this section the term “foreign vessel” has the meaning given that term in section 2101 of title 46, United States Code.”

added It is the sense of Congress that—

added “(e) Rule of construction—The expedited process for the consideration of complete requests for authorization to engage in the activities described in subsection (a) shall be construed to also apply to the transfer of goods and services to Iran to facilitate the ability of Iranian persons to freely communicate, obtain information, and access the Internet and other communications systems.”

added Not later than 90 days after the date of the enactment of this Act, the Comptroller General of the United States shall submit to Congress a report that—

added “(f) Definition—In this section, the term “appropriate congressional committees” includes the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate.”