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Title II — Economic and financial sanctions

H.R. 850 · 113th Congress · Aug 1, 2013 · Lineage

II Economic and financial sanctions

A Amendments to Iran Sanctions Act of 1996

Sec. 201 Transfer to Iran of goods, services, or technology that would materially contribute to Iran’s ability to mine or mill uranium

(a)
In general— Section 5(b) of the Iran Sanctions Act of 1996 (Public Law 104–172; 50 U.S.C. 1701 note) is amended by adding at the end the following new paragraph:

“(3) Transfer to Iran of goods, services, or technology that can be used for mining or milling of uranium—Except as provided in subsection (f), the President shall impose 5 or more of the sanctions described in section 6(a) with respect to a person if the President determines that the person knowingly transferred, on or after the date of the enactment of the Nuclear Iran Prevention Act of 2013, to Iran goods, services, or technology that would materially contribute to Iran’s ability to mine or mill uranium.”

(b)
Conforming amendments— Section 5 of such Act is amended in subsection (b)(3), (c), and (f) by striking “paragraph (1) or (2)” each place it appears and inserting “paragraph (1), (2), or (3)”.

Sec. 202 Repeal of waiver of sanctions relating to development of weapons of mass destruction or other military capabilities

Section 9(c)(1) of the Iran Sanctions Act of 1996 (Public Law 104–172; 50 U.S.C. 1701 note) is amended—
(1)
by striking subparagraph (B);
(2)
by redesignating subparagraph (C) as subparagraph (B); and
(3)
in subparagraph (B) (as redesignated by paragraph (2) of this section)—
(A)
by striking “or (B)” each place it appears; and
(B)
by striking “, as applicable”.

B Amendments to Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 and Iran Threat Reduction and Syria Human Rights Act of 2012

Sec. 211 Modifications to prohibition on procurement contracts with persons that export sensitive technology to Iran

(a)
Application to owners and subsidiaries— Subsection (a) of section 106 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (Public Law 111–195; 22 U.S.C. 8515) is amended—
(1)
by striking “goods or services with a person” and inserting the following:

“(1) with a person”

(2)
in paragraph (1), as added by paragraph (1) of this subsection, by striking the period at the end and inserting and inserting “; or”; and
(3)
by adding at the end the following new paragraph:

“(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).”

(b)
Sensitive technology defined— Subsection (c)(1) of such section is amended by striking “is to be used specifically” and inserting “has been designed or specifically modified”.
(c)
Presidential determination and imposition of additional sanctions— Such section, as so amended, is further amended by adding at the end the following new subsection:

“(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—

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

“(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).”

(d)
Conforming amendment— The heading of such section is amended by inserting “and imposition of sanctions against” after “with”.
(e)
Clerical amendment— The table of contents for the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 is amended by striking the item relating to section 106 and inserting the following:
(f)
Effective date— The amendments made by this section take effect on the date of the enactment of this Act and apply with respect to exports of sensitive technology to Iran that occur on or after such date of enactment.

Sec. 212 Authority of State and local governments to avoid exposure to sanctioned persons and sectors

(a)
In general— Section 202 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8532) is amended by striking subsections (a), (b), and (c) and inserting the following:

“(a) Sense of congress—It is the sense of Congress that the United States should respect the decision of any State or local government to divest from or prohibit the investment of assets of the State or local government in a person described in subsection (c) or to impose disclosure and transparency requirements on any person subject to the jurisdiction of such government, except with respect to an activity that is exempt, licensed, or otherwise authorized by a Federal department or agency.

“(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)—

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

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

“(3) to impose disclosure and transparency requirements on any person subject to the jurisdiction of such government, except with respect to an activity that is exempt, licensed, or otherwise authorized by a Federal department or agency.

“(c) Persons described—A person described in this subsection is a person with respect to which sanctions have been, and continue to be, imposed pursuant to—

“(1) section 104(c) of this Act;

“(2) section 5 of the Iran Sanctions Act of 1996 (50 U.S.C. 1701 note);

“(3) section 1245(d) of the National Defense Authorization Act for Fiscal Year 2012 (22 U.S.C. 8513a(d)); or

“(4) sections 1244, 1245, 1246 or 1247 of the National Defense Authorization Act for Fiscal Year 2013 (22 U.S.C. 8803, 8804, 8805, or 8806).”

(b)
Conforming amendments— Section 202 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8532) is amended—
(1)
in subsection (d)(4), by striking “engages in investment activities in Iran described in subsection (c)” and inserting “is a person described in subsection (c)”;
(2)
in subsection (f), by striking “or (i)” and inserting “or (g)”;
(3)
by striking subsection (h) and by redesignating subsections (i) and (j) as subsections (h) and (i), respectively; and
(4)
in paragraph (1) of subsection (i) (as redesignated by paragraph (3) of this subsection), by striking “(determined without regard to subsection (c))”.
(c)
Effective date— The amendments made by this section apply to measures adopted by State and local governments on or after the date of the enactment of this Act.

Sec. 213 Sense of Congress regarding the European Central Bank

(a)
Findings— Congress finds the following:
(1)
The Government of Iran, its agencies and instrumentalities, continue to have access to, and utilize, euro-denominated transactions, including for goods and services that are subject to sanctions imposed by the United States, the European Union and its member states and by the United Nations.
(2)
The Guidelines of the European Central Bank (Article 39(1)) states that: “Participants shall be deemed to be aware of, and shall comply with, all obligations on them relating to legislation on data protection, prevention of money laundering and the financing of terrorism, proliferation-sensitive nuclear activities and the development of nuclear weapons delivery systems, in particular in terms of implementing appropriate measures concerning any payments debited or credited on their PM accounts.”
(3)
United States and European convergence with respect to United States sanctions efforts toward the Government of Iran is a vital component of United States policy aimed at preventing the Government of Iran from acquiring a nuclear weapons capability.
(b)
Sense of Congress— It is the sense of Congress that the President should continue to closely coordinate and cooperate with the European Union and its member states to restrict access to and use of the euro currency by the Government of Iran, its agencies and instrumentalities, for transactions with the exception of food, medicine, medical devices, and agricultural commodities.

Sec. 214 Imposition of sanctions with respect to certain transactions in foreign currencies

(a)
Imposition of sanctions— Subtitle B of title II of the Iran Threat Reduction and Syria Human Rights Act of 2012 (22 U.S.C. 8721 et seq.) is amended by inserting after section 220 the following:

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

“(a) In general—Except as provided in this section, the President—

“(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 (c); and

“(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 (c).

“(b) Exception—The authority to impose sanctions under subsection (a)(2) shall not include the authority to impose sanctions relating to the importation of goods.

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

“(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—

“(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

“(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

“(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).

“(d) Waiver

“(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—

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

“(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.

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

“(e) 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.

“(f) Definitions—In this section:

“(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.

“(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).

“(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).

“(4) Good—The term “good” has the meaning given that term in section 16 of the Export Administration Act of 1979 (50 U.S.C. App. 2415) (as continued in effect pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.)).

“(5) 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)).

“(6) 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).

“(7) 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).

“(8) 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.”

(b)
Conforming amendments—
(1)
Implementation— Section 601(a)(1) of the Iran Threat Reduction and Syria Human Rights Act of 2012 (22 U.S.C. 8781(a)(1)) is amended by inserting “220A,” after “220,”.
(2)
Penalties— Section 601(b)(2)(A) of such Act (22 U.S.C. 8781(b)(2)(A)) is amended by striking “and 220, ” and inserting “220, and 220A,”.
(3)
Termination— Section 605(a) of such Act (22 U.S.C. 8785(a)) is amended by inserting “220A,” after “220,”.
(c)
Clerical amendment— The table of contents for the Iran Threat Reduction and Syria Human Rights Act of 2012 is amended by inserting after the item relating to section 220 the following:
(d)
Effective date— The amendments made by this section take effect on the date of the enactment of this Act and apply with respect to transactions entered into on or after May 22, 2013.

Sec. 215 Sanctions with respect to certain transactions with Iran

(a)
In general— Subtitle B of title II of the Iran Threat Reduction and Syria Human Rights Act of 2012 (22 U.S.C. 8721 et seq.) is amended by adding at the end the following new section:

“225. Sanctions with respect to certain transactions with Iran

“(a) Authorization of sanctions

“(1) In general—Except as 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—

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

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

“(2) Exception

“(A) In general—The authority to impose sanctions under paragraph (1) shall not include the authority to impose sanctions relating to the importation of goods.

“(B) Good—In this paragraph, the term “good” has the meaning given that term in section 16 of the Export Administration Act of 1979 (50 U.S.C. App. 2415) (as continued in effect pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.)).

“(3) 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).

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

“(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.

“(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.

“(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.

“(d) Definitions—In this section:

“(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).

“(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)).”

(b)
Clerical amendment— The table of contents for the Iran Threat Reduction and Syria Human Rights Act of 2012 is amended by inserting after the item relating to section 224 the following:

C Other matters

Sec. 221 Imposition of sanctions with respect to the Central Bank of Iran and other Iranian financial institutions

(a)
Exception to applicability of sanctions with respect to petroleum transactions— Section 1245(d)(4)(D)(i)(I) of the National Defense Authorization Act for Fiscal Year 2012 (Public Law 112–81; 125 Stat. 1648; 22 U.S.C. 8513a(d)(4)(D)(i)(I)) is amended—
(1)
by striking “reduced reduced” and inserting “reduced”;
(2)
by inserting “value and” before “volume”;
(3)
by inserting “or of Iranian origin” after “from Iran”; and
(4)
by adding at the end before the semicolon the following: “, and the President certifies in writing to Congress that the President has based such determination on accurate information on that country’s total purchases of crude oil from Iran or of Iranian origin”.
(b)
Financial transactions described— Section 1245(d)(4)(D)(ii)(II) of the National Defense Authorization Act for Fiscal Year 2012 (Public Law 112–81; 125 Stat. 1648) is amended—
(1)
by striking “(II)” and inserting “(II)(aa)”;
(2)
in item (aa) (as designated by paragraph (1) of this subsection), by striking the period at the end and inserting “; and”; and
(3)
by adding at the end the following new item:

“(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).”

(c)
Strategy to reduce crude oil purchases from Iran or of Iranian origin—
(1)
Statement of policy— It is the policy of the United States to seek to ensure that countries that have received an exception under subparagraph (D)(i)(I) of section 1245(d)(4) of the National Defense Authorization Act for Fiscal Year 2012 (Public Law 112–81; 125 Stat. 1648) shall reduce their 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 subparagraph (E)(ii) of such section (as added by paragraph (2) of this subsection).
(2)
Amendment— Section 1245(d)(4) of the National Defense Authorization Act for Fiscal Year 2012 (Public Law 112–81; 125 Stat. 1648) is amended by adding at the end the following new subparagraph:

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

“(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.

“(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.

“(iii) Future exceptions

“(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.

“(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.

“(III) Exception

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

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

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

“(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).

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

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

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

(d)
Definition of crude oil— Section 1245(d)(4)(D) of the National Defense Authorization Act for Fiscal Year 2012 (22 U.S.C. 8513a(d)(4)(D)) is amended by adding at the end the following new clause:

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

(e)
Waiver— Section 1245(d)(5)(A) of the National Defense Authorization Act for Fiscal Year 2012 (22 U.S.C. 8513a(d)(5)(A)) is amended by striking “in the national” and inserting “vital to the national”.
(f)
Definitions of “significant reduction”— Section 1245(h)(3) of the National Defense Authorization Act for Fiscal Year 2012 (22 U.S.C. 8513a(h)(3)) is amended—
(1)
by striking “price or volume” and inserting “price and volume”; and
(2)
by adding at the end before the period the following: “and at least a pro rata amount totaling, in the aggregate, 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 subsection (d)(4)(E)(ii)”.
(g)
Effective date— The amendments made by this section take effect beginning on the date that is 180 days after the date of the enactment of this Act.

Sec. 222 Imposition of sanctions with respect to ports, special economic zones, free economic zones, and strategic sectors of Iran

(a)
Findings— Subsection (a)(1) of section 1244 of the National Defense Authorization Act for Fiscal Year 2013 (22 U.S.C. 8803) is amended by striking “and shipbuilding” and inserting “shipbuilding, automotive, construction, engineering, or mining”.
(b)
Designation of ports, special economic zones, free economic zones, and entities in strategic sectors as entities of proliferation concern— Subsection (b) of such section is amended—
(1)
in the subsection heading, by striking “and entities in the energy, shipping, and shipbuilding sectors” and inserting “, special economic zones, free economic zones, and entities in strategic sectors”; and
(2)
by striking “and entities in the energy, shipping, and shipbuilding sectors” and inserting “, entities that operate special economic zones or free economic zones, and entities in strategic sectors (as defined in subsection (c)(4))”.
(c)
Blocking of property of ports, special economic zones, free economic zones, and entities in strategic sectors— Subsection (c) of such section is amended—
(1)
in the subsection heading, by striking “entities in energy, shipping, and shipbuilding sectors” and inserting “ports, special economic zones, free economic zones, and entities in strategic sectors”;
(2)
in paragraph (2)—
(A)
by striking “the energy, shipping, or shipbuilding sectors” each place it appears and inserting “a strategic sector (as defined in paragraph (4)(A))”; and
(B)
by inserting “, special economic zone, or free economic zone” after “port” each place it appears; and
(3)
by adding at the end the following new paragraphs:

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

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

“(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.

“(5) Notification and report relating to strategic sectors

“(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.

“(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—

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

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

(d)
Additional sanctions with respect to strategic sectors— Subsection (d) of such section is amended—
(1)
in the subsection heading, by striking “the energy, shipping, and shipbuilding sectors” and inserting “strategic sectors”; and
(2)
in paragraph (3), by striking “the energy, shipping, or shipbuilding sectors” and inserting “a strategic sector (as defined in subsection (c)(4)(A))”.
(e)
Exception for Afghanistan reconstruction— Subsection (f) of such section is amended—
(1)
in the matter preceding paragraph (1), by inserting “for a period of not more than 1 year, and may renew that exception for additional periods of not more than 1 year” after “economic development for Afghanistan”;
(2)
in paragraph (1)—
(A)
by striking “to the extent that” and inserting “if”;
(B)
by inserting “or the renewal of the exception, as the case may be,” after “such an exception”; and
(C)
by striking “in the national interest” and inserting “in the national security interest”; and
(3)
in paragraph (2)—
(A)
by inserting “or the renewal of the exception, as the case may be,” before “not later than 15 days”; and
(B)
by inserting at the end before the period the following: “or the renewal of the exception”.
(f)
Conforming amendment— Such section is further amended in the section heading by striking “the energy, shipping, and shipbuilding sectors” and inserting “ports, special economic zones, free economic zones, and strategic sectors”.
(g)
Effective date— The amendments made by this section—
(1)
take effect on the date that is 90 days after the date of the enactment of this Act; and
(2)
(A)
with respect to subsection (c) of section 1244 of the National Defense Authorization Act for Fiscal Year 2013, as so amended, apply with respect to all transactions in all property and interests in property of any person described in subsection (c)(2) of such section that occur on or after the date that is 180 days after such date of enactment; and
(B)
(i)
with respect to subsection (d)(1) of section 1244 of the National Defense Authorization Act for Fiscal Year 2013, apply with respect to the sale, supply, or transfer to or from Iran of goods or services described in subsection (d)(3) of such section, as so amended, that occurs on or after the date that is 180 days after such date of enactment; and
(ii)
with respect to subsection (d)(2) of section 1244 of the National Defense Authorization Act for Fiscal Year 2013, apply with respect to the conduct or facilitation of a significant financial transaction for the sale, supply, or transfer to or from Iran of goods or services described in subsection (d)(3) of such section, as so amended, that occurs on or after the date that is 180 days after such date of enactment.

Sec. 223 Report on determinations not to impose sanctions on persons who allegedly sell, supply, or transfer precious metals to or from Iran

Section 1245 of the National Defense Authorization Act for Fiscal Year 2013 (22 U.S.C. 8804) is amended—
(1)
by redesignating subsection (h) as subsection (i); and
(2)
by inserting after subsection (g) the following new subsection:

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

“(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.

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

Sec. 224 Imposition of sanctions with respect to foreign financial institutions that facilitate financial transactions on behalf of persons owned or controlled by specially designated nationals

Section 1247 of the National Defense Authorization Act for Fiscal Year 2013 (22 U.S.C. 8806) is amended—
(1)
by redesignating subsection (f) as subsection (g); and
(2)
by inserting after subsection (e) the following new subsection:

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

“(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)).

“(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)).

“(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).”

Sec. 225 Repeal of exemptions under sanctions provisions of National Defense Authorization Act for Fiscal Year 2013

Subtitle D of title XII of the National Defense Authorization Act for Fiscal Year 2013 (22 U.S.C. 8801 et seq.) is amended—
(1)
in section 1244—
(A)
in subsection (c)(1)—
(i)
by striking “(1) Blocking of property.—” and all that follows through “On and after” and inserting “(1) Blocking of property.—On and after”; and
(ii)
by striking subparagraph (B); and
(B)
in subsection (d)(1)—
(i)
by striking “(1) Sale, supply, or transfer of certain goods and services.—” and all that follows through “Except as provided” and inserting “(1) Sale, supply, or transfer of certain goods and services.—Except as provided”; and
(ii)
by striking subparagraph (B);
(2)
in section 1245(a)—
(A)
by striking “(a) sale, supply, or transfer of certain materials.—” and all that follows through “The President” and inserting “(a) sale, supply, or transfer of certain materials.—The President”;
(B)
by redesignating subparagraphs (A), (B), and (C) as paragraphs (1), (2), and (3), respectively (and by redesignating all sub-units therein accordingly);
(C)
in paragraph (3)(B) (as redesignated by subparagraph (B) of this paragraph)—
(i)
in clause (i), by striking “subclause (I) of clause (i)” and inserting “clause (i) of subparagraph (A)”;
(ii)
in clause (ii), by striking “subclause (II) of that clause” and inserting “clause (ii) of that subparagraph”; and
(iii)
in clause (iii), by striking “subclause (III) of that clause” and inserting “clause (iii) of that subparagraph”; and
(D)
by striking “(2) exception.—” and all that follows through “paragraph (1).”; and
(3)
in section 1246(a)—
(A)
by striking “(a) imposition of sanctions.—” and all that follows through “Except as provided” and inserting “(a) imposition of sanctions.—Except as provided”;
(B)
by redesignating subparagraphs (A), (B), and (C) as paragraphs (1), (2), and (3), respectively (and by redesignating all sub-units therein accordingly); and
(C)
by striking “(2) exception.—” and all that follows through “paragraph (1).”; and

Sec. 226 Termination of government contracts with persons who sell goods, services, or technology to, or conduct any other transaction with, Iran

(a)
Modification of federal acquisition regulation— Not later than 90 days after the date of the enactment of this Act, the Federal Acquisition Regulation shall be revised to require a certification from each person that is a prospective contractor that the person, and any person under common ownership or control with the person, does not sell goods, services, or technology to, or conduct any other transaction with, Iran for which sanctions may be imposed under this Act.
(b)
Remedies—
(1)
In general— If the head of an executive agency determines that a person has submitted a false certification under subsection (a) on or after the date on which the applicable revision of the Federal Acquisition Regulation required by this section becomes effective, the head of that executive agency shall terminate a contract with such person or debar or suspend such person from eligibility for Federal contracts for a period of not less than 2 years. Any such debarment or suspension shall be subject to the procedures that apply to debarment and suspension under the Federal Acquisition Regulation under subpart 9.4 of part 9 of title 48, Code of Federal Regulations.
(2)
Inclusion on list of parties excluded from federal procurement and nonprocurement programs— The Administrator of General Services shall include on the List of Parties Excluded from Federal Procurement and Nonprocurement Programs maintained by the Administrator under part 9 of the Federal Acquisition Regulation each person that is debarred, suspended, or proposed for debarment or suspension by the head of an executive agency on the basis of a determination of a false certification under paragraph (1).
(c)
Rule of construction— This section shall not be construed to limit the use of other remedies available to the head of an executive agency or any other official of the Federal Government on the basis of a determination of a false certification under subsection (a).
(d)
Waivers—
(1)
In general— The President may on a case-by-case basis waive the requirement that a person make a certification under subsection (a) if the President determines and certifies in writing to the congressional committees described in paragraph (2) that it is essential to the national security interests of the United States to do so.
(2)
Congressional committees described— The congressional committees referred to in paragraph (1) are—
(A)
the Committee on Foreign Affairs, the Committee on Armed Services, and the Committee on Oversight and Government Reform of the House of Representatives; and
(B)
the Committee on Foreign Relations, the Committee on Armed Services, and the Committee on Homeland Security and Governmental Affairs of the Senate.
(e)
Definitions— In this section:
(1)
Executive agency— The term executive agency has the meaning given that term in section 133 of title 41, United States Code.
(2)
Federal Acquisition Regulation— The term Federal Acquisition Regulation means the regulation issued pursuant to section 1303(a)(1) of title 41, United States Code.
(f)
Applicability— The revisions to the Federal Acquisition Regulation required under subsection (a) shall apply with respect to contracts for which solicitations are issued on or after the date that is 90 days after the date of the enactment of this Act.

Sec. 227 Conditions for entry and operation of vessels

(a)
In general— The Ports and Waters Safety Act (33 U.S.C. 1221 et seq.) is amended by adding at the end the following:

“16. Prohibition on entry and operation

“(a) Prohibition

“(1) 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.

“(2) Limitation on Application—Paragraph (1) shall not apply with respect to a vessel described in subsection (b)(2) on and after any date on which the Secretary of State determines that the vessel is no longer registered as described in that subsection. The Secretary of State shall publish a notice of each such determination in the Federal Register.

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

“(1) is on a list of vessels published in Federal Register under subsection (c)(2); or

“(2) more than 180 days after the publication of such a list, is registered, pursuant to the Geneva Convention on the High Seas (13 U.S.T. 2312; TIAS 5200; 450 UNTS 82), by a government the agents or instrumentalities of which are maintaining a registration of a vessel that is included in such list.

“(c) Information and publication—The Secretary of Transportation, in consultation with the Secretary of State, shall—

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

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

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

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

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

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

“(d) Notification of governments—The Secretary of State shall notify each government the agents or instrumentalities of which are maintaining a registration of a foreign vessel that is included on the list published under subsection (c)(2), that all vessels registered under such government’s authority are subject to the prohibition under subsection (a) if more than 180 days after such publication the government continues to maintain a registration for a vessel that is included on the list published under subsection (c)(2).

“(e) Notification of vessels—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, unless—

“(1) the Secretary has made a determination described in subsection (a)(2); or

“(2) the Secretary allows provisional entry of the vessel, or transfer of cargo from the vessel, under subsection (f).

“(f) Provisional entry or cargo transfer—Notwithstanding subsection (e), 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.

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

“(h) Foreign vessel defined—In this section the term “foreign vessel” has the meaning given that term in section 110 of title 46, United States Code.”

(b)
Deadline for publication— The Secretary shall publish a list under section 16(c)(2) of the Ports and Waterways Safety Act, as amended by this section, by not later than 180 days after the date of the enactment of this Act.
(c)
Conforming Amendments—
(1)
Section 13(e) of the Ports and Waterways Safety Act (33 U.S.C. 1232(e)) is amended by striking “section 9” and inserting “sections 9 and 16”.
(2)
Section 4(b)(2) of the Ports and Waterways Safety Act (33 U.S.C. 1223(b)(2)) is amended by striking “section 9” and inserting “section 9 or 16”.