Pub.L. 104-173 To provide for the extension of certain hydroelectric projects located in the State of West Virginia. <> ...

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[[Page 110 STAT. 1541]]

Public Law 104-172
104th Congress

                                 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. <<NOTE:  Aug. 5, 1996 -  [H.R. 3107]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: Iran and Libya Sanctions 
Act of 1996. 50 USC 1701 note.>> assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Iran and Libya Sanctions Act of 
1996''.

SEC. 2. <<NOTE: 50 USC 1701 note.>> 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. <<NOTE: 50 USC 1701 note.>> 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

[[Page 110 STAT. 1542]]

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. <<NOTE: President. 50 USC 1701 note.>> 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 <<NOTE: Notification.>> 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--

[[Page 110 STAT. 1543]]

            (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. <<NOTE: President. 50 USC 1701 note.>> 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.

[[Page 110 STAT. 1544]]

    (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;

[[Page 110 STAT. 1545]]

                    (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. <<NOTE: 50 USC 1701 note.>> 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 

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