Legislation News & Report (TM) 

TheWeekInCongress.com (TM)

U.S. & the World

TheWeekInCongress.com (TM)

Week Ending September 28, 2007

H.R.1400 To enhance United States diplomatic efforts with respect to Iran by imposing additional economic sanctions against Iran, and for other purposes.

The bill ratchets up economic sanctions on Iran for the purpose of enhancing diplomatic efforts and insists that Iran is developing a nuclear weapon. The bill implies by reference that Iran is also trying to acquire chemical and biological weapons, ballistic missiles and ballistic missile launch technology

Military force against Iran

Although the bill states clearly, “nothing in this Act shall be construed as authorizing the use of force or the use of the U.S. Armed Forces against Iran” it does not prohibit the use of military force or the use of US Armed Forces against Iran nor does it override other House legislation that authorizes the use of military force against Iran.

UN Sanctions

Congressional ‘findings’ in the bill conclude by reference that Iran has a nuclear weapons program evidenced by to its effort to enrich Uranium and that Iran is defying the international community’s wishes to end that program. The bill says the UN should adopt additional measures including prohibiting investments in Iran’s energy sector.

Imports

Iranian goods now authorized for import into the US are no longer authorized.

Exports

Licenses to export or re-export goods, services or technology relating to civil aviation in effect on March 5, 2007 are no longer valid and new licenses may not be issued.

Penalties are provided for the parent company and the executive principals of those and any company created or availed for the purpose of transactions with Iran unless the contract to do the business was signed before the subsidiary company was created or acquired. If the parent company acquired the subsidiary for the purpose of acquiring an existing contract. Ownership of companies regulated under this bill includes US citizens or aliens lawfully admitted for permanent residence.

“According to the Departments of Commerce and State, in 2006 the United States imported from Iran about $143 million in carpets and foodstuffs and exported to Iran about $15,000 in civil aviation equipment.”

Other sanctions

The bill also authorizes the president to impose sanctions on principal executive officers and other persons in charge of companies violating the law in a fashion as sanctions would be imposed on a foreign person determined to have committed acts of terrorism.

Diplomatic efforts

Every six months the president must report to Congress on specific diplomatic efforts undertaken, the results of those efforts and future diplomatic efforts proposed.

The report will also include a list of countries signing on the sanctions in this bill and a description of those efforts to include how those governments may have rescinded credit, guarantees or other government assistance to those who have violated the bans.

The report will also list countries that did not agree to undertake the measures in this bill and the reasons for not doing so.

Investments

The president will also report on investment and pre-investment activity by any person that would contribute to the enhancement of Iran’s ability to develop petroleum resources in Iran. The president shall provide a description of the activity, when the investment may begin and any US steps to respond to the investment.

Investment is defined as a financial institution extending credit to a person or the person’s investment and pre-investment means any activity indicating the intent to make an investment.

The term ‘person’ means a corporation, business association, partnership, society, trust, financial institution, insurer, underwriter, guarantor or any business organization, or foreign subsidiary.

Petroleum resources means petroleum refining capacity, liquefied natural gas, the sale of oil tankers or liquefied natural gas tankers. Tax credits to foreign companies that invest in exploration of oil and gas in Iran are suspended. Investments prohibited are in amounts of $20 million or more.

The bill appears to suspend the president’s ability to waive provisions in the bill for a period of six months.

The president’s authority is extended to block the assets and interests in property of persons who assist or provide financial, material, or technological support for or financial or other services to or in support of the Iranian revolutionary Guard or entities it controls. Assets may be blocked of persons otherwise associated with the IRGC.

Other measures

The president is required to determine within 120 days whether the Islamic Revolutionary Guards Corps should be designated as a foreign terrorist organization, placed on a list of designated global terrorists and placed on a list of weapons of mass destruction proliferators and supporters. The president is also ordered to report to Congress if the Corps should not be so designated or listed and his reasons.

The bill authorizes $59.5 million for FY 2008 and such sums as may be necessary through 2010 for the Office of Terrorism and Financial Intelligence that oversee global financing with the aim of identifying terrorism financing.

US payments to the International Bank for Reconstruction and Development would be reduced in amounts determined by a formula that divides monies the Bank provided to entities in Iran, for projects and activities in Iran by the total amounts provided by the Bank to all entities for all projects and activities.

No agreement for cooperation between the US and any country that is assisting the nuclear program in Iran or who is transferring advanced conventional weapons or missiles to Iran may be submitted to the president or to Congress for approval. No agreement may enter into force with such a country and no license may be issued to export directly or indirectly to that country of US nuclear material, facilities, components or other goods, services or technology. That prohibition will remain in place until the president certifies to Congress that its efforts to design, develop or acquire a nuclear explosive device or related technology or that the government of the country has suspended all nuclear assistance to Iran and is committed to maintaining that suspension until Iran has changed its ways.

Exchange programs

The bill states that it is the Sense of Congress that the US should seek to enhance its friendship with the people of Iran through a program that brings young Iranians to the US. $10 million is provided for 2008.

Sponsor:  Rep. Tom Lantos (D-CA-12^th)

Vote: Passed the House September 25, 2007 397 to 16 RC 895

Cost to the taxpayers: CBO estimates that implementing H.R. 1400 would cost $116 million in 2008 and $490 million over the 2008-2012 period, assuming appropriation of the necessary funds. In addition, enacting the bill would reduce revenues by less than $500,000 in 2008, by $2 million over the 2008-2012 period, and by $4 million over the 2008-2017 period. Enacting H.R. 1400 would not affect direct spending.

Earmark Certification:   H.R. 1400 does not contain any congressional earmarks, limited tax benefits, or limited tariff benefits as defined in clause 9(d), 9(e), or 9(f) of rule XXI.

## All Rights Reserved. © 2007 TheWeekInCongress.com(TM)

No reproduction, language translation or distribution without written permission from TheWeekInCongress.com.(TM)

MORE INFORMATION

(a) Findings- Congress finds the following:

(1) The prospect of the Islamic Republic of Iran achieving nuclear arms represents a grave threat to the United States and its allies in the Middle East, Europe, and globally.

(2) The nature of this threat is manifold, ranging from the vastly enhanced political influence extremist Iran would wield in its region, including the ability to intimidate its neighbors, to, at its most nightmarish, the prospect that Iran would attack its neighbors and others with nuclear arms. This concern is illustrated by the statement of Hashemi Rafsanjani, former president of Iran and currently a prominent member of two of Iran's most important decisionmaking bodies, of December 14, 2001, when he said that it `is not irrational to contemplate' the use of nuclear weapons.

(3) The theological nature of the Iranian regime creates a special urgency in addressing Iran's efforts to acquire nuclear weapons.

(4) Iranian regime leaders have persistently denied Israel's right to exist. Current President Mahmoud Ahmadinejad has called for Israel to be `wiped off the map' and the Government of Iran has displayed inflammatory symbols that express similar intent.

(5) The nature of the Iranian threat makes it critical that the United States and its allies do everything possible--diplomatically, politically, and economically--to prevent Iran from acquiring nuclear-arms capability and persuade the Iranian regime to halt its quest for nuclear arms.

(b) Sense of Congress- It is the sense of the Congress that--

(1) Iranian President Ahmadinejad's persistent denials of the Holocaust and his repeated assertions that Israel should be `wiped off the map' may constitute a violation of the Convention on the Prevention and Punishment of the Crime of Genocide and should be brought before an appropriate international tribunal for the purpose of declaring Iran in breach of the Genocide Convention;

(2) the United States should increase use of its important role in the international financial sector to isolate Iran;

(3) Iran should be barred from entering the World Trade Organization (WTO) until all issues related to its nuclear program are resolved;

(4) all future free trade agreements entered into by the United States should be conditioned on the requirement that the parties to such agreements pledge not to invest and not to allow companies based in its territory or controlled by its citizens to invest in Iran's energy sector or otherwise to make significant investment in Iran;

(5) United Nations Security Council Resolution 1737 (December 23, 2006), which was passed unanimously and mandates an immediate and unconditional suspension of Iran's nuclear enrichment program, represents a critical gain in the worldwide campaign to prevent Iran's acquisition of nuclear arms and should be fully respected by all nations;

(6) the United Nations Security Council should take further measures beyond Resolution 1737 to tighten sanctions on Iran, including preventing new investment in Iran's energy sector, as long as Iran fails to comply with the international community's demand to halt its nuclear enrichment campaign;

(7) the United States should encourage foreign governments to direct state-owned entities to cease all investment in Iran's energy sector and all exports of refined petroleum products to Iran and to persuade, and, where possible, require private entities based in their territories to cease all investment in Iran's energy sector and all exports of refined petroleum products to Iran;

(8) moderate Arab states have a vital and perhaps existential interest in preventing Iran from acquiring nuclear arms, and therefore such states, particularly those with large oil deposits, should use their economic leverage to dissuade other nations, including the Russian Federation and the People's Republic of China, from assisting Iran's nuclear program directly or indirectly and to persuade other nations, including Russia and China, to be more forthcoming in supporting United Nations Security Council efforts to halt Iran's nuclear program;

(9) the United States should take all possible measures to discourage and, if possible, prevent foreign banks from providing export credits to foreign entities seeking to invest in the Iranian energy sector;

(10) the United States should oppose any further activity by the International Bank for Reconstruction and Development with respect to Iran, or the adoption of a new Country Assistance Strategy for Iran, including by seeking the cooperation of other countries;

(11) the United States should extend its program of discouraging foreign banks from accepting Iranian state banks as clients;

(12) the United States should prohibit all Iranian state banks from using the United States banking system;

(13) United States Federal pension plans should divest themselves of all non-United States companies investing more than $20,000,000 in Iran's energy sector;

(14) State and local government pension plans should divest themselves of all non-United States companies investing more than $20,000,000 in Iran's energy sector;

(15) the United States should designate the Islamic Revolutionary Guards Corps, which purveys terrorism throughout the Middle East and plays an important role in the Iranian economy, as a foreign terrorist organization under section 219 of the Immigration and Nationality Act, place the Islamic Revolutionary Guards Corps on the list of specially designated global terrorists, and place the Islamic Revolutionary Guards Corps on the list of weapons of mass destruction proliferators and their supporters;

(16) United States concerns regarding Iran are strictly the result of actions of the Government of Iran; and

(17) the American people have feelings of friendship for the Iranian people, regret that developments of recent decades have created impediments to that friendship, and hold the Iranian people, their culture, and their ancient and rich history in the highest esteem.

## All Rights Reserved. © 2007 TheWeekInCongress.com.(TM)

No reproduction, language translation or distribution without written permission from TheWeekInCongress.com.(TM)