[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 2725 Introduced in Senate (IS)]

<DOC>






114th CONGRESS
  2d Session
                                S. 2725

 To impose sanctions with respect to the ballistic missile program of 
                     Iran, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 17, 2016

     Ms. Ayotte (for herself, Mr. Rubio, Mr. Kirk, Mr. Graham, Mr. 
McConnell, Mr. Cornyn, Mr. Gardner, Mr. Risch, Mrs. Ernst, Mr. Portman, 
 Ms. Murkowski, and Mr. Cruz) introduced the following bill; which was 
read twice and referred to the Committee on Banking, Housing, and Urban 
                                Affairs

_______________________________________________________________________

                                 A BILL


 
 To impose sanctions with respect to the ballistic missile program of 
                     Iran, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Iran Ballistic Missile Sanctions Act 
of 2016''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) On April 2, 2015, President Barack Obama said, ``Other 
        American sanctions on Iran for its support of terrorism, its 
        human rights abuses, its ballistic missile program, will 
        continue to be fully enforced.''.
            (2) On July 7, 2015, General Martin Dempsey, then-Chairman 
        of the Joint Chiefs of Staff, said, ``Under no circumstances 
        should we relieve the pressure on Iran relative to ballistic 
        missile capabilities.''.
            (3) On July 29, 2015, in his role as the top military 
        officer in the United States and advisor to the President, 
        General Dempsey confirmed that his military recommendation was 
        that sanctions relating to the ballistic missile program of 
        Iran not be lifted.
            (4) The Government of Iran and Iran's Revolutionary Guard 
        Corps have been responsible for the repeated testing of illegal 
        ballistic missiles capable of carrying a nuclear device, 
        including observed tests in October and November 2015 and March 
        2016, violating United Nations Security Council resolutions.
            (5) On October 14, 2015, Samantha Power, United States 
        Ambassador to the United Nations, said, ``One of the really 
        important features in implementation of the recent Iran deal to 
        dismantle Iran's nuclear program is going to have to be 
        enforcement of the resolutions and the standards that remain on 
        the books.''.
            (6) On December 11, 2015, the United Nations Panel of 
        Experts concluded that the missile launch on October 10, 2015, 
        ``was a violation by Iran of paragraph 9 of Security Council 
        resolution 1929 (2010)''.
            (7) On January 17, 2016, Adam Szubin, Acting Under 
        Secretary for Terrorism and Financial Intelligence, stated, 
        ``Iran's ballistic missile program poses a significant threat 
        to regional and global security, and it will continue to be 
        subject to international sanctions. We have consistently made 
        clear that the United States will vigorously press sanctions 
        against Iranian activities outside of the Joint Comprehensive 
        Plan of Action--including those related to Iran's support for 
        terrorism, regional destabilization, human rights abuses, and 
        ballistic missile program.''.
            (8) On February 9, 2016, James Clapper, Director of 
        National Intelligence, testified that, ``We judge that Tehran 
        would choose ballistic missiles as its preferred method of 
        delivering nuclear weapons, if it builds them. Iran's ballistic 
        missiles are inherently capable of delivering WMD, and Tehran 
        already has the largest inventory of ballistic missiles in the 
        Middle East. Iran's progress on space launch vehicles--along 
        with its desire to deter the United States and its allies--
        provides Tehran with the means and motivation to develop 
        longer-range missiles, including ICBMs.''.
            (9) On March 9, 2016, Iran reportedly fired two Qadr 
        ballistic missiles with a range of more than 1,000 miles and 
        according to public reports, the missiles were marked with a 
        statement in Hebrew reading, ``Israel must be wiped off the 
        arena of time.''.
            (10) On March 11, 2016, Ambassador Power called the recent 
        ballistic missile launches by Iran ``provocative and 
        destabilizing'' and called on the international community to 
        ``degrade Iran's missile program''.
            (11) On March 14, 2016, Ambassador Power said that the 
        recent ballistic missile launches by Iran were ``in defiance of 
        provisions of UN Security Council Resolution 2231''.
            (12) Iran has demonstrated the ability to launch multiple 
        rockets from fortified underground facilities and mobile launch 
        sites not previously known.
            (13) The ongoing procurement by Iran of technologies needed 
        to boost the range, accuracy, and payloads of its diverse 
        ballistic missile arsenal represents a threat to deployed 
        personnel of the United States and allies of the United States 
        in Europe and the Middle East, including Israel.
            (14) Ashton Carter, Secretary of Defense, testified in a 
        hearing before the Armed Services Committee of the Senate on 
        July 7, 2015, that, ``[T]he reason that we want to stop Iran 
        from having an ICBM program is that the I in ICBM stands for 
        intercontinental, which means having the capability to fly from 
        Iran to the United States, and we don't want that. That's why 
        we oppose ICBMs.''.
            (15) Through recent ballistic missile launch tests the 
        Government of Iran has shown blatant disregard for 
        international laws and its intention to continue tests of that 
        nature throughout the implementation of the Joint Comprehensive 
        Plan of Action.
            (16) The banking sector of Iran has facilitated the 
        financing of the ballistic missile programs in Iran and 
        evidence has not been provided that entities in that sector 
        have ceased facilitating the financing of those programs.
            (17) Iran has been able to amass a large arsenal of 
        ballistic missiles through its illicit smuggling networks and 
        domestic manufacturing capabilities that have been supported 
        and maintained by Iran's Revolutionary Guard Corps and specific 
        sectors of the economy of Iran.
            (18) Penetration by Iran's Revolutionary Guard Corps into 
        the economy of Iran is well documented including investments in 
        the construction, automotive, telecommunications, electronics, 
        mining, metallurgy, and petrochemical sectors of the economy of 
        Iran.
            (19) Items procured through sectors of Iran specified in 
        paragraph (18) have dual use applications that are currently 
        being used to create ballistic missiles in Iran and will 
        continue to be a source of materials for the creation of future 
        weapons.
            (20) In order to curb future illicit activity by Iran, the 
        Government of the United States and the international community 
        must take action against persons that facilitate and profit 
        from the illegal acquisition of ballistic missile parts and 
        technology in support of the missile programs of Iran.

SEC. 3. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) the ballistic missile program of Iran represents a 
        serious threat to allies of the United States in the Middle 
        East and Europe, members of the Armed Forces deployed in the 
        those regions, and ultimately the United States;
            (2) the testing and production by Iran of ballistic 
        missiles capable of carrying a nuclear device is a clear 
        violation of United Nations Security Council Resolution 2231 
        (2015), which was unanimously adopted by the international 
        community;
            (3) Iran is using its space launch program to develop the 
        capabilities necessary to deploy an intercontinental ballistic 
        missile that could threaten the United States, and the Director 
        of National Intelligence has assessed that Iran would use 
        ballistic missiles as its ``preferred method of delivering 
        nuclear weapons''; and
            (4) the Government of the United States should impose tough 
        primary and secondary sanctions against any sector of the 
        economy of Iran or any Iranian person that directly or 
        indirectly supports the ballistic missile program of Iran as 
        well as any foreign person or financial institution that 
        engages in transactions or trade that support that program.

SEC. 4. EXPANSION OF SANCTIONS WITH RESPECT TO EFFORTS BY IRAN TO 
              ACQUIRE BALLISTIC MISSILE AND RELATED TECHNOLOGY.

    (a) Certain Persons.--Section 1604(a) of the Iran-Iraq Arms Non-
Proliferation Act of 1992 (Public Law 102-484; 50 U.S.C. 1701 note) is 
amended, in the matter preceding paragraph (1), by inserting ``, to 
acquire ballistic missile or related technology,'' after ``nuclear 
weapons''.
    (b) Foreign Countries.--Section 1605(a) of the Iran-Iraq Arms Non-
Proliferation Act of 1992 (Public Law 102-484; 50 U.S.C. 1701 note) is 
amended, in the matter preceding paragraph (1), by inserting ``, to 
acquire ballistic missile or related technology,'' after ``nuclear 
weapons''.

SEC. 5. EXTENSION OF IRAN SANCTIONS ACT OF 1996 AND EXPANSION OF 
              SANCTIONS WITH RESPECT TO PERSONS THAT ACQUIRE OR DEVELOP 
              BALLISTIC MISSILES.

    (a) Expansion of Mandatory Sanctions.--Section 5(b)(1)(B) of the 
Iran Sanctions Act of 1996 (Public Law 104-172; 50 U.S.C. 1701 note) is 
amended--
            (1) in clause (i), by striking ``would likely'' and 
        inserting ``may''; and
            (2) in clause (ii)--
                    (A) in subclause (I), by striking ``; or'' and 
                inserting a semicolon;
                    (B) by redesignating subclause (II) as subclause 
                (III); and
                    (C) by inserting after subclause (I) the following:
                                    ``(II) acquire or develop ballistic 
                                missiles and the capability to launch 
                                ballistic missiles; or''.
    (b) Extension of Iran Sanctions Act of 1996.--Section 13(b) of the 
Iran Sanctions Act of 1996 (Public Law 104-172; 50 U.S.C. 1701 note) is 
amended by striking ``December 31, 2016'' and inserting ``December 31, 
2031''.

SEC. 6. IMPOSITION OF SANCTIONS WITH RESPECT TO BALLISTIC MISSILE 
              PROGRAM OF IRAN.

    (a) In General.--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:

  ``Subtitle C--Measures Relating to Ballistic Missile Program of Iran

``SEC. 231. DEFINITIONS.

    ``(a) In General.--In this subtitle:
            ``(1) 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).
            ``(2) Appropriate committees of congress.--The term 
        `appropriate committees of Congress' means--
                    ``(A) the committees specified in section 14(2) of 
                the Iran Sanctions Act of 1996 (Public Law 104-172; 50 
                U.S.C. 1701 note); and
                    ``(B) the congressional defense committees, as 
                defined in section 101 of title 10, United States Code.
            ``(3) Correspondent account; payable-through account.--The 
        terms `correspondent account' and `payable-through account' 
        have the meanings given those terms in section 5318A of title 
        31, United States Code.
            ``(4) Foreign financial institution.--The term `foreign 
        financial institution' has the meaning of that term as 
        determined by the Secretary of the Treasury pursuant to section 
        104(i) of the Comprehensive Iran Sanctions, Accountability, and 
        Divestment Act of 2010 (22 U.S.C. 8513(i)).
            ``(5) Good.--The term `good' has the meaning given that 
        term in section 16 of the Export Administration Act of 1979 (50 
        U.S.C. 4618) (as continued in effect pursuant to the 
        International Emergency Economic Powers Act (50 U.S.C. 1701 et 
        seq.)).
            ``(6) Government.--The term `Government', with respect to a 
        foreign country, includes any agencies or instrumentalities of 
        that Government and any entities controlled by that Government.
            ``(7) 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).
            ``(8) 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).
    ``(b) Determinations of Significance.--For purposes of this 
subtitle, in determining if financial transactions or financial 
services are significant, the President may consider the totality of 
the facts and circumstances, including factors similar to the factors 
set forth in section 561.404 of title 31, Code of Federal Regulations 
(or any corresponding similar regulation or ruling).

``SEC. 232. IMPOSITION OF SANCTIONS WITH RESPECT TO PERSONS THAT 
              SUPPORT THE BALLISTIC MISSILE PROGRAM OF IRAN.

    ``(a) Identification of Persons.--
            ``(1) In general.--Not later than 120 days after the date 
        of the enactment of the Iran Ballistic Missile Sanctions Act of 
        2016, and not less frequently than once every 180 days 
        thereafter, the President shall, in coordination with the 
        Secretary of Defense, the Director of National Intelligence, 
        the Secretary of the Treasury, and the Secretary of State, 
        submit to the appropriate committees of Congress a report 
        identifying persons that have knowingly aided the Government of 
        Iran in the development of the ballistic missile program of 
        Iran.
            ``(2) Elements.--Each report required by paragraph (1) 
        shall include the following:
                    ``(A) An identification of persons (disaggregated 
                by Iranian and non-Iranian persons) that have knowingly 
                aided the Government of Iran in the development of the 
                ballistic missile program of Iran, including persons 
                that have--
                            ``(i) knowingly engaged in the direct or 
                        indirect provision of material support to such 
                        program;
                            ``(ii) knowingly facilitated, supported, or 
                        engaged in activities to further the 
                        development of such program;
                            ``(iii) knowingly transmitted information 
                        relating to ballistic missiles to the 
                        Government of Iran; or
                            ``(iv) otherwise knowingly aided such 
                        program.
                    ``(B) A description of the character and 
                significance of the cooperation of each person 
                identified under subparagraph (A) with the Government 
                of Iran with respect to such program.
                    ``(C) An assessment of the cooperation of the 
                Government of the Democratic People's Republic of Korea 
                with the Government of Iran with respect to such 
                program.
            ``(3) Classified annex.--Each report required by paragraph 
        (1) shall be submitted in unclassified form, but may contain a 
        classified annex.
    ``(b) Blocking of Property.--
            ``(1) In general.--Not later than 15 days after submitting 
        a report required by subsection (a)(1), the President shall, in 
        accordance with the International Emergency Economic Powers Act 
        (50 U.S.C. 1701 et seq.), block and prohibit all transactions 
        in all property and interests in property of any person 
        specified in such report if such property and interests in 
        property are in the United States, come within the United 
        States, or are or come within the possession or control of a 
        United States person.
            ``(2) Inapplicability of national emergency requirement.--
        The requirements under section 202 of the International 
        Emergency Economic Powers Act (50 U.S.C. 1701) shall not apply 
        for purposes of this subsection.
    ``(c) Exclusion From United States.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary of State shall deny a visa to, and the Secretary of 
        Homeland Security shall exclude from the United States, any 
        alien subject to blocking of property and interests in property 
        under subsection (b).
            ``(2) Compliance with united nations headquarters 
        agreement.--Paragraph (1) shall not apply to the head of state 
        of Iran, or necessary staff of that head of state, if admission 
        to the United States is necessary to permit the United States 
        to comply with the Agreement regarding the Headquarters of the 
        United Nations, signed at Lake Success June 26, 1947, and 
        entered into force November 21, 1947, between the United 
        Nations and the United States.
    ``(d) Facilitation of Certain Transactions.--The President 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 the 
President determines knowingly, on or after the date that is 180 days 
after the date of the enactment of the Iran Ballistic Missile Sanctions 
Act of 2016, conducts or facilitates a significant financial 
transaction for a person subject to blocking of property and interests 
in property under subsection (b).

``SEC. 233. BLOCKING OF PROPERTY OF PERSONS AFFILIATED WITH CERTAIN 
              IRANIAN ENTITIES.

    ``(a) Blocking of Property.--
            ``(1) In general.--The President shall, in accordance with 
        the International Emergency Economic Powers Act (50 U.S.C. 1701 
        et seq.), block and prohibit all transactions in all property 
        and interests in property of any person described in paragraph 
        (3) if such property and interests in property are in the 
        United States, come within the United States, or are or come 
        within the possession or control of a United States person.
            ``(2) Inapplicability of national emergency requirement.--
        The requirements under section 202 of the International 
        Emergency Economic Powers Act (50 U.S.C. 1701) shall not apply 
        for purposes of this subsection.
            ``(3) Persons described.--A person described in this 
        paragraph is--
                    ``(A) an entity that is owned, directly or 
                indirectly, by a 25 percent or greater interest--
                            ``(i) by the Aerospace Industries 
                        Organization, the Shahid Hemmat Industrial 
                        Group, the Shahid Bakeri Industrial Group, or 
                        any agent or affiliate of such organization or 
                        group; or
                            ``(ii) collectively by a group of 
                        individuals that hold an interest in the 
                        Aerospace Industries Organization, the Shahid 
                        Hemmat Industrial Group, the Shahid Bakeri 
                        Industrial Group, or any agent or affiliate of 
                        such organization or group, even if none of 
                        those individuals hold a 25 percent or greater 
                        interest in the entity;
                    ``(B) a person that controls, manages, or directs 
                an entity described in subparagraph (A); or
                    ``(C) an individual who is on the board of 
                directors of an entity described in subparagraph (A).
    ``(b) Facilitation of Certain Transactions.--The President 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 the 
President determines knowingly, on or after the date that is 180 days 
after the date of the enactment of the Iran Ballistic Missile Sanctions 
Act of 2016, conducts or facilitates a significant financial 
transaction for a person subject to blocking of property and interests 
in property under subsection (a).
    ``(c) Iran Missile Proliferation Watch List.--
            ``(1) In general.--Not later than 90 days after the date of 
        the enactment of the Iran Ballistic Missile Sanctions Act of 
        2016, and not less frequently than annually thereafter, the 
        Secretary of the Treasury shall submit to the appropriate 
        committees of Congress and publish in the Federal Register a 
        list of--
                    ``(A) each entity in which the Aerospace Industries 
                Organization, the Shahid Hemmat Industrial Group, the 
                Shahid Bakeri Industrial Group, or any agent or 
                affiliate of such organization or group has an 
                ownership interest of more than 0 percent and less than 
                25 percent;
                    ``(B) each entity in which the Aerospace Industries 
                Organization, the Shahid Hemmat Industrial Group, the 
                Shahid Bakeri Industrial Group, or any agent or 
                affiliate of such organization or group does not have 
                an ownership interest but maintains a presence on the 
                board of directors of the entity or otherwise 
                influences the actions, policies, or personnel 
                decisions of the entity; and
                    ``(C) each person that controls, manages, or 
                directs an entity described in subparagraph (A) or (B).
            ``(2) Reference.--The list required by paragraph (1) may be 
        referred to as the `Iran Missile Proliferation Watch List'.
    ``(d) Comptroller General Report.--
            ``(1) In general.--The Comptroller General of the United 
        States shall--
                    ``(A) conduct a review of each list required by 
                subsection (c)(1); and
                    ``(B) not later than 60 days after each such list 
                is submitted to the appropriate committees of Congress 
                under that subsection, submit to the appropriate 
                committees of Congress a report on the review conducted 
                under subparagraph (A) that includes a list of persons 
                not included in that list that qualify for inclusion in 
                that list, as determined by the Comptroller General.
            ``(2) Consultations.--In preparing the report required by 
        paragraph (1)(B), the Comptroller General shall consult with 
        nongovernmental organizations.

``SEC. 234. IMPOSITION OF SANCTIONS WITH RESPECT TO CERTAIN PERSONS 
              INVOLVED IN BALLISTIC MISSILE ACTIVITIES.

    ``(a) Certification.--Not later than 120 days after the date of the 
enactment of the Iran Ballistic Missile Sanctions Act of 2016, and not 
less frequently than once every 180 days thereafter, the President 
shall submit to the appropriate committees of Congress a certification 
that each person listed in an annex of United Nations Security Council 
Resolution 1737 (2006), 1747 (2007), or 1929 (2010) is not directly or 
indirectly facilitating, supporting, or involved with the development 
of or transfer to Iran of ballistic missiles or technology, parts, 
components, or technology information relating to ballistic missiles.
    ``(b) Blocking of Property.--
            ``(1) In general.--If the President is unable to make a 
        certification under subsection (a) with respect to a person and 
        the person is not currently subject to sanctions with respect 
        to Iran under any other provision of law, the President shall, 
        not later than 15 days after that certification would have been 
        required under that subsection--
                    ``(A) in accordance with the International 
                Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), 
                block and prohibit all transactions in all property and 
                interests in property of that person if such property 
                and interests in property are in the United States, 
                come within the United States, or are or come within 
                the possession or control of a United States person; 
                and
                    ``(B) publish in the Federal Register a report 
                describing the reason why the President was unable to 
                make a certification with respect to that person.
            ``(2) Inapplicability of national emergency requirement.--
        The requirements under section 202 of the International 
        Emergency Economic Powers Act (50 U.S.C. 1701) shall not apply 
        for purposes of this subsection.
    ``(c) Exclusion From United States.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary of State shall deny a visa to, and the Secretary of 
        Homeland Security shall exclude from the United States, any 
        alien subject to blocking of property and interests in property 
        under subsection (b).
            ``(2) Compliance with united nations headquarters 
        agreement.--Paragraph (1) shall not apply to the head of state 
        of Iran, or necessary staff of that head of state, if admission 
        to the United States is necessary to permit the United States 
        to comply with the Agreement regarding the Headquarters of the 
        United Nations, signed at Lake Success June 26, 1947, and 
        entered into force November 21, 1947, between the United 
        Nations and the United States.
    ``(d) Facilitation of Certain Transactions.--The President 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 the 
President determines knowingly, on or after the date that is 180 days 
after the date of the enactment of the Iran Ballistic Missile Sanctions 
Act of 2016, conducts or facilitates a significant financial 
transaction for a person subject to blocking of property and interests 
in property under subsection (b).

``SEC. 235. IMPOSITION OF SANCTIONS WITH RESPECT TO CERTAIN SECTORS OF 
              IRAN THAT SUPPORT THE BALLISTIC MISSILE PROGRAM OF IRAN.

    ``(a) List of Sectors.--
            ``(1) In general.--Not later than 120 days after the date 
        of the enactment of the Iran Ballistic Missile Sanctions Act of 
        2016, and not less frequently than once every 180 days 
        thereafter, the President shall submit to the appropriate 
        committees of Congress and publish in the Federal Register a 
        list of the sectors of the economy of Iran that are directly or 
        indirectly facilitating, supporting, or involved with the 
        development of or transfer to Iran of ballistic missiles or 
        technology, parts, components, or technology information 
        relating to ballistic missiles.
            ``(2) Certain sectors.--
                    ``(A) In general.--Not later than 120 days after 
                the date of enactment of the Iran Ballistic Missile 
                Sanctions Act of 2016, the President shall submit to 
                the appropriate committees of Congress a determination 
                as to whether each of the automotive, chemical, 
                computer science, construction, electronic, energy, 
                metallurgy, mining, petrochemical, research (including 
                universities and research institutions), and 
                telecommunications sectors of Iran meet the criteria 
                specified in paragraph (1).
                    ``(B) Inclusion in initial list.--If the President 
                determines under subparagraph (A) that the sectors of 
                the economy of Iran specified in such subparagraph meet 
                the criteria specified in paragraph (1), that sector 
                shall be included in the initial list submitted and 
                published under that paragraph.
    ``(b) Sanctions With Respect to Specified Sectors of Iran.--
            ``(1) Blocking of property.--
                    ``(A) In general.--The President shall, in 
                accordance with the International Emergency Economic 
                Powers Act (50 U.S.C. 1701 et seq.), block and prohibit 
                all transactions in all property and interests in 
                property of any person described in paragraph (4) if 
                such property and interests in property are in the 
                United States, come within the United States, or are or 
                come within the possession or control of a United 
                States person.
                    ``(B) Inapplicability of national emergency 
                requirement.--The requirements under section 202 of the 
                International Emergency Economic Powers Act (50 U.S.C. 
                1701) shall not apply for purposes of this paragraph.
            ``(2) Exclusion from united states.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the Secretary of State shall deny a 
                visa to, and the Secretary of Homeland Security shall 
                exclude from the United States, any alien that is a 
                person described in paragraph (4).
                    ``(B) Compliance with united nations headquarters 
                agreement.--Subparagraph (A) shall not apply to the 
                head of state of Iran, or necessary staff of that head 
                of state, if admission to the United States is 
                necessary to permit the United States to comply with 
                the Agreement regarding the Headquarters of the United 
                Nations, signed at Lake Success June 26, 1947, and 
                entered into force November 21, 1947, between the 
                United Nations and the United States.
            ``(3) Facilitation of certain transactions.--Except as 
        provided in this section, the President 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 the President determines knowingly, on or after the date 
        that is 180 days after the date of the enactment of the Iran 
        Ballistic Missile Sanctions Act of 2016, conducts or 
        facilitates a significant financial transaction for a person 
        described in paragraph (4).
            ``(4) Persons described.--A person is described in this 
        paragraph if the President determines that the person, on or 
        after the date that is 180 days after the date of the enactment 
        of the Iran Ballistic Missile Sanctions Act of 2016--
                    ``(A) operates in a sector of the economy of Iran 
                included in the most recent list published by the 
                President under subsection (a);
                    ``(B) knowingly provides significant financial, 
                material, technological, or other support to, or goods 
                or services in support of, any activity or transaction 
                on behalf of or for the benefit of a person described 
                in subparagraph (A); or
                    ``(C) is owned or controlled by a person described 
                in subparagraph (A).
    ``(c) Humanitarian Exception.--The President may not impose 
sanctions under this section with respect to any person for conducting 
or facilitating a transaction for the sale of agricultural commodities, 
food, medicine, or medical devices to Iran or for the provision of 
humanitarian assistance to the people of Iran.

``SEC. 236. IDENTIFICATION OF FOREIGN PERSONS THAT SUPPORT THE 
              BALLISTIC MISSILE PROGRAM OF IRAN IN CERTAIN SECTORS OF 
              IRAN.

    ``(a) In General.--Not later than 120 days after the date of the 
enactment of the Iran Ballistic Missile Sanctions Act of 2016, and not 
less frequently than annually thereafter, the President shall submit to 
the appropriate committees of Congress and publish in the Federal 
Register a list of all foreign persons that have, based on credible 
information, directly or indirectly facilitated, supported, or been 
involved with the development of ballistic missiles or technology, 
parts, components, or technology information related to ballistic 
missiles in the following sectors of the economy of Iran during the 
period specified in subsection (b):
            ``(1) Automotive.
            ``(2) Chemical.
            ``(3) Computer Science.
            ``(4) Construction.
            ``(5) Electronic.
            ``(6) Energy.
            ``(7) Metallurgy.
            ``(8) Mining.
            ``(9) Petrochemical.
            ``(10) Research (including universities and research 
        institutions).
            ``(11) Telecommunications.
            ``(12) Any other sector of the economy of Iran identified 
        under section 235(a).
    ``(b) Period Specified.--The period specified in this subsection 
is--
            ``(1) with respect to the first list submitted under 
        subsection (a), the period beginning on the date of the 
        enactment of the Iran Ballistic Missile Sanctions Act of 2016 
        and ending on the date that is 120 days after such date of 
        enactment; and
            ``(2) with respect to each subsequent list submitted under 
        such subsection, the one-year period preceding the submission 
        of the list.
    ``(c) Comptroller General Report.--
            ``(1) In general.--With respect to each list submitted 
        under subsection (a), not later than 120 days after the list is 
        submitted under that subsection, the Comptroller General of the 
        United States shall submit to the appropriate committees of 
        Congress--
                    ``(A) an assessment of the processes followed by 
                the President in preparing the list;
                    ``(B) an assessment of the foreign persons included 
                in the list; and
                    ``(C) a list of persons not included in the list 
                that qualify for inclusion in the list, as determined 
                by the Comptroller General.
            ``(2) Consultations.--In preparing the report required by 
        paragraph (1), the Comptroller General shall consult with 
        nongovernmental organizations.
    ``(d) Credible Information Defined.--In this section, the term 
`credible information' 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).''.
    (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:

  ``Subtitle C--Measures Relating to Ballistic Missile Program of Iran

``Sec. 231. Definitions.
``Sec. 232. Imposition of sanctions with respect to persons that 
                            support the ballistic missile program of 
                            Iran.
``Sec. 233. Blocking of property of persons affiliated with certain 
                            Iranian entities.
``Sec. 234. Imposition of sanctions with respect to certain persons 
                            involved in ballistic missile activities.
``Sec. 235. Imposition of sanctions with respect to certain sectors of 
                            Iran that support the ballistic missile 
                            program of Iran.
``Sec. 236. Identification of foreign persons that support the 
                            ballistic missile program of Iran in 
                            certain sectors of Iran.''.

SEC. 7. EXPANSION OF MANDATORY SANCTIONS WITH RESPECT TO FINANCIAL 
              INSTITUTIONS THAT ENGAGE IN CERTAIN TRANSACTIONS RELATING 
              TO BALLISTIC MISSILE CAPABILITIES OF IRAN.

    Section 104 of the Comprehensive Iran Sanctions, Accountability, 
and Divestment Act of 2010 (22 U.S.C. 8513) is amended--
            (1) in subsection (c)(2)--
                    (A) in subparagraph (A)--
                            (i) in clause (i), by striking ``; or'' and 
                        inserting a semicolon;
                            (ii) by redesignating clause (ii) as clause 
                        (iii); and
                            (iii) by inserting after clause (i) the 
                        following:
                            ``(ii) to acquire or develop ballistic 
                        missiles and capabilities and launch technology 
                        relating to ballistic missiles; or''; and
                    (B) in subparagraph (E)(ii)--
                            (i) in subclause (I), by striking ``; or'' 
                        and inserting a semicolon;
                            (ii) by redesignating subclause (II) as 
                        subclause (III); and
                            (iii) by inserting after subclause (I) the 
                        following:
                                    ``(II) Iran's development of 
                                ballistic missiles and capabilities and 
                                launch technology relating to ballistic 
                                missiles; or''; and
            (2) in subsection (f)--
                    (A) by redesignating paragraphs (1) and (2) as 
                subparagraphs (A) and (B), respectively, and moving 
                those subparagraphs, as so redesignated, two ems to the 
                right;
                    (B) by striking ``Waiver.--The'' and inserting 
                ``Waiver.--
            ``(1) In general.--Except as provided in paragraph (2), 
        the''; and
                    (C) by adding at the end the following:
            ``(2) Exception.--The Secretary of the Treasury may not 
        waive under paragraph (1) the application of a prohibition or 
        condition imposed with respect to an activity described in 
        subparagraph (A)(ii) or (E)(ii)(II) of subsection (c)(2).''.

SEC. 8. DISCLOSURE TO THE SECURITIES AND EXCHANGE COMMISSION OF 
              ACTIVITIES WITH CERTAIN SECTORS OF IRAN THAT SUPPORT THE 
              BALLISTIC MISSILE PROGRAM OF IRAN.

    (a) In General.--Section 13(r)(1) of the Securities Exchange Act of 
1934 (15 U.S.C. 78m(r)(1)) is amended--
            (1) in subparagraph (C), by striking ``; or'' and inserting 
        a semicolon;
            (2) by redesignating subparagraph (D) as subparagraph (E); 
        and
            (3) by inserting after subparagraph (C) the following:
                    ``(D) knowingly engaged in any activity for which 
                sanctions may be imposed under section 235 of the Iran 
                Threat Reduction and Syria Human Rights Act of 2012;''.
    (b) Investigations.--Section 13(r)(5)(A) of the Securities Exchange 
Act of 1934 is amended by striking ``an Executive order specified in 
clause (i) or (ii) of paragraph (1)(D)'' and inserting ``section 235 of 
the Iran Threat Reduction and Syria Human Rights Act of 2012, an 
Executive order specified in clause (i) or (ii) of paragraph (1)(E)''.
    (c) Conforming Amendment.--Section 13(r)(5) of the Securities 
Exchange Act of 1934 is amended, in the matter preceding subparagraph 
(A), by striking ``subparagraph (D)(iii)'' and inserting ``subparagraph 
(E)(iii)''.
    (d) Effective Date.--The amendments made by this section shall take 
effect with respect to reports required to be filed with the Securities 
and Exchange Commission after the date that is 180 days after the date 
of the enactment of this Act.

SEC. 9. REGULATIONS.

    Not later than 90 days after the date of the enactment of this Act, 
the President shall prescribe regulations to carry out this Act and the 
amendments made by this Act.
                                 <all>