HR 6178 IH
110th CONGRESS
2d Session
H. R. 6178
To strengthen existing legislation sanctioning persons aiding and facilitating nonproliferation activities by the Governments of Iran, North Korea, and Syria, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
June 4, 2008
Ms. ROS-LEHTINEN (for herself, Mr. CANTOR, Mr. PENCE, and Mr. MCCOTTER) introduced the following bill; which was referred to the Committee on Foreign Affairs, and in addition to the Committees on Ways and Means, Judiciary, Oversight and Government Reform, and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned
A BILL
To strengthen existing legislation sanctioning persons aiding and facilitating nonproliferation activities by the Governments of Iran, North Korea, and Syria, 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; TABLE OF CONTENTS.
(a) Short Title- This Act may be cited as the or `Security through Termination Of Proliferation Act of 2008' or the `STOP Act of 2008'.
(b) Table of Contents- The table of contents for this Act is as follows:
Sec. 1. Short title; Table of contents.
TITLE I--CODIFICATION OF SANCTIONS AGAINST IRAN, NORTH KOREA, AND SYRIA
Sec. 101. Codification of sanctions against Iran.
Sec. 102. Codification of sanctions against North Korea.
Sec. 103. Codification of sanctions against Syria.
TITLE II--AMENDMENTS TO THE IRAN, NORTH KOREA, AND SYRIA NONPROLIFERATION ACT
Sec. 201. Transshipment of certain goods, services, or technology.
Sec. 202. Restrictions on nuclear cooperation.
Sec. 203. Exclusion of senior officials.
TITLE III--AMENDMENTS TO THE IRAN SANCTIONS ACT OF 1996 AND RELATED PROVISIONS
Sec. 301. Exclusion from the United States of senior officials of foreign persons who have aided proliferation relating to Iran.
Sec. 302. Denial of tax benefits for taxpayers engaged in business activity with Iran prohibited by United States law.
Sec. 303. Income tax of foreign corporations engaged in business activity with Iran prohibited by United States law.
Sec. 304. Compensation for Former United States Hostages in Iran Fund.
TITLE IV--DEFINITIONS
TITLE I--CODIFICATION OF SANCTIONS AGAINST IRAN, NORTH KOREA, AND SYRIA
SEC. 101. CODIFICATION OF SANCTIONS AGAINST IRAN.
United States sanctions, controls, and regulations with respect to Iran imposed pursuant to Executive Order No. 12957, sections 1(b) through (1)(g) and sections (2) through (6) of Executive Order No. 12959, and sections 2 and 3 of Executive Order No. 13059 (relating to exports and certain other transactions with Iran) as in effect on January 1, 2008, shall remain in effect until the President certifies to the appropriate congressional committees that the Government of Iran has verifiably dismantled its weapons of mass destruction programs.
SEC. 102. CODIFICATION OF SANCTIONS AGAINST NORTH KOREA.
United States sanctions, controls, and regulations with respect to North Korea imposed by reason of a determination of the Secretary of State that the Government of North Korea, for purposes of section 6(j) of the Export Administration Act of 1979 (as continued in effect pursuant to the International Emergency Economic Powers Act), section 40 of the Arms Export Control Act, section 620A of the Foreign Assistance Act of 1961, or other provision of law, is a government that has repeatedly provided support for acts of international terrorism, shall remain in effect and may not be lifted pursuant to such provisions of law until the President certifies to appropriate congressional committees that the Government of North Korea has verifiably dismantled its weapons of mass destruction programs.
SEC. 103. CODIFICATION OF SANCTIONS AGAINST SYRIA.
Restrictions against the Government of Syria, and on persons by reason of their direction of, or contribution to, activities of the Government of Syria, that were imposed pursuant to the International Emergency Economic Powers Act, the Syria Accountability and Lebanese Sovereignty Act of 2003, the Iran, North Korea, and Syria Nonproliferation Act, or any similar provision of law, as in effect on the date of the enactment of this Act, including the restrictions imposed under Executive Order 12938 (as amended by Executive Order 13094), Executive Order 13338, Executive Order 13399, Executive Order 13460, and any similar Executive Order, shall remain in effect and may not be lifted pursuant to such provisions of law until the President certifies to the appropriate congressional committees that the Government of Syria has verifiably dismantled its weapons of mass destruction programs.
TITLE II--AMENDMENTS TO THE IRAN, NORTH KOREA, AND SYRIA NONPROLIFERATION ACT
SEC. 201. TRANSSHIPMENT OF CERTAIN GOODS, SERVICES, OR TECHNOLOGY.
The Iran, North Korea, and Syria Nonproliferation Act (Public Law 106-178; 50 U.S.C. 1701 note) is amended--
(A) in subsection (a), in the matter preceding paragraph (1)--
(i) by striking `or' after `Syria'; and
(ii) by inserting after `North Korea' the following: `, on or after January 1, 1999, permitted, hosted or otherwise facilitated a transshipment (as such term is defined in section 5) that may have enabled a foreign person to transfer (as such term is defined in section 7) to or acquire from Iran, on or after January 1, 2005, permitted, hosted or otherwise facilitated a transshipment that may have enabled a foreign person to transfer to or acquire from Syria, or on or after January 1, 2006, permitted, hosted or otherwise facilitated a transshipment that may have enabled a person to transfer to or acquire from North Korea'; and
(B) in subsection (e), by inserting `, or whose transfer via transshipment was permitted, hosted or facilitated,' after `transferred'; and
(i) in paragraph (1), by inserting `, or did not permit, host, or otherwise facilitate transshipment (as such term is defined in section 5) that may have enabled a foreign person to transfer to or acquire from,' before `Iran';
(ii) in paragraph (3), by striking `or' at the end;
(iii) in paragraph (4), by striking the period at the end and inserting `; or'; and
(iv) by adding at the end the following new paragraph:
`(5) in the case of a foreign person who permitted, hosted or otherwise facilitated transshipment that may have enabled a foreign person to transfer to or acquire from, Iran, North Korea, or Syria, as the case may be, the goods, services, or technology the apparent transfer of which caused that person to be identified in a report submitted pursuant to section 2(a), the government with primary jurisdiction over the foreign person has made and continues to make clear, specific efforts to stop and deter the permitting, hosting, or other facilitating of transshipments that may enable such transfers or acquisitions.'; and
(B) by adding at the end the following new subsection:
`(g) Definitions- In this section:
`(1) GOODS, SERVICES, OR TECHNOLOGY- The term `goods, services, or technology' includes--
`(A) any defense articles or defense services on the United States Munitions List under section 38 of the Arms Export Control Act (22 U.S.C. 2778) for which special export controls are warranted under such Act (22 U.S.C. 2751 3 et seq.);
`(B) any item identified on the Commerce Control List maintained under part 774 of title 15, Code of Federal Regulations; and
`(C) other sensitive United States goods, including intellectual property and services that would contribute to the abilities of Iran, North Korea, and Syria to further their conventional and unconventional military capabilities.
`(2) TRANSSHIPMENT- In this section, the term `transshipment' means the export from one country to another that passes through a third country, in which cargo is off-loaded and there is some change to conveyance.'.
SEC. 202. RESTRICTIONS ON NUCLEAR COOPERATION.
The Iran, North Korea, and Syria Nonproliferation Act is further amended--
(1) by redesignating section 7 as section 9; and
(2) by inserting after section 6 the following new section:
`SEC. 7. RESTRICTIONS ON NUCLEAR COOPERATION WITH COUNTRIES AIDING PROLIFERATION BY IRAN, NORTH KOREA, OR SYRIA.
`(1) RESTRICTIONS- Notwithstanding any other provision of law--
`(A) no agreement for cooperation between the United States and the government of any country that is assisting the nuclear program of Iran, North Korea, or Syria or transferring advanced conventional weapons or missiles to Iran, North Korea, or Syria may be submitted to the President or to Congress pursuant to section 123 of the Atomic Energy Act of 1954 (42 U.S.C. 2153);
`(B) no such agreement may enter into force with such country;
`(C) no license may be issued for export directly or indirectly to such country of any nuclear material, facilities, components, or other goods, services, or technology that would be subject to such agreement; and
`(D) no approval may be given for the transfer or retransfer directly or indirectly to such country of any nuclear material, facilities, components, or other goods, services, or technology that would be subject to such agreement, until the President makes the determination and report under paragraph (2).
`(2) DETERMINATION AND REPORT- The determination and report referred to in paragraph (1)(D) are a determination and report by the President, submitted to the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate, that--
`(A) Iran, North Korea, or Syria have ceased their efforts to design, develop, or acquire a nuclear explosive device or related materials or technology; or
`(B) the government of the country that is assisting the nuclear programs of Iran, North Korea, or Syria or transferring advanced conventional weapons or missiles to Iran, North Korea, or Syria--
`(i) has suspended all nuclear assistance to Iran, North Korea, or Syria and all transfers of advanced conventional weapons and missiles to Iran, North Korea, or Syria; and
`(ii) is committed to maintaining that suspension until Iran, North Korea, or Syria have implemented measures that would permit the President to make the determination described in subparagraph (A).
`(b) Rules of Construction- The restrictions described in subsection (a)(1)--
`(1) shall apply in addition to all other applicable procedures, requirements, and restrictions described in the Atomic Energy Act of 1954 and other applicable Acts; and
`(2) shall not be construed as affecting the validity of an agreement for cooperation between the United States and the government of a country that is in effect on the date of the enactment of this Act.
`(c) Definitions- In this section:
`(1) AGREEMENT FOR COOPERATION- The term `agreement for cooperation' has the meaning given that term in section 11 b. of the Atomic Energy Act of 1954 (42 U.S.C. 2014(b)).
`(2) ASSISTING THE NUCLEAR PROGRAM OF IRAN, NORTH KOREA, OR SYRIA- The term `assisting the nuclear program of Iran, North Korea, or Syria' means the intentional transfer to Iran, North Korea, or Syria by a government, or by a person subject to the jurisdiction of a government with the knowledge and acquiescence of that government, of goods, services, or technology listed on the Nuclear Suppliers Group Guidelines for the Export of Nuclear Material, Equipment and Technology (published by the International Atomic Energy Agency as Information Circular INFCIRC/254/Rev. 3/Part 1, and subsequent revisions), or the Nuclear Suppliers Group Guidelines for Transfers of Nuclear-Related Dual-Use Equipment, Material, and Related Technology (published by the International Atomic Energy Agency as Information Circular INFCIR/254/Rev. 3/Part 2, and subsequent revisions).
`(3) COUNTRY THAT IS ASSISTING THE NUCLEAR PROGRAMS OF IRAN, NORTH KOREA, OR SYRIA, OR TRANSFERRING ADVANCED CONVENTIONAL WEAPONS OR MISSILES TO IRAN, NORTH KOREA, OR SYRIA- The term `country that is assisting the nuclear program of Iran, North Korea, or Syria, or transferring advanced conventional weapons or missiles to Iran, North Korea, or Syria' means--
`(A) the Russian Federation; and
`(B) any other country determined by the President to be assisting the nuclear program of Iran, North Korea, or Syria, or transferring advanced conventional weapons or missiles to Iran, North Korea, or Syria.
`(4) TRANSFER- The term `transfer' means the conveyance of technological or intellectual property, or the conversion of intellectual or technological advances into marketable goods, services, or articles of value, developed and generated in one place, to another through illegal or illicit means to a country, the government of which the Secretary of State has determined, for purposes of section 6(j)(1)(A) of the Export Administration Act of 1979 (as in effect pursuant to the International Emergency Economic Powers Act; 50 U.S.C. 1701 et seq.), section 40(d) of the Arms Export Control Act (22 U.S.C. 2780(d)), and section 620A of the Foreign Assistance Act of 1961 (22 U.S.C. 2371), is a government that has repeatedly provided support for acts of international terrorism.
`(5) TRANSFERRING ADVANCED CONVENTIONAL WEAPONS OR MISSILES TO IRAN, NORTH KOREA, OR SYRIA- The term `transferring advanced conventional weapons or missiles to Iran, North Korea, or Syria' means the intentional transfer to Iran, North Korea, or Syria by a government, or by a person subject to the jurisdiction of a government with the knowledge and acquiescence of that government, of goods, services, or technology listed on--
`(A) the Wassenaar Arrangement list of Dual Use Goods and Technologies and Munitions list of July 12, 1996, and subsequent revisions; or
`(B) the Missile Technology Control Regime Equipment and Technology Annex of June 11, 1996, and subsequent revisions.
`(d) Effective Date- The amendment made by subsection (a) shall apply to expense paid or incurred on or after January 1, 2008.'.
SEC. 203. EXCLUSION OF SENIOR OFFICIALS.
The Iran, North Korea, and Syria Nonproliferation Act is further amended by inserting after section (7), as added by section 202 of this Act, the following new section:
`SEC. 8. EXCLUSION FROM THE UNITED STATES OF SENIOR OFFICIALS OF FOREIGN PERSONS WHO HAVE AIDED PROLIFERATION RELATING TO IRAN, NORTH KOREA, OR SYRIA.
`(a) Grounds for Exclusion- Except as provided in subsection (b), the Secretary of State shall deny a visa to, and the Secretary of Homeland Security shall exclude from the United States, any alien whom the Secretary of State determines is an alien who, on or after the date of the enactment of this Act is a--
`(1) corporate officer, principal, or shareholder with a controlling interest of a foreign person identified in a report submitted pursuant to section 2(a);
`(2) corporate officer, principal, or shareholder with a controlling interest of a successor entity to, or a parent or subsidiary of, a foreign person identified in such a report;
`(3) corporate officer, principal, or shareholder with a controlling interest of an affiliate of a foreign person identified in such a report, if such affiliate engaged in the activities referred to in such report, and if such affiliate is controlled in fact by the foreign person identified in such report;
`(4) spouse, minor child, or agent of a person excludable under paragraph (1), (2), or (3);
`(5) senior official of a foreign government identified in such a report;
`(6) senior official of a foreign government with primary jurisdiction over a foreign person identified in such a report; or
`(7) spouse, minor child, or agent of a person excludable under paragraph (5) or (6).
`(b) Exception- The President may waive the sanctions described in subsection (a) with respect to a person specified in paragraph (5), (6), or (7) if the President determines and certifies in writing to the Committee on Foreign Affairs and the Committee on Appropriations of the House of Representatives and the Committee on Foreign Relations and the Committee on Appropriations of the Senate, on a case by case basis, that the foreign government with primary jurisdiction over such person has made and continues to make clear, specific efforts to stop and deter the transfer (as such term is defined in section 7) or retransfer of, or the permitting, hosting, or other facilitating of transshipments (as such term is defined in section 5) that may enable the transfer or retransfer of, goods or technology that contribute to the efforts by Iran, North Korea, or Syria, as the case may be, to acquire or develop advanced conventional weapons, or to acquire, develop, produce, or stockpile biological, chemical, radiological, or nuclear weapons or long-range ballistic missiles.
`(c) Advanced Conventional Weapons Defined- In this section, the term `advanced conventional weapons' means goods, services, or technology listed on--
`(1) the Wassenaar Arrangement list of Dual Use Goods and Technologies and Munitions list of July 12, 1996, and subsequent revisions; or
`(2) the Missile Technology Control Regime Equipment and Technology Annex of June 11, 1996, and subsequent revisions.'.
TITLE III--AMENDMENTS TO THE IRAN SANCTIONS ACT OF 1996 AND RELATED PROVISIONS
SEC. 301. EXCLUSION FROM THE UNITED STATES OF SENIOR OFFICIALS OF FOREIGN PERSONS WHO HAVE AIDED PROLIFERATION RELATING TO IRAN.
The Iran Sanctions Act of 1996 (Public Law 104-172; 50 U.S.C. 1701 note) is amended--
(1) in section 5(b), in the matter preceding paragraph (1), by inserting `, or permitted, hosted, or otherwise facilitated transshipment that may have enabled a person to export, transfer, or otherwise provide to Iran,' after `or otherwise provided to Iran';
(2) by redesignating sections (7) through (14) as sections (8) through (15), respectively; and
(3) by inserting after section (6) the following new section:
`SEC. 7. EXCLUSION FROM THE UNITED STATES OF SENIOR OFFICIALS OF FOREIGN PERSONS WHO HAVE AIDED PROLIFERATION RELATING TO IRAN.
`(a) Grounds for Exclusion- Except as provided in subsection (b), the Secretary of State shall deny a visa to, and the Secretary of State shall exclude from the United States, any alien whom the Secretary of State determines is an alien who, on or after the date of the enactment of this Act is a--
`(1) corporate officer, principal, or shareholder with a controlling interest of a person against whom sanctions have been imposed pursuant to section 5;
`(2) corporate officer, principal, or shareholder with a controlling interest of a successor entity to or a parent or subsidiary of such a person;
`(3) corporate officer, principal, or shareholder with a controlling interest of an affiliate of such a sanctioned person, if such affiliate engaged in a sanctionable activity described in subsection (a) or (b) of section 5, and if such affiliate is controlled in fact by such a person;
`(4) spouse, minor child, or agent of a person excludable under paragraph (1), (2), or (3);
`(5) senior official of a foreign government that is identified as a person against whom sanctions have been imposed pursuant to section 5;
`(6) senior official of a foreign government with primary jurisdiction over such a person; or
`(7) spouse, minor child, or agent of a person excludable under paragraph (5) or (6).
`(b) Exception- The President may waive the sanctions described in subsection (a) with respect to a person specified in paragraph (5), (6), or (7) if the President determines and certifies in writing to the appropriate congressional committees, on a case by case basis, that the foreign government with primary jurisdiction over such a person against whom sanctions have been imposed pursuant to section 5 has made and continues to make clear, specific efforts to stop and deter a sanctionable activity described in subsection (a) or (b) of section 5.'; and
(4) in section 15, as redesignated pursuant to paragraph (2) of this section--
(A) by redesignating paragraphs (15) and (16) as paragraphs (17) and (18), respectively; and
(B) by inserting after paragraph (14) the following new paragraphs:
`(14) TRANSFER- The term `transfer' means the conveyance of technological or intellectual property, or the conversion of intellectual or technological advances into marketable goods, services, or articles of value, developed and generated in one place, to another through illegal or illicit means to a country, the government of which the Secretary of State has determined, for purposes of section 6(j)(1)(A) of the Export Administration Act of 1979 (as in effect pursuant to the International Emergency Economic Powers Act; 50 U.S.C. 1701 et seq.), section 40(d) of the Arms Export Control Act (22 U.S.C. 2780(d)), and section 620A of the Foreign Assistance Act of 1961 (22 U.S.C. 2371), is a government that has repeatedly provided support for acts of international terrorism.
`(15) TRANSSHIPMENT- The term `transshipment' means the export from one country to another that passes through a third country, in which cargo is off-loaded and there is some change to conveyance.'.
SEC. 302. DENIAL OF TAX BENEFITS FOR TAXPAYERS ENGAGED IN BUSINESS ACTIVITY WITH IRAN PROHIBITED BY UNITED STATES LAW.
(a) In General- Section 901 of the Internal Revenue Code of 1986 (relating to taxes of foreign countries and of possessions of United States) is amended by redesignating subsection (m) as subsection (n) and by inserting after subsection (l) the following new subsection:
`(m) Taxpayers Engaged in Business Activity With Iran Prohibited by United States Law-
`(1) IN GENERAL- Notwithstanding any other provision of this part, in the case of a taxpayer which is a member of an expanded affiliated group any member of which, on any day during the taxable year, engaged in business activity with Iran which is prohibited by United States law, no credit shall be allowed under subsection (a) to the taxpayer for any income, war profits, or excess profits taxes paid or accrued (or deemed paid under section 902 or 960) to any country if such taxes are with respect to income attributable to a period any part of which occurs during such taxable year.
`(2) BUSINESS ACTIVITY- For purposes of paragraph (1)--
`(A) IN GENERAL- The term `business activity' means any of the following:
`(i) An entity described in subparagraph (D) that--
`(I) has in effect a contract that includes the responsibility for the development of petroleum resources, petroleum refining capacity, or liquefied natural gas located in Iran or (as the case may be), or
`(II) has in effect a contract providing for the general supervision and guarantee of another person's performance of a contract described in subclause (I).
`(ii) The purchase of a share of ownership, including an equity interest, in the development described in clause (i).
`(iii) Having in effect a contract providing for the participation in royalties, earnings, or profits in the development described in clause (i), without regard to the form of the participation.
`(B) GOODS, SERVICES, AND TECHNOLOGY- The term `business activity' includes the entry into, performance, or financing of a contract to sell or purchase goods, services, or technology.
`(C) SPECIAL RULE- For purposes of this paragraph, an amendment or other modification that is made, on or the date of the enactment of this subsection to an agreement or contract shall be treated as the entry of an agreement or contract.
`(D) ENTITIES DESCRIBED- For purposes of subparagraph (A), an entity described in this subparagraph is--
`(ii) a corporation, business association, partnership, society, trust, financial institution, insurer, underwriter, guarantor, and any other business organization,
`(iii) any foreign subsidiary of any entity described in clause (ii),
`(iv) any governmental entity operating as a business enterprise, such as an export credit agency, and
`(v) any successor to any entity described in clause (ii), (iii), or (iv).
`(3) TAXES ALLOWED AS A DEDUCTION, ETC- Sections 275 and 78 shall not apply to any tax which is not allowable as a credit under subsection (a) by reason of this subsection.
`(4) EXPANDED AFFILIATED GROUP- For purposes of paragraph (1), the term `expanded affiliated group' means an affiliated group (as defined in subsection (a) of section 1504 (without regard to subsections (b)(2), (b)(4), and (c) thereof)); except that section 1504(a) shall be applied by substituting `more than 50 percent' for `at least 80 percent' each place it appears.
`(5) REGULATIONS- The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this subsection, including regulations which impose appropriate reporting requirements.'.
(b) Income Included as Subpart F Income- Subsection (a) of section 952 is amended by striking `and' at the end of paragraph (4), by striking the period at the end of paragraph (5) and inserting `, and', and by inserting after paragraph (5) the following new paragraph:
`(6) all income of such corporation derived from all foreign countries during any period during which section 901(m) applies to such corporation.'.
(1) IN GENERAL- Part II of subchapter B of chapter 68 of the Internal Revenue Code of 1986 (relating to failure to comply with certain information reporting requirements) is amended by adding at the end the following new section:
`SEC. 6726. FAILURE TO REPORT INFORMATION UNDER SECTION 901(m).
`(a) In General- In the case of each failure described in subsection (c) by any person, such person shall pay a penalty of $100,000 for each day in the noncompliance period with respect to which the failure relates.
`(b) Noncompliance Period- For purposes of this section, the term `noncompliance period' means, with respect to any failure, the period--
`(1) beginning on the date such failure first occurs; and
`(2) ending on the date such failure is corrected.
`(c) Failures Subject to Penalty- For purposes of subsection (a), the failure described in this subsection is a failure to comply with any requirement contained in the regulations prescribed under section 901(m).'.
(2) CLERICAL AMENDMENT- The table of sections for part II of subchapter B of chapter 68 of such Code is amended by adding at the end the following new item:
`Sec. 6726. Failure to report information under section 901(m).'.
(d) Effective Date- The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
SEC. 303. INCOME TAX OF FOREIGN CORPORATIONS ENGAGED IN BUSINESS ACTIVITY WITH IRAN PROHIBITED BY UNITED STATES LAW.
(a) In General- Subpart B of part II of subchapter N of chapter 1 of the Internal Revenue Code of 1986 (relating to foreign corporations) is amended by inserting after section 884 the following new section:
`SEC. 884A. INCOME TAX OF FOREIGN CORPORATIONS ENGAGED IN BUSINESS ACTIVITY WITH IRAN PROHIBITED BY UNITED STATES LAW.
`In the case of a foreign corporation which is engaged in business activity with Iran prohibited by United States law--
`(1) in respect of tax on income--
`(A) section 881(a) shall be applied by substituting `45 percent' for `30 percent';
`(B) subsections (b), (c), (d) and (e) of section 881 shall not apply;
`(C) tax imposed pursuant to section 882 shall be imposed at a rate of 45 percent;
`(D) section 883 shall not apply; and
`(E) section 884(a) shall be applied by substituting `45 percent' for `30 percent'; and
`(2) in respect of withholding--
`(A) section 1442(a) shall be applied by substituting `45 percent' for `30 percent'; and
`(B) section 1442(c) shall not apply.'.
(b) Clerical Amendment- The table of sections for subpart B of part II of subchapter N of chapter 1 of such Code is amended by inserting after the item relating to section 884 the following new item:
`Sec. 884A. Income tax of foreign corporations engaged in business activity with Iran prohibited by United States law.'.
(c) Effective Date- The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
SEC. 304. COMPENSATION FOR FORMER UNITED STATES HOSTAGES IN IRAN FUND.
(a) Creation of Fund- There is established a fund to be known as the `Compensation for Former United States Hostages in Iran Fund' (in this section referred to as the `Fund'), consisting of such amounts as may be appropriated to the Fund as provided by this section.
(b) Transfers to Fund- There are hereby appropriated to the Fund amounts equivalent to the taxes received in the Treasury by reason of the amendments made by sections 302 and 303 of this Act.
(c) Expenditures From Fund- Amounts in the Fund shall be available, as provided by appropriation Acts, for making expenditures to pay claims to the United States citizens held hostage in Iran, and to members of the families of such United States citizens, who are identified as plaintiffs or class members in Case Number 1:00CV03110 (EGS) or Case Number 1:00CV00716 (HHK) in the United States District Court for the District of Columbia.
TITLE IV--DEFINITIONS
SEC. 401. DEFINITIONS.
(1) APPROPRIATE CONGRESSIONAL COMMITTEES- The term `appropriate congressional committees' means--
(A) the Committee on Foreign Affairs and the Committee on Appropriations of the House of Representatives; and
(B) the Committee on Foreign Relations and the Committee on Appropriations of the Senate.
(2) GOVERNMENT OF SYRIA- The term `Government of Syria' includes any agency or instrumentality of the Government of Syria, including any entity that is controlled by the Government of Syria.
(3) GOVERNMENT OF IRAN- The term `Government of Iran' includes any agency or instrumentality of the Government of Iran, including any entity that is controlled by the Government of Iran.
(4) GOVERNMENT OF NORTH KOREA- The term `Government of North Korea' includes any agency or instrumentality of the Government of North Korea, including any entity that is controlled by the Government of North Korea.
(5) WEAPONS OF MASS DESTRUCTION PROGRAMS- The term `weapons of mass destruction programs' means--
(A) and chemical weapons, biological weapons, radiological or nuclear procurement and development programs and efforts;
(B) ballistic missile procurement and development programs and efforts; and
(C) other actions in violation of the Waasenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies, the Missile Technology Control Regime, the Australia Group, the Nuclear Suppliers' Group, the Zangger Committee, and any other international agreement or arrangement to which the United States is a party that restricts the export of chemical, biological, nuclear, and other weapons and their delivery systems, and effectively restricts the export of dual use components of such weapons and their delivery systems.
END