The Cable

Reid tries to push through Iran sanctions bill

Senate Majority Leader Harry Reid (D-NV) is trying to pass a new Iran sanctions bill through the Senate without any amendments or debate in a legislative move many see as designed to prevent both Republicans and Democrats from adding even more sanctions to the legislation.

Reid announced on the Senate floor Tuesday morning that he wanted to bring up the Johnson-Shelby Iran Sanctions, Accountability and Human Rights Act of 2012, a new set of sanctions that would punish anyone who provides Iran with equipment or technology that facilitates censorship or the suppression of human rights, including weapons, rubber bullets, tear gas, and other riot control equipment -- as well as jamming, monitoring, and surveillance equipment. It also calls on the Obama administration to develop a more robust Internet freedom strategy for Iran and speed related assistance to pro-democracy activists in the country.

The legislation, named for Senate Banking Committee heads Tim Johnson (D-SD) and Richard Shelby (R-AL), would formally establish that U.S. policy is intended to prevent Iran from obtaining a nuclear weapon, and would require the administration to report extensively and repeatedly on its efforts to increase diplomatic and financial pressure on the Iranian regime.

But here's the rub: Reid wants to bring up the bill for passage by unanimous consent, meaning there would be no debate and no amendments offered. The bill could be passed by a simple voice vote if nobody objects, but Reid said the Republicans won't let it happen.

"I'm going to ask consent soon to moving forward on this unanimously reported bill out the Banking Committee. Unfortunately, I have been told that my Republican colleagues will object to moving forward with these new sanctions because they want to offer additional amendments," Reid said on the Senate floor Tuesday morning.

"I have Democrats who want to offer additional amendments also, but we don't have the time to slow down passage of this legislation," he added. "When we put this away, we're not going to be finished with Iran. ... But in an effort to get sanctions in place now, Democrats have agreed to streamline the process and refrain from offering their amendments. We can't afford to slow down the process."

Senate aides from both parties told The Cable that Reid's office is working behind the scenes to prevent more amendments that would strengthen the sanctions in ways the administration and Reid are resisting. The Cable has obtained the text and a detailed summary of one lengthy amendment that would add several new punitive measures to the bill.

The amendment isn't signed but it appears to come from the office of Sen. Mark Kirk (R-IL) because it contains expanded sanctions against all Iranian banks that matches legislation Kirk had already been working on. An aide to Kirk declined to comment on the amendment.

The summary of the proposed amendment includes a direct rebuttal to Reid's argument that the Johnson-Shelby bill should be passed quickly and that there will be plenty of other chances to sanction Iran after that.

"As Iran continues inching closer to ‘red lines' surrounding its illicit nuclear weapons program, S. 2101 will likely serve as the last legislative vehicle to impose further economic sanctions against the Islamic Republic until December," the summary reads. "Therefore, as long as opportunities exist to incorporate new ideas and creative sanctions into the legislation, we should seize upon those opportunities in overwhelming bipartisan fashion. In this way, we keep our promise to the American people and support the President's stated objective to exhaust every available diplomatic option."

The proposed amendment would expand sanctions on the Central Bank of Iran to include all Iranian banks and would threaten sanctions on any international firms that facilitate those banks' transactions, including the EU-based international transactions facilitator SWIFT and Clearstream, a firm that works with SWIFT to process worldwide money exchanges. Swift has already taken some actions to cut off Iran's Central Bank.

The amendment would also target the Iranian insurance industry, expand sanctions against the Iranian energy sector, target Iran's high-tech and telecommunications sectors, and try to narrow the conditions under which the administration can exempt third countries who are still buying oil from Iran from existing sanctions. The State Department exempted 11 countries from Iran sanctions last week and has yet to make a determination on 12 others.

There are plenty of other potential amendments out there as well. For example, a bill ruling out containment of a nuclear Iran led by Sens. Lindsey Graham (R-SC), Joe Lieberman (I-CT), and Bob Casey (D-PA), could also become an amendment.

By calling for unanimous consent on the Johnson-Shelby bill today, Reid is trying to portray the GOP as objecting to quick passage of Iran sanctions. It's likely that after he files for unanimous consent today and Senate Minority Leader Mitch McConnell (R-KY) objects, the two will retreat behind closed doors and negotiate a compromise way forward. A similar dynamic played out over the last round of sanctions when Kirk and Sen. Robert Menendez (D-NJ) wanted to sanction the Iranian Central Bank over the administration's objections.

"Sooner or later -- and most likely it will be sooner -- both sides are going to sit down together and figure out a way forward that everyone can live with -- reflecting the overwhelming bipartisan consensus that exists in support of additional Iran sanctions," one senior Senate aide told The Cable.

"Hopefully calm will prevail on all sides after today and the Majority Leader will authorize Chairman Johnson to negotiate with key Democrats and Republicans on the contents of a manager's amendment that includes everyone's best ideas," another senior Senate aide said. "In the end, the president says the window of diplomacy is shrinking and we owe it to the American people to consider every available non-military option."

UPDATE: In a short interview, Sen. Joe Lieberman (I-CT) said he does want to offer an amendment to the Johnson-Shelby bill and does not want to see it go through the senate via unanimous consent.

"Senator Graham and I are the lead sponsors of a bipartisan resolution that says containment is not an acceptable policy against Iran. With regard to the bill coming out of the banking committee, we're having a discussion with Sen. Reid about when to take it up and how many amendments to allow," Lieberman said.

"We are a little bit concerned. I'd really prefer to have a bipartisan agreement with a limited number of amendments on both sides. I think that's Sen. McConnell's position. So I'm going to talk to Sen. Reid and try to work that out."

Senate Minority Whip Jon Kyl (R-AZ) said this afternoon that Republicans will continue to object to moving forward on the bill until Kirk's amendment gets a hearing.

"I just wanted to say that Senator Kirk is doing a lot of homework but he's not here, would like to add an amendment -- a change to the proposal and therefore, would hope that we could work out something with the leader so that we could accommodate Senator Kirk's desire in that regard," Kyl said.

Late Tuesday afternoon, Sen. Rand Paul (R-KY) filed the formal objection to unanimous consent on the Johnson-Shelby bill, due to his desire to be able to offer an amendment of his own.

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