[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 299 Introduced in Senate (IS)]







109th CONGRESS
  1st Session
                                 S. 299

To make information regarding certain investments in the energy sector 
        in Iran available to the public, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            February 7, 2005

   Mr. Wyden introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
To make information regarding certain investments in the energy sector 
        in Iran available to the public, 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 ``Investor in Iran Accountability Act 
of 2005''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) The Department of State's Patterns of Global Terrorism 
        report for 2003 stated that ``Iran remained the most active 
        state sponsor of terrorism in 2003''.
            (2) That report further stated that--
                    (A) Iran continues to provide funding, safehaven, 
                training, and weapons to known terrorist groups, 
                including Hizballah, HAMAS, the Palestine Islamic 
                Jihad, and the Popular Front for the Liberation of 
                Palestine; and
                    (B) the Government of Iran's poor human rights 
                record continues to worsen.
            (3) In 1979, in response to the Islamic Revolution in Iran 
        and the holding of United States citizens as hostages in Iran, 
        the United States imposed economic sanctions against Iran that 
        prohibit virtually all trade and investment activities with 
        Iran by citizens of the United States or United States 
        companies.
            (4) The United States does not prohibit foreign 
        subsidiaries of United States companies from investing in Iran 
        if the foreign subsidiary is independent of the United States 
        parent company.
            (5) A number of subsidiaries of United States companies 
        appear to be taking advantage of this condition and are 
        investing in the energy sector in Iran through such 
        subsidiaries.
            (6) According to the Energy Information Administration of 
        the Department of Energy, Iran is the second largest oil 
        producer in the Organization of the Petroleum Exporting 
        Countries (OPEC) and holds 10 percent of the world's proven oil 
        reserves.
            (7) According to the Energy Information Administration, the 
        economy of Iran relies heavily on revenues generated by the 
        export of oil and such revenues account for approximately 80 
        percent of Iran's total annual export earnings, nearly one-half 
        of the annual budget of the Government of Iran, and as much as 
        one-fifth of the gross domestic product of Iran.
            (8) According to the Energy Information Administration, 
        Iran is actively seeking significant new foreign investment in 
        the energy sector and experts believe that with sufficient 
        investment Iran could increase its crude oil production 
        capacity significantly.
            (9) The Department of Justice is conducting a criminal 
        investigation into whether United States companies have 
        violated any law by trading or investing with Iran through a 
        subsidiary company that may not be completely independent of 
        the parent company.
            (10) The Securities and Exchange Commission has determined 
        that significant corporate operations in countries subject to 
        economic sanctions, such as Iran, can represent a material risk 
        to investors in the United States and that such investments 
        should be properly disclosed.

SEC. 3. POLICY OF THE UNITED STATES.

    It is the policy of the United States--
            (1) to enforce fully existing economic sanctions imposed by 
        United States law against Iran, including sanctions imposed 
        under the Iran and Libya Sanctions Act of 1996 (50 U.S.C. 1701 
        note) on persons that make certain investments that contribute 
        to Iran's ability to develop and exploit its petroleum and 
        natural gas resources;
            (2) to make available to the public information regarding a 
        United States person or a person that is controlled in fact by 
        a United States person who maintains any direct or indirect 
        investment in the energy sector in Iran; and
            (3) to seek international cooperation in fully enforcing 
        economic sanctions against Iran and in prohibiting any direct 
        or indirect investment in Iran until Iran ceases to support 
        international terrorism.

SEC. 4. DEFINITIONS.

    In this Act:
            (1) Controlled in fact.--The term ``controlled in fact'' 
        includes--
                    (A) with respect to a corporation, the holding of 
                at least 50 percent (by vote or value) of the capital 
                structure of the corporation; and
                    (B) with respect to a legal entity other than a 
                corporation, the holding of interests representing at 
                least 50 percent of the capital structure of the 
                entity.
            (2) Energy sector.--The term ``energy sector'' means any 
        research, exploration, development, production, sale, 
        distribution, or advertising of natural gas, oil, or petroleum 
        resources or nuclear power.
            (3) State.--The term ``State'' means each of the several 
        States of the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, Guam, the Virgin Islands, and 
        other territories or possessions of the United States.
            (4) United states person.--The term ``United States 
        person'' means any citizen of the United States, permanent 
        resident alien, or entity organized under the laws of the 
        United States or of any State, wherever located (including 
        foreign branches).

SEC. 5. PUBLICATION OF INFORMATION ON INVESTMENTS.

    (a) Requirement to Publish.--Not later than 120 days after the date 
of enactment of this Act, the Secretary of the Treasury shall publish 
in the Federal Register and make available to the public on the 
Internet website of the Department of the Treasury--
            (1) a list of each United States person or each person that 
        is controlled in fact by a United States person that maintains 
        any direct or indirect investment in the energy sector in Iran;
            (2) a list of each foreign person that owned investments in 
        the energy sector in Iran with a total value of more than 
        $1,000,000 during the 12-month period ending on the date of the 
        publication in the Federal Register; and
            (3) a list of--
                    (A) any United States person that holds the 
                securities of a person described in paragraph (1) or 
                (2) valued at more than $100,000;
                    (B) any investment company registered under section 
                8 of the Investment Company Act of 1940 that invests, 
                reinvests, or trades in the securities of a person 
                described in paragraph (1) or (2);
                    (C) any pension plan or other Federal or State 
                retirement plan that invests in the securities of 
                persons described in paragraph (1) or (2); and
                    (D) such other investors in the securities of 
                persons described in paragraph (1) or (2) as the 
                Secretary determines is appropriate to carry out the 
                policy set out in section 3.
    (b) Requirement of Update.--The Secretary of the Treasury shall 
update the lists described in paragraphs (1) through (3) of subsection 
(a) at least once during each calendar year. Such updates shall be 
published in the Federal Register and made available to the public on 
the Internet website of the Department of the Treasury.

SEC. 6. INTERNATIONAL COOPERATION.

    The President, acting through the Secretary of the Treasury, the 
Secretary of State, or the head of any other appropriate Federal 
department or agency, shall undertake negotiations with the government 
of a foreign country to prohibit any direct or indirect investment in 
the energy sector in Iran by any person that is controlled in fact by 
that foreign country.

SEC. 7. EXTENSION OF THE IRAN AND LIBYA SANCTIONS ACT OF 1996.

    Section 13(b) of the Iran and Libya Sanctions Act of 1996 (50 
U.S.C. 1701 note) is amended by striking ``10'' and inserting ``15''.
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