II 109th CONGRESS 1st Session S. 299 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.

1.

Short title

This Act may be cited as the “Investor in Iran Accountability Act of 2005”.

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.

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.

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).

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.

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.

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.