[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1357 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 1357

  To require divestiture of current investments in Iran, to prohibit 
 future investments in Iran, and to require disclosure to investors of 
               information relating to such investments.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 6, 2007

 Ms. Ros-Lehtinen (for herself, Mr. Blunt, Mr. Lantos, Mr. Cantor, Mr. 
Sherman, Mr. Fossella, Mr. Pence, Mr. Chabot, Mr. Tancredo, Mr. Burton 
of Indiana, Mr. Rohrabacher, Mr. Smith of New Jersey, Mr. Fortuno, Mr. 
  Wexler, Mr. Crowley, Mr. Klein of Florida, and Mr. McCaul of Texas) 
 introduced the following bill; which was referred to the Committee on 
Financial Services, and in addition to the Committees on Oversight and 
     Government Reform and Education and Labor, 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 require divestiture of current investments in Iran, to prohibit 
 future investments in Iran, and to require disclosure to investors of 
               information relating to such investments.

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

SECTION 1. UNITED STATES PENSION PLANS.

    (a) Findings.--Congress finds the following:
            (1) The United States and the international community face 
        no greater threat to their security than the prospect of rogue 
        regimes who support international terrorism obtaining weapons 
        of mass destruction, and particularly nuclear weapons.
            (2) Iran is the leading state sponsor of international 
        terrorism and is close to achieving nuclear weapons capability 
        but has paid no price for nearly 20 years of deception over its 
        nuclear program. Foreign entities that have invested in Iran's 
        energy sector, despite Iran's support of international 
        terrorism and its nuclear program, have afforded Iran a free 
        pass while many United States entities have unknowingly 
        invested in those same foreign entities.
            (3) United States investors have a great deal at stake in 
        preventing Iran from acquiring nuclear weapons.
            (4) United States investors can have considerable influence 
        over the commercial decisions of the foreign entities in which 
        they have invested.
    (b) Publication in Federal Register.--Not later than six months 
after the date of the enactment of this Act and every six months 
thereafter, the President shall ensure publication in the Federal 
Register of a list of all United States and foreign entities that have 
invested more than $20,000,000 in Iran's energy sector between August 
5, 1996, and the date of such publication. Such list shall include an 
itemization of individual investments of each such entity, including 
the dollar value, intended purpose, and current status of each such 
investment.
    (c) Disclosure to Investors.--
            (1) In general.--Not later than 30 days after the date of 
        publication of a list in the relevant Federal Register under 
        subsection (b), managers of United States Government pension 
        plans or thrift savings plans, managers of pension plans 
        maintained in the private sector by plan sponsors in the United 
        States, and managers of mutual funds sold or distributed in the 
        United States shall notify investors that the funds of such 
        investors are invested in an entity included on the list and 
        that the funds will be divested from such investments. Such 
        notification shall contain the following information:
                    (A) The name or other identification of the entity.
                    (B) The amount of the investment in the entity.
                    (C) The potential liability to the entity if 
                sanctions are imposed by the United States on Iran or 
                on the entity.
                    (D) The potential liability to investors if such 
                sanctions are imposed.
                    (E) The measures being undertaken by the managers 
                to divest from such investments.
            (2) Follow-up notification.--
                    (A) In general.--Except as provided in subparagraph 
                (C), in addition to the notification required under 
                paragraph (1), such managers shall also include such 
                notification in every prospectus and in every regularly 
                provided quarterly, semi-annual, or annual report 
                provided to investors, if the funds of such investors 
                are invested in an entity included on the list.
                    (B) Contents of notification.--The notification 
                described in subparagraph (A) shall be displayed 
                prominently in any such prospectus or report and shall 
                contain the information described in paragraph (1).
                    (C) Good-faith exception.--If, upon publication of 
                a list in the relevant Federal Register under 
                subsection (b), such managers verifiably divest all 
                investments of such plans or funds in any entity 
                included on the list and such managers do not initiate 
                any new investment in any other such entity, such 
                managers shall not be required to include the 
                notification described in subparagraph (A) in any 
                prospectus or report provided to investors.
    (d) Divestiture From Iran.--Upon notification under subsection (c), 
managers of United States Government pension plans or thrift savings 
plans, shall take, to the extent consistent with the legal and 
fiduciary duties otherwise imposed on them, immediate steps to divest 
all investments of such plans or funds in any entity included on the 
list.
    (e) Sense of Congress Relating to Further Divestiture From Iran.--
It is the sense of Congress that upon publication of a list in the 
relevant Federal Register under subsection (b), managers of pension 
plans maintained in the private sector by plan sponsors in the United 
States and managers of mutual funds sold or distributed in the United 
States should take immediate steps to divest all investments of such 
plans or funds in any entity included on the list.
    (f) Prohibition on Future Investment.--Upon publication of a list 
in the relevant Federal Register under subsection (b), there shall be, 
to the extent consistent with the legal and fiduciary duties otherwise 
imposed on them, no future investment in any entity included on the 
list by managers of United States Government pension plans or thrift 
savings plans, managers of pension plans maintained in the private 
sector by plan sponsors in the United States, or managers of mutual 
funds sold or distributed in the United States.

SEC. 2. REPORT BY OFFICE OF GLOBAL SECURITY RISKS.

    Not later than 30 days after the date of publication of a list in 
the relevant Federal Register under section 1(b), the Office of Global 
Security Risks within the Division of Corporation Finance of the United 
States Securities and Exchange Commission shall issue a report 
containing a list of the United States and foreign entities identified 
in accordance with such section, a determination of whether or not the 
operations in Iran of any such entity constitute a political, economic, 
or other risk to the United States, and a determination of whether or 
not the entity faces United States litigation, sanctions, or similar 
circumstances that are reasonably likely to have a material adverse 
impact on the financial condition or operations of the entity.

SEC. 3. SUNSET.

    This Act shall terminate 30 days after the date on which:
            (1) the President has certified to Congress that the 
        Government of Iran has ceased providing support for acts of 
        international terrorism and no longer satisfies the 
        requirements for designation as a state-sponsor of terrorism 
        for purposes of section 6(j) of the Export Administration Act 
        of 1979, section 620A of the Foreign Assistance Act of 1961, 
        section 40 of the Arms Export Control Act, or any other 
        provision of law; and
            (2) Iran has permanently ceased the pursuit, acquisition, 
        and development of nuclear, biological, and chemical weapons 
        and missiles.
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