110 HR 1357 IH: To require divestiture of current investments in Iran, to U.S. House of Representatives 2007-03-06 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 110th CONGRESS 1st Session H. R. 1357 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. Fortuño, 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.

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.

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.

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.