1.This Act may be cited as the
Promoting Fully Informed Investment
Decision Making Act of 2007
.
2.State sponsor of
terrorism definedIn this Act,
the term state sponsor of terrorism means any country, the
government of which has been determined by the Secretary of State to have
repeatedly provided support for acts of international terrorism pursuant
to—
(1)section
6(j)(1)(A) of the Export Administration Act of 1979 (50 U.S.C. App.
2405(j)(1)(A)) (or any successor thereto);
(2)section 40(d) of
the Arms Export Control Act (22 U.S.C. 2780(d)); or
(3)section 620A(a)
of the Foreign Assistance Act of 1961 (22 U.S.C. 2371(a)).
3.Securities and
exchange commission disclosure of business ties to State sponsors of
terror
(a)Requirement for
a securities and exchange commission reportNot later than 90
days after the date of enactment of this Act and annually thereafter, the
Securities and Exchange Commission (in this Act referred to as the
Commission
) shall prepare and submit to Congress a report on
business activities carried out with state sponsors of terrorism.
(b)The
report required by subsection (a) shall include—
(1)a list of all
persons required to make periodic or other filings pursuant to section 13(a) or
15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a), 78o(d)) that
disclose in filings with the Commission business activity in or with a country
that is a state sponsor of terrorism, or an instrumentality of such a
country;
(2)a description of
such business activities carried out by each person referred to in paragraph
(1);
(3)the value of such
activities carried out by each person referred to in paragraph (1); and
(4)a description of
the disclosure standard in effect at the time at which the content of the
report was collected, if it has changed from the time of the first or most
recent report submitted pursuant to subsection (a), and the criteria for
persons to register under section 12(g) of the Securities Exchange Act of 1934
(15 U.S.C. 78l(g)).
(c)Publication of
disclosure dataThe Commission shall make the report required by
this section available on its website in an easily accessible and searchable
format, and shall regularly update the information on the website as new
information becomes available to the Commission.
(d)Strengthening
securities and exchange commission disclosure requirementNot
later than 180 days after the date of enactment of this Act, the Commission
shall issue regulations to require disclosure by all persons required to make
periodic or other filings pursuant to section 13(a) or 15(d) of the Securities
Exchange Act of 1934 (15 U.S.C. 78m(a), 78o(d)) of business activity in an
amount equal to more than $20,000,000, either directly or through an affiliate,
in or with a country that is a state sponsor of terrorism, or an
instrumentality of such country.
4.Government
Accountability Office reports
(a)Evaluation of
Securities and Exchange Commission reportNot later than 90 days
after the date of delivery of the report of the Commission under section 3, and
annually thereafter, the Comptroller General of the United States shall prepare
and submit to Congress a report that evaluates the completeness of the report
of the Commission under section 3, to include—
(1)a list, in
classified form, as necessary, of all persons, including foreign persons, that
are not included in the report of the Commission under section 3 that are
identified by the intelligence community (as that term is defined in section 3
of the National Security Act of 1947 (50 U.S.C. 401a)), the Secretary of
Commerce, the Secretary of Defense, the Secretary of Energy, the Secretary of
State, the Secretary of the Treasury, and other appropriate governmental
entities, as carrying out business activities in or with a country that is a
state sponsor of terrorism, or an instrumentality of such a country;
(2)a list of all
persons, including foreign persons, that are not included in the report of the
Commission under section 3 that are identified by relevant nongovernmental
entities as carrying out business activities in or with a country that is a
state sponsor of terrorism, or an instrumentality of such a country; and
(3)a description of
such business activities and the value of such activities for all persons
identified in paragraphs (1) and (2).
(b)Not later than 120 days after the date of delivery of the
report of the Commission under section 3, and annually thereafter, the
Comptroller General of the United States shall prepare and submit to Congress,
a report—
(1)that contains the
names of persons described in section 3(b)(1) that are included in each of the
major investable financial market indices and the holdings of the Federal
Thrift Savings Plan of the Federal Retirement Thrift Investment Board (in this
subsection referred to as the TSP
), including—
(A)the percentage of
each such index and TSP holdings comprised of such persons; and
(B)the dollar
capitalization of each such person;
(2)that contains, in
classified form, as necessary, the names of persons described in paragraphs (1)
and (2) of subsection (a) that are included in each of the major investable
financial market indices and the holdings of the TSP, including—
(A)the percentage of
each such index and TSP holdings comprised of such persons; and
(B)the dollar
capitalization of each such person; and
(3)the unclassified
portion of which is made available on the website of the Government
Accountability Office in an easily accessible and searchable format.
(c)Government
contracting reportNot later than 120 days after the date of
delivery of the report of the Commission under section 3, and annually
thereafter, the Comptroller General of the United States shall prepare and
submit to Congress, a report—
(1)that contains the
names of the persons described in section 3(b)(1), the nature of the activity,
and the value of United States Government active contracting for the
procurement of goods or services with any such person;
(2)that contains, in
classified form, as necessary, the names of persons described in paragraphs (1)
and (2) of subsection (a), the nature of the activity, and the value of United
States Government active contracting for the procurement of goods or services
with any such person; and
(3)the unclassified
portion of which is made available on the website of the Government
Accountability Office in an easily accessible and searchable format.
5.Sense Of
Congress Regarding Encouragement For Foreign Exchanges To Strengthen Disclosure
RequirementsIt is the sense
of the Congress that the United States Trade Representative, the Chairman of
the Commission, the Secretary of State, and other relevant representatives of
the United States Government should encourage United States allies to implement
disclosure standards that are similar to those required by this Act for the
securities exchanges of those countries.
6.Authorization
for certain divestment measures
(a)Investment
Company Act of 1940Section 13 of the Investment Company Act of
1940 (15 U.S.C. 80a–13) is amended by adding at the end the following:
(c)Safe harbor for
changes in investment policies
(1)Notwithstanding any other provision of Federal or State
law, no person may bring any civil, criminal, or administrative action against
any registered investment company or person providing services to such
registered investment company (including its investment adviser), or any
employee, officer, or director thereof, based solely upon the investment
company divesting from, or avoiding investing in, securities issued by persons
that have business ties to a state sponsor of terrorism.
(2)For
purposes of this subsection, the term person
includes the
Federal Government and any State or political subdivision of a
State.
.