I 

109TH CONGRESS 

1ST SESSION H. R. 1743 

To encourage divestiture of current investments in Iran and discourage future 

investments in Iran and to require disclosure to investors of information 

relating to such investments. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 20, 2005 

Ms. ROS-LEHTINEN (for herself, Mr. LANTOS, Mr. CHABOT, and Mr. ACKERMAN) introduced the following bill; which was referred to the Committee 

on Financial Services, and in addition to the Committees on Government 

Reform and Education and the Workforce, 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 encourage divestiture of current investments in Iran and 

discourage future investments in Iran and to require 

disclosure to investors of information relating to such 

investments. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. UNITED STATES PENSION PLANS. 

4 (a) FINDINGS.—Congress finds the following: 

5 (1) The United States and the international 

6 community face no greater threat to their security 
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1 than the prospect of rogue regimes who support 

2 international terrorism obtaining weapons of mass 

3 destruction, and particularly nuclear weapons. 

4 (2) Iran is the leading state sponsor of inter5 national terrorism and is close to achieving nuclear 

6 weapons capability but has paid no price for nearly 

7 twenty years of deception over its nuclear program. 

8 Foreign entities that have invested in Iran’s energy 

9 sector, despite Iran’s support of international ter10 rorism and its nuclear program, have afforded Iran 

11 a free pass while many United States entities have 

12 unknowingly invested in those same foreign entities. 

13 (3) United States investors have a great deal at 

14 stake in preventing Iran from acquiring nuclear 

15 weapons. 

16 (4) United States investors can have consider17 able influence over the commercial decisions of the 

18 foreign entities in which they have invested. 

19 (b) PUBLICATION IN FEDERAL REGISTER.—Not 

20 later than six months after the date of the enactment of 

21 this Act and every six months thereafter, the President 

22 shall ensure publication in the Federal Register of a list 

23 of all United States and foreign entities that have invested 

24 more than $20,000,000 in Iran’s energy sector between 

25 August 5, 1996, and the date of such publication. Such 
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1 list shall include an itemization of individual investments 

2 of each such entity, including the dollar value, intended 

3 purpose, and current status of each such investment. 

4 (c) SENSE OF CONGRESS RELATING TO DIVESTI5 TURE FROM IRAN.—It is the sense of Congress that, upon 

6 publication of a list in the relevant Federal Register under 

7 subsection (b), managers of United States Government 

8 pension plans or thrift savings plans, managers of pension 

9 plans maintained in the private sector by plan sponsors 

10 in the United States, and managers of mutual funds sold 

11 or distributed in the United States should immediately ini12 tiate efforts to divest all investments of such plans or 

13 funds in any entity included on the list. 

14 (d) SENSE OF CONGRESS RELATING TO PROHIBI15 TION ON FUTURE INVESTMENT.—It is the sense of Con16 gress that, upon publication of a list in the relevant Fed17 eral Register under subsection (b), there should be no fu18 ture investment in any entity included on the list by man19 agers of United States Government pension plans or thrift 

20 savings plans, managers of pension plans maintained in 

21 the private sector by plan sponsors in the United States, 

22 and managers of mutual funds sold or distributed in the 

23 United States. 

24 (e) DISCLOSURE TO INVESTORS.— 
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1 (1) IN GENERAL.—Not later than 30 days after 

2 the date of publication of a list in the relevant Fed3 eral Register under subsection (b), managers of 

4 United States Government pension plans or thrift 

5 savings plans, managers of pension plans maintained 

6 in the private sector by plan sponsors in the United 

7 States, and managers of mutual funds sold or dis8 tributed in the United States shall notify investors 

9 that the funds of such investors are invested in an 

10 entity included on the list. Such notification shall 

11 contain the following information: 

12 (A) The name or other identification of the 

13 entity. 

14 (B) The amount of the investment in the 

15 entity. 

16 (C) The potential liability to the entity if 

17 sanctions are imposed by the United States on 

18 Iran or on the entity. 

19 (D) The potential liability to investors if 

20 such sanctions are imposed. 

21 (2) FOLLOW-UP NOTIFICATION.— 

22 (A) IN GENERAL.—Except as provided in 

23 subparagraph (C), in addition to the notifica24 tion required under paragraph (1), such man25 agers shall also include such notification in 
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1 every prospectus and in every regularly pro2 vided quarterly, semi-annual, or annual report 

3 provided to investors, if the funds of such inves4 tors are invested in an entity included on the 

5 list. 

6 (B) CONTENTS OF NOTIFICATION.—The 

7 notification described in subparagraph (A) shall 

8 be displayed prominently in any such pro9 spectus or report and shall contain the informa10 tion described in paragraph (1). 

11 (C) GOOD-FAITH EXCEPTION.—If, upon 

12 publication of a list in the relevant Federal 

13 Register under subsection (b), such managers 

14 verifiably divest all investments of such plans or 

15 funds in any entity included on the list and 

16 such managers do not initiate any new invest17 ment in any other such entity, such managers 

18 shall not be required to include the notification 

19 described in subparagraph (A) in any pro20 spectus or report provided to investors. 

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

22 Not later than 30 days after the date of publication 

23 of a list in the relevant Federal Register under section 

24 206(b), the Office of Global Security Risks within the Di25 vision of Corporation Finance of the United States Securi-
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1 ties and Exchange Commission shall issue a report con2 taining a list of the United States and foreign entities 

3 identified in accordance with such section, a determination 

4 of whether or not the operations in Iran of any such entity 

5 constitute a political, economic, or other risk to the United 

6 States, and a determination of whether or not the entity 

7 faces United States litigation, sanctions, or similar cir8 cumstances that are reasonably likely to have a material 

9 adverse impact on the financial condition or operations of 

10 the entity. 

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