I 

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. FORTUN ̃O, 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 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: 


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1 (1) The United States and the international 

2 community face no greater threat to their security 

3 than the prospect of rogue regimes who support 

4 international terrorism obtaining weapons of mass 

5 destruction, and particularly nuclear weapons. 

6 (2) Iran is the leading state sponsor of inter7 national terrorism and is close to achieving nuclear 

8 weapons capability but has paid no price for nearly 

9 20 years of deception over its nuclear program. For10 eign entities that have invested in Iran’s energy sec11 tor, despite Iran’s support of international terrorism 

12 and its nuclear program, have afforded Iran a free 

13 pass while many United States entities have un14 knowingly invested in those same foreign entities. 

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

16 stake in preventing Iran from acquiring nuclear 

17 weapons. 

18 (4) United States investors can have consider19 able influence over the commercial decisions of the 

20 foreign entities in which they have invested. 

21 (b) PUBLICATION IN FEDERAL REGISTER.—Not 

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

23 this Act and every six months thereafter, the President 

24 shall ensure publication in the Federal Register of a list 

25 of all United States and foreign entities that have invested 


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

2 August 5, 1996, and the date of such publication. Such 

3 list shall include an itemization of individual investments 

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

5 purpose, and current status of each such investment. 

6 (c) DISCLOSURE TO INVESTORS.— 

7 (1) IN GENERAL.—Not later than 30 days after 

8 the date of publication of a list in the relevant Fed9 eral Register under subsection (b), managers of 

10 United States Government pension plans or thrift 

11 savings plans, managers of pension plans maintained 

12 in the private sector by plan sponsors in the United 

13 States, and managers of mutual funds sold or dis14 tributed in the United States shall notify investors 

15 that the funds of such investors are invested in an 

16 entity included on the list and that the funds will be 

17 divested from such investments. Such notification 

18 shall contain the following information: 

19 (A) The name or other identification of the 

20 entity. 

21 (B) The amount of the investment in the 

22 entity. 

23 (C) The potential liability to the entity if 

24 sanctions are imposed by the United States on 

25 Iran or on the entity. 


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1 (D) The potential liability to investors if 

2 such sanctions are imposed. 

3 (E) The measures being undertaken by the 

4 managers to divest from such investments. 

5 (2) FOLLOW-UP NOTIFICATION.— 

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

7 subparagraph (C), in addition to the notifica8 tion required under paragraph (1), such man9 agers shall also include such notification in 

10 every prospectus and in every regularly pro11 vided quarterly, semi-annual, or annual report 

12 provided to investors, if the funds of such inves13 tors are invested in an entity included on the 

14 list. 

15 (B) CONTENTS OF NOTIFICATION.—The 

16 notification described in subparagraph (A) shall 

17 be displayed prominently in any such pro18 spectus or report and shall contain the informa19 tion described in paragraph (1). 

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

21 publication of a list in the relevant Federal 

22 Register under subsection (b), such managers 

23 verifiably divest all investments of such plans or 

24 funds in any entity included on the list and 

25 such managers do not initiate any new investVerDate Aug 31 2005 22:33 Mar 08, 2007 Jkt 059196 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1357.IH H1357

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1 ment in any other such entity, such managers 

2 shall not be required to include the notification 

3 described in subparagraph (A) in any pro4 spectus or report provided to investors. 

5 (d) DIVESTITURE FROM IRAN.—Upon notification 

6 under subsection (c), managers of United States Govern7 ment pension plans or thrift savings plans, shall take, to 

8 the extent consistent with the legal and fiduciary duties 

9 otherwise imposed on them, immediate steps to divest all 

10 investments of such plans or funds in any entity included 

11 on the list. 

12 (e) SENSE OF CONGRESS RELATING TO FURTHER

13 DIVESTITURE FROM IRAN.—It is the sense of Congress 

14 that upon publication of a list in the relevant Federal Reg15 ister under subsection (b), managers of pension plans 

16 maintained in the private sector by plan sponsors in the 

17 United States and managers of mutual funds sold or dis18 tributed in the United States should take immediate steps 

19 to divest all investments of such plans or funds in any 

20 entity included on the list. 

21 (f) PROHIBITION ON FUTURE INVESTMENT.—Upon 

22 publication of a list in the relevant Federal Register under 

23 subsection (b), there shall be, to the extent consistent with 

24 the legal and fiduciary duties otherwise imposed on them, 

25 no future investment in any entity included on the list by 


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1 managers of United States Government pension plans or 

2 thrift savings plans, managers of pension plans main3 tained in the private sector by plan sponsors in the United 

4 States, or managers of mutual funds sold or distributed 

5 in the United States. 

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

7 Not later than 30 days after the date of publication 

8 of a list in the relevant Federal Register under section 

9 1(b), the Office of Global Security Risks within the Divi10 sion of Corporation Finance of the United States Securi11 ties and Exchange Commission shall issue a report con12 taining a list of the United States and foreign entities 

13 identified in accordance with such section, a determination 

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

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

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

17 faces United States litigation, sanctions, or similar cir18 cumstances that are reasonably likely to have a material 

19 adverse impact on the financial condition or operations of 

20 the entity. 

21 SEC. 3. SUNSET. 

22 This Act shall terminate 30 days after the date on 

23 which: 

24 (1) the President has certified to Congress that 

25 the Government of Iran has ceased providing supVerDate Aug 31 2005 22:33 Mar 08, 2007 Jkt 059196 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1357.IH H1357

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1 port for acts of international terrorism and no 

2 longer satisfies the requirements for designation as 

3 a state-sponsor of terrorism for purposes of section 

4 6(j) of the Export Administration Act of 1979, sec5 tion 620A of the Foreign Assistance Act of 1961, 

6 section 40 of the Arms Export Control Act, or any 

7 other provision of law; and 

8 (2) Iran has permanently ceased the pursuit, 

9 acquisition, and development of nuclear, biological, 

10 and chemical weapons and missiles. 

Æ 


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