I 

108TH CONGRESS 

2D SESSION H. R. 3955

To require the Securities and Exchange Commission to require public companies to disclose their payments to foreign governments for the purposes 

of natural resources exploration, development, and extractions rights. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 11, 2004

Mr. ISRAEL introduced the following bill; which was referred to the Committee 

on Financial Services 

A BILL

To require the Securities and Exchange Commission to require public companies to disclose their payments to foreign governments for the purposes of natural resources 

exploration, development, and extractions rights.

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Democracy Develop5 ment Act of 2004’’. 

6 SEC. 2. RULEMAKING REQUIRED. 

7 (a) REVISION OF DISCLOSURE REQUIREMENTS RE8 QUIRED.—The Securities and Exchange Commission shall 
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•HR 3955 IH 

1 revise its rules and regulations under sections 13 and 

2 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 

3 78m, 78o(d)) to require each issuer subject to such sec4 tions to disclose in the annual and quarterly reports of 

5 such issuer the aggregate payments by such issuer made 

6 in connection with the securing of exploration, develop7 ment, exploitation, extraction, and production rights for 

8 natural resources to any foreign government or any other 

9 public entity of foreign countries. Such aggregate pay10 ments shall include taxes, royalties, fees, and other 

11 amounts paid in such connection. 

12 (b) MINIMUM PAYMENTS EXCEPTED.—Such disclo13 sure requirement shall not apply to an issuer if the 

14 amount of such aggregate payments by such issuer for the 

15 reporting period are less than $250,000. 

16 (c) DEADLINE FOR REVISIONS.—The Securities and 

17 Exchange Commission shall prescribe the revisions re18 quired by subsection (a) not later than 6 months after the 

19 date of enactment of this Act. 

20 (d) DEFINITION OF NATURAL RESOURCES.—For 

21 purposes of this section, the term ‘‘natural resources’’ 

22 means oil, gas, and minerals.

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•HR 3955 IH 

1 revise its rules and regulations under sections 13 and 

2 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 

3 78m, 78o(d)) to require each issuer subject to such sec4 tions to disclose in the annual and quarterly reports of 

5 such issuer the aggregate payments by such issuer made 

6 in connection with the securing of exploration, develop7 ment, exploitation, extraction, and production rights for 

8 natural resources to any foreign government or any other 

9 public entity of a foreign countries. Such aggregate pay10 ments shall include taxes, royalties, fees, and other 

11 amounts paid in such connection. 

12 (b) MINIMUM PAYMENTS EXCEPTED.—Such disclo13 sure requirement shall not apply to an issuer if the 

14 amount of such aggregate payments by such issuer for the 

15 reporting period are less than $250,000. 

16 (c) DEADLINE FOR REVISIONS.—The Securities and 

17 Exchange Commission shall prescribe the revisions re18 quired by subsection (a) not later than 6 months after the 

19 date of enactment of this Act. 

20 (d) DEFINITION OF NATURAL RESOURCES.—For 

21 purposes of this section, the term ‘‘natural resources’’ 

22 means oil, gas, and minerals.

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