IB 
Union Calendar No. 179 
110TH CONGRESS 
1ST SESSION H. R. 2347 
[Report No. 110–277, Part I] 
To authorize State and local governments to direct divestiture from, and 
prevent investment in, companies with investments of $20,000,000 or 
more in Iran’s energy sector, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 16, 2007 
Mr. FRANK of Massachusetts (for himself, Mr. LANTOS, Mr. SHERMAN, Mr. 
SHAYS, Mr. LYNCH, Mr. ACKERMAN, Mr. KLEIN of Florida, and Mr. 
WEXLER) introduced the following bill; which was referred to the Com-
mittee on Financial Services, and in addition to the Committees on Edu-
cation and Labor and Oversight and Government Reform, for a period 
to be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
JULY 30, 2007 
Additional sponsors: Mr. MARSHALL, Mr. BACA, Mr. CAPUANO, Mr. BERMAN, 
Ms. ROS-LEHTINEN, Mr. GUTIERREZ, Ms. BERKLEY, Mr. HODES, Mr. 
HONDA, Ms. WASSERMAN SCHULTZ, Mr. PALLONE, Mr. HASTINGS of 
Florida, Mr. VAN HOLLEN, Mr. CULBERSON, Mr. FOSSELLA, Mr. TIM 
MURPHY of Pennsylvania, Mr. RANGEL, Mr. GERLACH, Mr. BURTON of 
Indiana, Mrs. DRAKE, Mr. MCHENRY, Mr. CANTOR, Mr. PLATTS, Mr. 
RENZI, Mr. BARROW, Mr. FRANKS of Arizona, Mr. PERLMUTTER, Mr. 
MCNERNEY, Mr. ENGEL, Mr. MICHAUD, Mr. PATRICK J. MURPHY of 
Pennsylvania, Ms. HARMAN, Mr. RAMSTAD, Mr. BARTLETT of Maryland, 
Mr. KNOLLENBERG, Ms. LEE, and Mr. GARRETT of New Jersey 
JULY 30, 2007 
Reported from the Committee on Financial Services with an amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
JULY 30, 2007 
Committees on Education and Labor and Oversight and Government Reform 
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discharged; committed to the Committee of the Whole House on the State 
of the Union and ordered to be printed 
[For text of introduced bill, see copy of bill as introduced on May 16, 2007] 
A BILL 
To authorize State and local governments to direct divesti-
ture from, and prevent investment in, companies with 
investments of $20,000,000 or more in Iran’s energy 
sector, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Iran Sanctions Ena-
bling Act of 2007’’. 
SEC. 2. FINDINGS. 
The Congress finds as follows: 
(1) The Convention on the Prevention and Pun-
ishment of the Crime of Genocide, completed at Paris, 
December 9, 1948 (commonly referred to as the 
‘‘Genocide Convention’’) defines genocide as, among 
other things, the act of killing members of a national, 
ethnic, racial, or religious group with the intent to 
destroy, in whole or in part, the targeted group. In 
addition, the Genocide Convention also prohibits con-
spiracy to commit genocide, as well as ‘‘direct and 
public incitement to commit genocide’’. 
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(2) 133 member states of the United Nations 
have ratified the Genocide Convention and thereby 
pledged to prosecute individuals who violate the Geno-
cide Convention’s prohibition on incitement to com-
mit genocide, as well as those individuals who commit 
genocide directly. 
(3) On October 27, 2005, at the World Without 
Zionism Conference in Tehran, Iran, the President of 
Iran, Mahmoud Ahmadinejad, called for Israel to be 
‘‘wiped off the map,’’ described Israel as ‘‘a disgrace-
ful blot [on] the face of the Islamic world,’’ and de-
clared that ‘‘[a]nybody who recognizes Israel will 
burn in the fire of the Islamic nation’s fury.’’ Presi-
dent Ahmadinejad has subsequently made similar 
types of comments, and the Government of Iran has 
displayed inflammatory symbols that express similar 
intent. 
(4) On December 23, 2006, the United Nations 
Security Council unanimously approved Resolution 
1737, which bans the supply of nuclear technology 
and equipment to Iran and freezes the assets of cer-
tain organizations and individuals involved in Iran’s 
nuclear program, until Iran suspends its enrichment 
of uranium, as verified by the International Atomic 
Energy Agency. 
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(5) Following Iran’s failure to comply with Res-
olution 1737, on March 24, 2007, the United Nations 
Security Council unanimously approved Resolution 
1747, to tighten sanctions on Iran, imposing a ban 
on arms sales and expanding the freeze on assets, in 
response to the country’s uranium-enrichment activi-
ties. 
(6) There are now signs of domestic discontent 
within Iran, and targeted financial and economic 
measures could produce further political pressure 
within Iran. According to the Economist Intelligence 
Unit, the nuclear crisis ‘‘is imposing a heavy oppor-
tunity cost on Iran’s economic development, slowing 
down investment in the oil, gas, and petrochemical 
sectors, as well as in critical infrastructure projects, 
including electricity’’. 
(7) Targeted financial measures represent one of 
the strongest non-military tools available to convince 
Tehran that it can no longer afford to engage in dan-
gerous, destabilizing activities such as its nuclear 
weapons program and its support for terrorism. 
(8) Foreign persons that have invested in Iran’s 
energy sector, despite Iran’s support of international 
terrorism and its nuclear program, have provided ad-
ditional financial means for Iran’s activities in these 
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areas, and many United States persons have unknow-
ingly invested in those same foreign persons. 
(9) There is an increasing interest by States, 
local governments, educational institutions, and pri-
vate institutions to seek to disassociate themselves 
from companies that directly or indirectly support the 
Government of Iran’s efforts to achieve a nuclear 
weapons capability. 
(10) Policy makers and fund managers may find 
moral, prudential, or reputational reasons to divest 
from companies that accept the business risk of oper-
ating in countries that are subject to international 
economic sanctions or that have business relationships 
with countries, governments, or entities with which 
any United States company would be prohibited from 
dealing because of economic sanctions imposed by the 
United States. 
SEC. 3. TRANSPARENCY IN U.S. CAPITAL MARKETS. 
(a) LIST OF PERSONS INVESTING IN IRAN ENERGY 
SECTOR.— 
(1) PUBLICATION
OF
LIST.—Not later than 6 
months after the date of the enactment of this Act and 
every 6 months thereafter, the President shall ensure 
publication in the Federal Register of a list of each 
person, whether within or outside of the United 
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States, that, as of the date of the publication, has an 
investment of more than $20,000,000 in the energy 
sector in Iran, and each person that is an inter-
national financial institution that, as of the date of 
the publication, has any investment in the energy sec-
tor in Iran. The list shall include a description of the 
investment made by each such person, including the 
dollar value, intended purpose, and status of the in-
vestment, as of the date of the publication. 
(2) PRIOR NOTICE TO PERSONS.—The President 
or a designee of the President shall, at least 30 days 
before the list is published under paragraph (1), no-
tify each person that the President or his designee, as 
the case may be, intends to include on the list. 
(3) DELAY
IN
INCLUDING
PERSONS
ON
THE 
LIST.—After notifying a person under paragraph (2), 
the the President or a designee of the President may 
delay including that person on the list for up to 60 
days if the President or designee determines and cer-
tifies to the Congress that the person has taken spe-
cific and effective actions to terminate the involve-
ment of the person in the activities that resulted in 
the notification under paragraph (2). 
(4) REMOVAL OF PERSONS FROM THE LIST.— 
The President or a designee of the President may re-
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move a person from the list before the next publica-
tion of the list under paragraph (1) if the President 
or a designee of the President, determines that the 
person no longer has an investment of more than 
$20,000,000 in the energy sector in Iran. 
(b) PUBLICATION ON WEBSITE.—The President shall 
ensure that the list is published on an appropriate govern-
ment website, updating the list as necessary to take into 
account any person removed from the list under subsection 
(a)(4). 
(c) DEFINITION.—In this section, the term ‘‘invest-
ment’’ has the meaning given that term in section 14(9) 
of the Iran Sanctions Act (50 U.S.C. 1701 App.). 
SEC. 4. AUTHORITY OF STATE AND LOCAL GOVERNMENTS 
TO DIVEST FROM CERTAIN COMPANIES IN-
VESTED IN IRAN’S ENERGY SECTOR. 
(a) STATEMENT OF POLICY.—It is the policy of the 
United States to support the decision of State governments, 
local governments, and educational institutions to divest 
from, and to prohibit the investment of assets they control 
in, persons that have investments of more than $20,000,000 
in Iran’s energy sector. 
(b) AUTHORITY TO DIVEST.— 
(1) IN
GENERAL.—Notwithstanding any other 
provision of law, a State or local government may 
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adopt and enforce measures to divest the assets of the 
State or local government from, or prohibit invest-
ment of the assets of the State or local government 
in— 
(A) persons that are included on the most 
recent list published under section 3(a)(1), as 
modified under section 3(a)(4); and 
(B) persons having an investment in, or 
carrying on a trade or business (within the 
meaning of section 162 of the Internal Revenue 
Code of 1986) in or with, Iran. 
(2) APPLICABILITY.—This subsection applies to 
measures adopted by a State or local government be-
fore, on, or after the date of the enactment of this Act. 
(3) DEFINITIONS.—In this subsection: 
(A) INVESTMENT.—The ‘‘investment’’ of as-
sets includes— 
(i) a commitment or contribution of 
assets; and 
(ii) a loan or other extension of credit 
of assets. 
(B) ASSETS.—The term ‘‘assets’’ refers to 
public monies and includes any pension, retire-
ment, annuity, or endowment fund, or similar 
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instrument, that is controlled by a State or local 
government. 
(C) ASSETS OF A STATE OR LOCAL GOVERN-
MENT.—The term ‘‘assets of the State or local 
government’’ refers to assets that the State or 
local government controls. 
(4) ADDITIONAL DEFINITION.—For purposes of 
paragraph (1)(B), the term ‘‘investment’’ means the 
acquisition of property or assets for the production of 
revenue. 
(c) PREEMPTION.—A measure of a State or local gov-
ernment that is authorized by subsection (b) is not pre-
empted by any Federal law or regulation except to the ex-
tent that a person is unable to comply with both the meas-
ure and the Federal law or regulation. 
SEC. 5. SAFE HARBOR FOR CHANGES OF INVESTMENT POLI-
CIES BY MUTUAL FUNDS. 
Section 13 of the Investment Company Act of 1940 (15 
U.S.C. 80a–13) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(c) SAFE HARBOR FOR CHANGES IN INVESTMENT 
POLICIES.—Notwithstanding any other provision of Fed-
eral 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 in-
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vestment company (including its investment adviser), or 
any employee, officer, or director thereof, based upon the 
investment company divesting from, or avoiding investing 
in, securities issued by companies that are included on the 
most recent list published under section 3(a)(1) of the Iran 
Sanctions Enabling Act of 2007, as modified under section 
3(b) of that Act. For purposes of this subsection the term 
‘person’ shall include the Federal government, and any 
State or political subdivision of a State.’’. 
SEC. 6. SAFE HARBOR FOR CHANGES OF INVESTMENT POLI-
CIES BY EMPLOYEE BENEFIT PLANS. 
Section 502 of the Employee Retirement Income Secu-
rity Act of 1974 (29 U.S.C. 1132) is amended by adding 
at the end the following new subsection: 
‘‘(n) No person shall be treated as breaching any of 
the responsibilities, obligations, or duties imposed upon fi-
duciaries by this title, and no action may be brought under 
this section against any person, for divesting plan assets 
from, or avoiding investing plan assets in, persons that are 
included on the most recent list published under section 
3(a)(1) of the Iran Sanctions Enabling Act, as modified 
under section 3(a)(4) of such Act.’’. 
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