110TH CONGRESS 
1ST SESSION H. R. 2347 
AN ACT 
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, companies that sell arms to the Government of 
Iran, and financial institutions that extend $20,000,000 
or more in credit to the Government of Iran for 45 
days or more, 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 conspiracy to commit genocide, as well as 
‘‘direct and public incitement to commit genocide’’. 
(2) 133 member states of the United Nations 
have ratified the Genocide Convention and thereby 
pledged to prosecute individuals who violate the 
Genocide Convention’s prohibition on incitement to 
commit 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 dis-
graceful blot [on] the face of the Islamic world,’’ and 
declared 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. 
(5) Following Iran’s failure to comply with Res-
olution 1737, on March 24, 2007, the United Na-
tions Security Council unanimously approved Reso-
lution 1747, to tighten sanctions on Iran, imposing 
a ban on arms sales and expanding the freeze on as-
sets, in response to the country’s uranium-enrich-
ment activities.
(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 con-
vince Tehran that it can no longer afford to engage 
in dangerous, destabilizing activities such as its nu-
clear weapons program and its support for ter-
rorism. 
(8) Foreign persons that have invested in Iran’s 
energy sector, despite Iran’s support of international 
terrorism and its nuclear program, have provided 
additional financial means for Iran’s activities in 
these areas, and many United States persons have 
unknowingly 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 nu-
clear weapons capability. 
(10) Policy makers and fund managers may 
find moral, prudential, or reputational reasons to di-
vest from companies that accept the business risk of 
operating in countries that are subject to inter-
national 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 sanc-
tions imposed by the United States. 
SEC. 3. TRANSPARENCY IN CAPITAL MARKETS. 
(a) LIST OF PERSONS INVESTING IN IRAN ENERGY 
SECTOR OR SELLING ARMS TO THE GOVERNMENT OF 
IRAN.— 
(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 or a 
designee of the President shall, using only publicly 
available (including proprietary) information, ensure 
publication in the Federal Register of a list of each 
person, whether within or outside of the United 
States, that, as of the date of the publication, has 
an investment of more than $20,000,000 in the en-
ergy sector in Iran, sells arms to the Government of
Iran, or is a financial institution that extends 
$20,000,000 or more in credit to the Government of 
Iran for 45 days or more. To the extent practicable, 
the list shall include a description of the investment 
made by each such person, including the dollar 
value, intended purpose, and status of the invest-
ment, as of the date of the publication. 
(2) PRIOR NOTICE TO PERSONS.—The Presi-
dent or a designee of the President shall, at least 30 
days before the list is published under paragraph 
(1), notify each person that the President or the des-
ignee, 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 President or a designee of the President 
may delay including that person on the list for up 
to 60 days if the President or the designee deter-
mines and certifies to the Congress that the person 
has taken specific and effective actions to terminate 
the involvement 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 
remove a person from the list before the next publi-
cation of the list under paragraph (1) if the Presi-
dent or the designee determines that the person does 
not have an investment of more than $20,000,000 in 
the energy sector in Iran, does not sell arms to the 
Government of Iran, and is not a financial institu-
tion that extends $20,000,000 or more in credit to 
the Government of Iran for 45 days or more. 
(b) PUBLICATION ON WEBSITE.—The President or a 
designee of the President shall ensure that the list is pub-
lished on an appropriate government 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 govern-
ments, 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, persons that sell 
arms to the Government of Iran, and financial institutions
that extend $20,000,000 or more in credit to the Govern-
ment of Iran for 45 days or more. 
(b) AUTHORITY TO DIVEST.— 
(1) IN GENERAL.—Notwithstanding any other 
provision of law, a State or local government may 
adopt and enforce measures to divest the assets of 
the State or local government from, or prohibit in-
vestment of the assets of the State or local govern-
ment in— 
(A) persons that are included on the list 
most recently published under section 3(a)(1), 
as modified under section 3(a)(4); 
(B) persons that sell arms to the Govern-
ment of Iran; 
(C) financial institutions that extend 
$20,000,000 or more in credit to the Govern-
ment of Iran for 45 days or more; and 
(D) persons that are included on any list 
of entities with investments in Iran, entities 
doing business in Iran, or entities doing busi-
ness with the Government of Iran, which is 
issued pursuant to a law that— 
(i) authorizes a State or local govern-
ment to divest from, or prohibits a State
or local government from investing assets 
in, the persons; and 
(ii) is enacted by a State or local gov-
ernment on or before the first publication 
of a list under section 3. 
(2) DEFINITIONS.—In this subsection: 
(A) INVESTMENT.—The ‘‘investment’’ of 
assets 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 
instrument, that is controlled, directly or indi-
rectly, by a State or local government. 
(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. 
SEC. 5. SAFE HARBOR FOR CHANGES OF INVESTMENT 
POLICIES 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 
following 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 
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 companies that are in-
cluded 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 
POLICIES BY EMPLOYEE BENEFIT PLANS. 
Section 502 of the Employee Retirement Income Se-
curity 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 sec-
tion 3(a)(1) of the Iran Sanctions Enabling Act, as modi-
fied under section 3(a)(4) of such Act.’’. 
SEC. 7. RULE OF INTERPRETATION. 
Nothing in this Act shall be interpreted to limit the 
authority of any person to divest, or avoid investment in, 
any asset, or to adopt or enforce any measure to do so. 
SEC. 8. DEFINITIONS. 
In this Act: 
(1) IRAN.—the term ‘‘Iran’’ includes any agen-
cy or instrumentality of Iran. 
(2) ENERGY SECTOR.—The term ‘‘energy sec-
tor’’ refers to activities to develop petroleum or nat-
ural gas resources, or nuclear power. 
(3) PERSON.—The term ‘‘person’’ means— 
(A) a natural person as well as a corpora-
tion, business association, partnership, society, 
trust, any other nongovernmental entity, orga-
nization, or group; 
(B) any governmental entity or instrumen-
tality of a government, including a multilateral 
development institution (as defined in section 
1701(c)(3) of the International Financial Insti-
tutions Act); and