I 
110TH CONGRESS 
1ST SESSION H. R. 2347 
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 
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’’. 
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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 
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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 
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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 
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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 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 Secretary of the 
Treasury, in consultation with the Secretary of En-
ergy, the Secretary of State, the Securities and Ex-
change Commission, and the heads of other appro-
priate Federal departments and agencies, shall pub-
lish in the Federal Register 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 energy sector in 
Iran. The list shall include a description of the in-
vestment 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 Sec-
retary of the Treasury shall, at least 30 days before 
the list is published under paragraph (1), notify 
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each person that the Secretary intends to include on 
the list. 
(3) DELAY
IN
INCLUDING
PERSONS
ON
THE 
LIST.—After notifying a person under paragraph 
(2), the Secretary of the Treasury may delay includ-
ing that person on the list for up to 60 days if the 
Secretary determines and certifies to the Congress 
that the person has taken specific and effective ac-
tions 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 Secretary of the Treasury may remove a person 
from the list before the next publication of the list 
under paragraph (1) if the Secretary, in consultation 
with, as appropriate, the Secretary of Energy, the 
Secretary of State, the Securities and Exchange 
Commission, and the heads of other Federal depart-
ments and agencies, 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 Secretary of 
the Treasury shall maintain on the website of the Depart-
ment of the Treasury the names of the persons on the 
list under subsection (a), updating the list as necessary 
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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 . 
(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, persons that are included on the most re-
cent list published under section 3(a)(1), as modified 
under section 3(a)(3). 
(2) APPLICABILITY.—This subsection applies to 
measures adopted by a State or local government be-
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fore, on, or after the date of the enactment of this 
Act. 
(3) 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 by a State or 
local government. 
(C) ASSETS OF A STATE OR LOCAL GOV-
ERNMENT.—The term ‘‘assets of the State or 
local government’’ refers to assets that the 
State or local government controls. 
(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. 
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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 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, as modified under section 
3(b) of that Act. For purposes of this subsection the term 
‘person’ shall include the Federal government, 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-
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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. SENSE OF THE CONGRESS REGARDING THRIFT SAV-
INGS PLAN. 
It is the sense of the Congress that the Federal Re-
tirement Thrift Investment Board should initiate efforts 
to provide a terror-free international investment option 
among the funds of the Thrift Savings Fund that would 
invest in stocks in which the International Stock Index 
Investment Fund may invest under section 8438(b)(4) of 
title 5, United States Code, other than the stock of compa-
nies that do business in any country the government of 
which the Secretary of State has determined, for purposes 
of section 6(j) of the Export Administration Act of 1979 
(as continued in effect pursuant to the International 
Emergency Economic Powers Act), section 40 of the Arms 
Export Control Act, section 620A of the Foreign Assist-
ance Act of 1961, or other provision of law, is a govern-
ment that has repeatedly provided support for acts of 
international terrorism. 
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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. 
(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; and 
(C) any successor, subunit, or subsidiary of 
any entity described in subparageraph (B) or 
(C). 
(4) STATE.—The term ‘‘State’’ includes the 
District of Columbia, the Commonwealth or Puerto 
Rico, the Virgin Islands, Guam, American Samoa, 
and the Commonwealth of the Northern Mariana Is-
lands. 
(5) STATE OR LOCAL GOVERNMENT.— 
(A) IN
GENERAL.—The term ‘‘State or 
local government’’ includes— 
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(i) any State and any agency or in-
strumentality thereof; 
(ii) any local government within a 
State, and any agency or instrumentality 
thereof; and 
(iii) any public institution of higher 
education. 
(B) PUBLIC INSTITUTION OF HIGHER EDU-
CATION.—The term ‘‘public institution of high-
er education’’ means a public institution of 
higher education within the meaning of the 
Higher Education Act of 1965. 
SEC. 9. SUNSET. 
This Act shall terminate 30 days after the date on 
which the President has certified to Congress that— 
(1) the Government of Iran has ceased pro-
viding support for acts of international terrorism 
and no longer satisfies the requirements for designa-
tion as a state-sponsor of terrorism for purposes of 
section 6(j) of the Export Administration Act of 
1979, section 620A of the Foreign Assistance Act of 
1961, section 40 of the Arms Export Control Act, 
or any other provision of law; and 
(2) Iran has ceased the pursuit, acquisition, 
and development of nuclear, biological, and chemical 
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weapons and ballistic missiles and ballistic missile 
launch technology. 
Æ 
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