Iran Sanctions Enabling Act of 2007 - Directs the Secretary of the Treasury to: (1) publish biannually in the Federal Register a list of each person, whether within or outside of the United States, that has an investment of more than $20 million in the energy sector in Iran; and (2) maintain on the website of the Department of the Treasury the names of the persons on such list.
States it is the policy of the United States to support the decision of state and local governments and educational institutions to divest from, and to prohibit the investment of assets they control in, persons included on the most recent list.
Authorizes a state or local government to adopt and enforce measures to divest its assets from, or prohibit investment of assets in, persons included on the most recent list.
Amends the Investment Company Act of 1940 to shield any registered investment company from civil, criminal, or administrative action based upon its divesting from, or avoiding investing in, securities issued by companies included on such most recent list.
Amends the Employee Retirement Income Security Act of 1974 to shield from treatment as breaching a fiduciary duty any person divesting plan assets from, or avoiding investing plan assets in, persons included on such most recent list.
Expresses the sense of the Congress that the Federal Retirement Thrift Investment Board should: (1) initiate efforts to provide a terror-free international investment option among the funds of the Thrift Savings Fund; and (2) initiate similar efforts to provide a genocide-free international investment option.
[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1430 Introduced in Senate (IS)]
110th CONGRESS
1st Session
S. 1430
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 SENATE OF THE UNITED STATES
May 17, 2007
Mr. Obama (for himself and Mr. Brownback) introduced the following
bill; which was read twice and referred to the Committee on Banking,
Housing, and Urban Affairs
_______________________________________________________________________
A BILL
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Iran Sanctions Enabling Act''.
SEC. 2. FINDINGS.
Congress finds as follows:
(1) The Convention on the Prevention and Punishment of the
Crime of Genocide, done 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 ``[d]irect 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 disgraceful 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.''
President Ahmadinejad has subsequently made similar types of
comments.
(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 certain 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 Resolution
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
activities.
(6) There are now signs of domestic discontent within Iran,
and targeted financial and economic measures could produce a
change in Iranian policy. According to the Economist
Intelligence Unit, the nuclear crisis ``is imposing a heavy
opportunity 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 the
Government of Iran that it can no longer afford to engage in
dangerous, 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 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 private 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 assets from
persons that accept the business risk of operating in countries
that are subject to international economic sanctions or that
have business relationships with countries, governments, or
entities with which any United States person would be
prohibited from dealing because of economic sanctions imposed
by the United States.
SEC. 3. TRANSPARENCY IN UNITED STATES CAPITAL MARKETS.
(a) List of Persons Investing in Iran Energy Sector.--
(1) Publication of list.--Not later than 180 days after the
date of the enactment of this Act, and every 180 days
thereafter, the Secretary of the Treasury, in consultation with
the Secretary of Energy, the Secretary of State, the Securities
and Exchange Commission, and the heads of other appropriate
Federal departments and agencies, shall publish in the Federal
Register a list of persons, whether within or outside of the
United States, that, as of the date of the publication, have
made an investment of more than $20,000,000 in the energy
sector of 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 investment, as of
the date of the publication of the list.
(2) Prior notice to persons.--Not later than 30 days before
the list is published under paragraph (1), the Secretary of the
Treasury shall notify 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) that the Secretary
intends to include such person on the list, the Secretary may
delay including such person on the list for not more than 60
days if the Secretary determines and certifies to Congress that
such person has taken specific and effective actions to divest
or terminate the investment in the energy sector of Iran 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 under paragraph (1)
before the next publication of the list 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 departments and agencies, determines
that the person has divested or terminated the investment in
the energy sector of Iran that resulted in the Secretary
including such person on the list.
(b) Publication on Website.--The Secretary of the Treasury shall
maintain on the website of the Department of the Treasury the names of
the persons on the list published under subsection (a)(1), 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 ``investment'' has the
meaning given that term in section 14(9) of the Iran Sanctions Act (50
U.S.C. 1701 note).
SEC. 4. AUTHORITY OF STATE AND LOCAL GOVERNMENTS TO DIVEST ASSETS FROM
CERTAIN COMPANIES INVESTED IN IRAN'S ENERGY SECTOR.
(a) 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 investment of the assets of the State or local
government in, persons that are included on the most recent
list published under section 3(a)(1), as modified under section
3(a)(4).
(2) Applicability.--This subsection applies to measures
adopted by a State or local government before, on, or after the
date of the enactment of this Act.
(3) Definitions.--In this subsection:
(A) Investment of the assets of the state or local
government.--The term ``investment of the assets of the
State or local government'' 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, retirement, annuity,
or endowment fund, or similar instrument, that is
controlled by a State or local government.
(b) Preemption.--A measure of a State or local government that is
authorized by subsection (a) is not preempted by any Federal law or
regulation except to the extent that a person is unable to comply with
both the measure and the 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 Federal 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(a)(4) 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 Security Act of 1974
(29 U.S.C. 1132) is amended by adding at the end the following new
subsection:
``(n) Divestment of Assets in Fiduciaries Investing in Iran.--No
person shall be treated as breaching any of the responsibilities,
obligations, or duties imposed upon fiduciaries 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.''.
SEC. 7. SENSE OF CONGRESS REGARDING THRIFT SAVINGS PLAN.
It is the sense of the Congress that--
(1) the Federal Retirement 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 companies
that do business in any country the government of which the
Secretary of State has determined is a government that has
repeatedly provided support for acts of international
terrorism, for purposes of section 40 of the Arms Export
Control Act (22 U.S.C. 2780), section 620A of the Foreign
Assistance Act of 1961 (22 U.S.C. 2371), section 6(j) of the
Export Administration Act of 1979 (50 U.S.C. App. 2405(j)), as
continued in effect pursuant to the International Emergency
Economic Powers Act (50 U.S.C. 1701 et seq.), or any other
provision of law relating to governments that provide support
for acts of international terrorism; and
(2) the Federal Retirement Thrift Investment Board should
initiate efforts similar to those described in paragraph (1) to
provide a genocide-free international investment option.
SEC. 8. DEFINITIONS.
In this Act:
(1) Iran.--The term ``Iran'' includes any agency or
instrumentality of the Government of Iran.
(2) Energy sector.--The term ``energy sector'' refers to
activities to develop petroleum or natural gas resources.
(3) Person.--The term ``person'' means a natural person as
well as a corporation, business association, partnership,
society, trust, any other nongovernmental entity, organization,
or group, and any governmental entity or instrumentality of a
government.
(4) State.--The term ``State'' includes the District of
Columbia, the Commonwealth of Puerto Rico, the Virgin Islands,
Guam, American Samoa, and the Commonwealth of the Northern
Mariana Islands.
(5) State or local government.--The term ``State or local
government'' includes--
(A) any State and any agency or instrumentality
thereof;
(B) any local government within a State, and any
agency or instrumentality thereof; and
(C) any public institution of higher education, as
defined in section 102 of the Higher Education Act of
1965 (20 U.S.C. 1002).
SEC. 9. SUNSET.
The provisions of 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 providing support for
acts of international terrorism and no longer satisfies the
requirements for designation as a state sponsor of terrorism
for purposes of section 40 of the Arms Export Control Act (22
U.S.C. 2780), section 620A of the Foreign Assistance Act of
1961 (22 U.S.C. 2371), section 6(j) of the Export
Administration Act of 1979 (50 U.S.C. App. 2405(j)), as
continued in effect pursuant to the International Emergency
Economic Powers Act (50 U.S.C. 1701 et seq.), or any other
provision of law relating to governments that provide support
for acts of international terrorism;
(2) the Government of Iran has ceased the pursuit,
acquisition, and development of nuclear, biological, and
chemical weapons and ballistic missiles and ballistic missile
launch technology; and
(3) the Government of Iran has retracted the statements of
the President of Iran, Mahmoud Ahmadinejad, calling for the
destruction of Israel.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S6309-6310)
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Sponsor introductory remarks on measure. (CR S10141-10142)
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