Text: H.R.5833 — 111th Congress (2009-2010)All Bill Information (Except Text)

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Introduced in House (07/22/2010)


111th CONGRESS
2d Session
H. R. 5833

To amend the Securities Exchange Act of 1934 to require issuers to make disclosures related to Iranian investments, and for other purposes.


IN THE HOUSE OF REPRESENTATIVES
July 22, 2010

Mr. Deutch (for himself, Ms. Ros-Lehtinen, Mr. Ackerman, Mr. Burton of Indiana, and Mr. Klein of Florida) introduced the following bill; which was referred to the Committee on Financial Services


A BILL

To amend the Securities Exchange Act of 1934 to require issuers to make disclosures related to Iranian investments, 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 Transparency and Accountability Act of 2010” or the “ITA Act of 2010”.

SEC. 2. Disclosures required.

(a) In general.—Section 13 of the Securities Exchange Act of 1934 is amended by adding at the end the following new subsection:

“(m) Disclosure of Iranian investments.—

“(1) GENERAL DISCLOSURE REQUIRED.—Each issuer required to file an annual or quarterly report under subsection (a) shall include with such report a statement of whether, during the period since the issuer made the last such report, the issuer, or any subsidiary or affiliate of the issuer—

“(A) engaged in any activity that is a covered activity;

“(B) knowingly engaged in an activity described under section 104(c)(2) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 or knowingly violated regulations prescribed under section 104(d)(1) or 104(e)(1) of such Act; or

“(C) has had any ties to a company designated by the Secretary of the Treasury or the Secretary of State under Executive Order 13382 for contributing or supporting the proliferation activities of Iran.

“(2) SPECIFIC DISCLOSURE REQUIRED.—If the issuer, or any subsidiary or affiliate of the issuer, reports under paragraph (1)(A) that it has engaged in any activity that is a covered activity, then with respect to each such activity that is a covered entity, the issuer shall include with the statement described under paragraph (1) a detailed description of each such activity, including—

“(A) the nature and extent of such activity;

“(B) the revenues and profits, if any, attributable to such activity; and

“(C) whether the issuer, or the subsidiary or affiliate of the issuer, as applicable, intends to continue such activity.

“(3) INVESTIGATION OF DISCLOSURES.—With respect to any issuer that, in a statement described under paragraph (1), states that the issuer, or any subsidiary or affiliate of the issuer, engaged in any activity that is a covered activity, the President shall carry out an investigation upon receipt of such report to determine if the issuer, or the subsidiary or affiliate of the issuer, should be subject to sanctions under section 5 of the Iran Sanctions Act of 1996.

“(4) PUBLIC DISCLOSURE OF INFORMATION.—With respect to any information received by the Commission pursuant to paragraph (1) or (2), the Commission shall—

“(A) make such information available to the public, including on a dedicated location on the Commission’s website that lists all issuers from which the Commission received information pursuant to paragraph (1) or (2);

“(B) provide a copy of such information to the Secretary of State;

“(C) provide a copy of such information to the Secretary of the Treasury;

“(D) provide a copy of such information to the Administrator of the General Services Administration; and

“(E) provide a copy to the Committees on Foreign Affairs and Financial Services of the House of Representatives and the Committees on Foreign Relations and Banking, Housing, and Urban Affairs of the Senate.

“(5) COVERED ACTIVITY DEFINED.—For purposes of this subsection, the term ‘covered activity’ means an activity is of a type and involving an amount that could subject the issuer, or the subsidiary or affiliate of the issuer, as applicable, to sanctions under section 5 of the Iran Sanctions Act of 1996.

“(6) SUNSET.—The provisions of this subsection shall terminate on the date on which the President certifies to Congress that—

“(A) 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 under—

“(i) section 6(j)(1)(A) of the Export Administration Act of 1979 (50 U.S.C. App. 2405(j)(1)(A));

“(ii) section 40(d) of the Arms Export Control Act (22 U.S.C. 2780(d)); or

“(iii) section 620A(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 2371(a)); and

“(B) Iran has ceased the pursuit, acquisition, and development of nuclear, biological, and chemical weapons and ballistic missiles and ballistic missile launch technology.”.

(b) Effective date.—The amendment made by subsection (a) shall take effect with respect to reports required to be filed with the Securities and Exchange Act after the end of the 90-day period beginning on the date of the enactment of this Act.