S.Amdt. 2226

1. Adds SEC. ___. STATE SPONSORS OF TERRORISM wherever appropriate

   Adds a section

   Inserted: SEC. ___. STATE SPONSORS OF TERRORISM.

   Inserted: (a) Definition.--In this section, the term "state sponsor of terrorism" means any country, the government of which has been determined by the Secretary of State to have repeatedly provided support for acts of international terrorism pursuant to--

   Inserted: (1) section 6(j)(1)(A) of the Export Administration Act of 1979 (50 U.S.C. App. 2405(j)(1)(A)) (or any successor thereto);

   Inserted: (2) section 40(d) of the Arms Export Control Act (22 U.S.C. 2780(d)); or

   Inserted: (3) section 620A(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 2371(a)).

   Inserted: (b) Securities and Exchange Commission Disclosure of Business Ties to State Sponsors of Terror.--

   Inserted: (1) Requirement for a securities and exchange commission report.--Not later than 90 days after the date of enactment of this Act and annually thereafter, the Securities and Exchange Commission (in this section referred to as the "Commission") shall prepare and submit to Congress a report on business activities carried out with state sponsors of terrorism.

   Inserted: (2) Content.--The report required by paragraph (1) shall include--

   Inserted: (A) a list of all persons required to make periodic or other filings pursuant to section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a), 78o(d)) that disclose in filings with the Commission business activity in or with a country that is a state sponsor of terrorism, or an instrumentality of such a country;

   Inserted: (B) a description of such business activities carried out by each person referred to in subparagraph (A);

   Inserted: (C) the value of such activities carried out by each person referred to in subparagraph (A); and

   Inserted: (D) a description of the disclosure standard in effect at the time at which the content of the report was collected, if it has changed from the time of the first or most recent report submitted pursuant to paragraph (1), and the criteria for persons to register under section 12(g) of the Securities Exchange Act of 1934 (15 U.S.C. 78l(g)).

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   Inserted: (3) Publication of report.--The Commission shall make the report required by this subsection available on its website in an easily accessible and searchable format.

   Inserted: (4) Strengthening securities and exchange commission disclosure requirement.--Not later than 180 days after the date of enactment of this Act, the Commission shall issue regulations to require disclosure by all persons required to make periodic or other filings pursuant to section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a), 78o(d)) of business activity in an amount equal to more than $1,000,000, either directly or through an affiliate, in or with a country that is a state sponsor of terrorism, or an instrumentality of such country.

   Inserted: (c) Report on Business Ties to State Sponsors of Terrorism.--

   Inserted: (1) Requirement for report.--Not later than 270 days after the date of enactment of this Act, and annually thereafter, the Director of National Intelligence shall submit to Congress a classified report on business activities carried out with state sponsors of terrorism.

   Inserted: (2) Data.--The Director of National Intelligence shall use all data available from elements of the intelligence community (as that term is defined in section 3 of the National Security Act of 1947 (50 U.S.C. 401a)), the Secretary of Commerce, the Secretary of Defense, the Secretary of Energy, the Secretary of State, the Secretary of the Treasury, the Chairman of the Securities and Exchange Commission, and other appropriate governmental and nongovernmental entities to prepare the report required by paragraph (1).

   Inserted: (3) Content.--The report required by paragraph (1) shall include--

   Inserted: (A) a list of persons, including foreign persons, that carry out business activities in or with a country that is a state sponsor of terrorism, or an instrumentality of such a country;

   Inserted: (B) a description of such business activities carried out by each such person;

   Inserted: (C) the value of such activities carried out by each such person;

   Inserted: (D) an assessment of likely omissions and incompleteness in the report required by paragraph (1);

   Inserted: (E) if necessary, differentiation by the degree of reliability of the data used to prepare the such report;

   Inserted: (F) a description of available options to increase the completeness and reliability of such data;

   Inserted: (G) an assessment of the economic condition of each state sponsor of terrorism; and

   Inserted: (H) an assessment of the effects of implementing various divestiture and sanctions options against each state sponsor of terrorism.

   Inserted: (d) Government Accountability Office Reports.--

   Inserted: (1) Evaluation of director of national intelligence and securities and exchange commission reports.--Not later than 90 days after the date of delivery of the report of the Director of National Intelligence under subsection (c), and annually thereafter, the Comptroller General of the United States shall prepare and submit to Congress a report that compares the report of the Commission submitted under subsection (b) and the report of the Director submitted under subsection (c), to include--

   Inserted: (A) a comparison of included persons and business activities;

   Inserted: (B) measures that evaluate the completeness of each report;

   Inserted: (C) measures that evaluate the reliability of each report; and

   Inserted: (D) an assessment of options to increase the completeness and reliability of such data.

   Inserted: (2) Investment report.--Not later than 90 days after the date of delivery of the report of the Director of National Intelligence under subsection (c), and annually thereafter, the Comptroller General of the United States shall prepare and submit to Congress, a report--

   Inserted: (A) that, in an unclassified section, contains the names of persons described in subsection (b)(2)(A) that are included in each of the major investable financial market indices and the holdings of the Federal Thrift Savings Plan of the Federal Retirement Thrift Investment Board (in this paragraph referred to as the "TSP"), including--

   Inserted: (i) the percentage of each such index and TSP holdings comprised of such persons; and

   Inserted: (ii) the dollar capitalization of each such person;

   Inserted: (B) that, in a classified section, contains the names of persons described in subsection (c)(3)(A) that are included in each of the major investable financial market indices and the holdings of the TSP, including--

   Inserted: (i) the percentage of each such index and TSP holdings comprised of such persons; and

   Inserted: (ii) the dollar capitalization of each such person; and

   Inserted: (C) the unclassified section of which is made available on the website of the Government Accountability Office in an easily accessible and searchable format.

   Inserted: (3) Government contracting report.--Not later than 90 days after the date of delivery of the report of the Director of National Intelligence under subsection (c), and annually thereafter, the Comptroller General of the United States shall prepare and submit to Congress a report--

   Inserted: (A) that, in an unclassified section, contains the names of the persons described in subsection (b)(2)(A), the nature of the activity, and the value of United States Government active contracting for the procurement of goods or services with any such person;

   Inserted: (B) that, in a classified section, contains the names of the persons described in subsection (c)(3)(A), the nature of the activity, and the value of United States Government active contracting for the procurement of goods or services with any such person; and

   Inserted: (C) the unclassified section of which is made available on the website of the Government Accountability Office in an easily accessible and searchable format.

   Inserted: (e) Authorization for Certain State and Local Divestment Measures.--

   Inserted: (1) In general.--Notwithstanding any other provision of law, any State, locality, or United States college or university may adopt measures to prohibit any investment of State, local, college, or university assets in the Government of a state sponsor of terror, or in any person with a qualifying business relationship with a state sponsor of terrorism.

   Inserted: (2) Applicability.--Paragraph (1) shall apply to measures adopted before, on, or after the date of enactment of this Act.

   Inserted: (f) Investment Company Act of 1940.--Section 13 of the Investment Company Act of 1940 (15 U.S.C. 80a-13) is amended by adding at the end the following:

   Inserted: "(c) Safe Harbor for Changes in Investment Policies.--

   Inserted: "(1) In general.--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 solely upon the investment company divesting from, or avoiding investing in, securities issued by 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(b) of that Act.

   Inserted: "(2) Definition.--For purposes of this subsection, the term 'person' includes the Federal Government and any State or political subdivision of a State.".

   Inserted: (g) Increased Penalties Under the International Emergency Economic Powers Act.--

   Inserted: (1) In general.--Section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) is amended to read as follows:

   Inserted: "SEC. 206. PENALTIES.

   Inserted: "(a) Unlawful Acts.--It shall be unlawful for a person to violate, attempt to violate, conspire to violate, or cause a violation of any license, order, regulation, or prohibition issued under this title.

   Inserted: "(b) Civil Penalty.--A civil penalty may be imposed on any person who commits an unlawful act described in subsection (a) in an amount not to exceed the greater of--

   Inserted: "(1) $250,000; or

   Inserted: "(2) an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

   Inserted: "(c) Criminal Penalty.--A person who willfully commits, willfully attempts to commit, or willfully conspires to commit, or aids or abets in the commission of, an unlawful act described in subsection (a) shall, upon conviction, be fined not more than $1,000,000, or if a natural person, may be imprisoned for not more than 20 years, or both.".

   Inserted: (2) Effective date.--The amendment made by this subsection applies to violations described in section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) with respect to which enforcement action is pending or commenced on or after the date of enactment of this Act.

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As printed