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The Text of the Dodd-Frank Act
International Association of Risk and Compliance Professionals (IARCP)
 
Dodd Frank Act Section 1504
SEC. 1504. DISCLOSURE OF PAYMENTS BY RESOURCE EXTRACTION ISSUERS.

Section 13 of the Securities Exchange Act of 1934 (15 U.S.C. 78m), as amended by this Act, is amended by adding at the end the following:

‘‘(q) DISCLOSURE OF PAYMENTS BY RESOURCE EXTRACTION ISSUERS.—

‘‘(1) DEFINITIONS.
—In this subsection—

‘‘(A) the term ‘commercial development of oil, natural gas, or minerals’ includes exploration, extraction, processing, export, and other significant actions relating to oil, natural gas, or minerals, or the acquisition of a license for any such activity, as determined by the Commission;

‘‘(B) the term ‘foreign government’ means a foreign government, a department, agency, or instrumentality of a foreign government, or a company owned by a foreign government, as determined by the Commission;

‘‘(C) the term ‘payment’—

‘‘(i) means a payment that is—

‘‘(I) made to further the commercial development of oil, natural gas, or minerals; and

‘‘(II) not de minimis; and

‘‘(ii) includes taxes, royalties, fees (including license fees), production entitlements, bonuses, and other material benefits, that the Commission, consistent with the guidelines of the Extractive Industries Transparency Initiative (to the extent practicable), determines are part of the commonly recognized revenue stream for the commercial development of oil, natural gas, or minerals;

‘‘(D) the term ‘resource extraction issuer’ means an issuer that—

‘‘(i) is required to file an annual report with the Commission; and

‘‘(ii) engages in the commercial development of oil, natural gas, or minerals;

‘‘(E) the term ‘interactive data format’ means an electronic data format in which pieces of information are identified using an interactive data standard; and

‘‘(F) the term ‘interactive data standard’ means standardized list of electronic tags that mark information included in the annual report of a resource extraction issuer.

‘‘(2) DISCLOSURE.—

‘‘(A) INFORMATION REQUIRED.
—Not later than 270 days after the date of enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Commission shall issue final rules that require each resource extraction issuer to include in an annual report of the resource extraction issuer information relating to any payment made by the resource extraction issuer, a subsidiary of the resource extraction issuer, or an entity under the control of the resource extraction issuer to a foreign government or the Federal Government for the purpose of the commercial development of oil, natural gas, or minerals, including—

‘‘(i) the type and total amount of such payments made for each project of the resource extraction issuer relating to the commercial development of oil, natural gas, or minerals; and

‘‘(ii) the type and total amount of such payments made to each government.

‘‘(B) CONSULTATION IN RULEMAKING.—In issuing rules under subparagraph (A), the Commission may consult with any agency or entity that the Commission determines is relevant.

‘‘(C) INTERACTIVE DATA FORMAT.—The rules issued under subparagraph (A) shall require that the information included in the annual report of a resource extraction issuer be submitted in an interactive data format.

‘‘(D) INTERACTIVE DATA STANDARD.—

‘‘(i) IN GENERAL.
—The rules issued under subparagraph (A) shall establish an interactive data standard for the information included in the annual report of a resource extraction issuer.

‘‘(ii) ELECTRONIC TAGS.—The interactive data standard shall include electronic tags that identify, for any payments made by a resource extraction issuer to a foreign government or the Federal Government—

‘‘(I) the total amounts of the payments, by category;

‘‘(II) the currency used to make the payments;

‘‘(III) the financial period in which the payments were made;

‘‘(IV) the business segment of the resource extraction issuer that made the payments;

‘‘(V) the government that received the payments, and the country in which the government is located;

‘‘(VI) the project of the resource extraction issuer to which the payments relate; and

‘‘(VII) such other information as the Commission may determine is necessary or appropriate in the public interest or for the protection of investors.

‘‘(E) INTERNATIONAL TRANSPARENCY EFFORTS.—To the extent practicable, the rules issued under subparagraph (A) shall support the commitment of the Federal Government to international transparency promotion efforts relating to the commercial development of oil, natural gas, or minerals.

‘‘(F) EFFECTIVE DATE.—With respect to each resource extraction issuer, the final rules issued under subparagraph (A) shall take effect on the date on which the resource extraction issuer is required to submit an annual report relating to the fiscal year of the resource extraction issuer that ends not earlier than 1 year after the date on which the Commission issues final rules under subparagraph (A).

‘‘(3) PUBLIC AVAILABILITY OF INFORMATION.—

‘‘(A) IN GENERAL
.—To the extent practicable, the Commission shall make available online, to the public, a compilation of the information required to be submitted under the rules issued under paragraph (2)(A).

‘‘(B) OTHER INFORMATION.—Nothing in this paragraph shall require the Commission to make available online information other than the information required to be submitted under the rules issued under paragraph (2)(A).

‘‘(4) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to the Commission such sums as may be necessary to carry out this subsection.’’.
 


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