§78m. Periodical and other reports
(p) Disclosures relating to conflict minerals originating in the Democratic Republic of the Congo
(A) In general
Not later than 270 days after July 21, 2010, the Commission shall promulgate regulations requiring any person described in paragraph (2) to disclose annually, beginning with the person's first full fiscal year that begins after the date of promulgation of such regulations, whether conflict minerals that are necessary as described in paragraph (2)(B), in the year for which such reporting is required, did originate in the Democratic Republic of the Congo or an adjoining country and, in cases in which such conflict minerals did originate in any such country, submit to the Commission a report that includes, with respect to the period covered by the report—
(i) a description of the measures taken by the person to exercise due diligence on the source and chain of custody of such minerals, which measures shall include an independent private sector audit of such report submitted through the Commission that is conducted in accordance with standards established by the Comptroller General of the United States, in accordance with rules promulgated by the Commission, in consultation with the Secretary of State; and
(ii) a description of the products manufactured or contracted to be manufactured that are not DRC conflict free (“DRC conflict free” is defined to mean the products that do not contain minerals that directly or indirectly finance or benefit armed groups in the Democratic Republic of the Congo or an adjoining country), the entity that conducted the independent private sector audit in accordance with clause (i), the facilities used to process the conflict minerals, the country of origin of the conflict minerals, and the efforts to determine the mine or location of origin with the greatest possible specificity.
The person submitting a report under subparagraph (A) shall certify the audit described in clause (i) of such subparagraph that is included in such report. Such a certified audit shall constitute a critical component of due diligence in establishing the source and chain of custody of such minerals.
(C) Unreliable determination
If a report required to be submitted by a person under subparagraph (A) relies on a determination of an independent private sector audit, as described under subparagraph (A)(i), or other due diligence processes previously determined by the Commission to be unreliable, the report shall not satisfy the requirements of the regulations promulgated under subparagraph (A)(i).
(D) DRC conflict free
For purposes of this paragraph, a product may be labeled as “DRC conflict free” if the product does not contain conflict minerals that directly or indirectly finance or benefit armed groups in the Democratic Republic of the Congo or an adjoining country.
(E) Information available to the public
Each person described under paragraph (2) shall make available to the public on the Internet website of such person the information disclosed by such person under subparagraph (A).
(2) Person described
A person is described in this paragraph if—
(A) the person is required to file reports with the Commission pursuant to paragraph (1)(A); and
(B) conflict minerals are necessary to the functionality or production of a product manufactured by such person.
(3) Revisions and waivers
The Commission shall revise or temporarily waive the requirements described in paragraph (1) if the President transmits to the Commission a determination that—
(A) such revision or waiver is in the national security interest of the United States and the President includes the reasons therefor; and
(B) establishes a date, not later than 2 years after the initial publication of such exemption, on which such exemption shall expire.
(4) Termination of disclosure requirements
The requirements of paragraph (1) shall terminate on the date on which the President determines and certifies to the appropriate congressional committees, but in no case earlier than the date that is one day after the end of the 5-year period beginning on July 21, 2010, that no armed groups continue to be directly involved and benefitting from commercial activity involving conflict minerals.
For purposes of this subsection, the terms “adjoining country”, “appropriate congressional committees”, “armed group”, and “conflict mineral” have the meaning given those terms under section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
(q) Disclosure of payments by resource extraction issuers
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 3 standardized list of electronic tags that mark information included in the annual report of a resource extraction issuer.
(A) Information required
Not later than 270 days after July 21, 2010, 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.