Sec. 303. Authority of State and local governments to divest from companies that invest in North Korea
854 words·~4 min read·
/bill/113/hr/1771/ih/section-303A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
It is the sense of Congress that the United States should support the decision of any State or local government that for moral, prudential, or reputational reasons divests from, or prohibits the investment of assets of such State or local government in, a person that engages in investment activities in North Korea, if North Korea is subject to economic sanctions imposed by the United States. Notwithstanding any other provision of law, a State or local government may adopt and enforce measures that meet the requirements of subsection
(d)to divest the assets of such State or local government from, or prohibit investment of the assets of such State or local government in, any person that such State or local government determines, using credible information available to the public, engages in investment activities in North Korea described in subsection (c). A person engages in investment activities in North Korea described in this subsection if the person— has an investment of $10,000 or more in North Korea; or is a financial institution that extends $10,000 or more in credit to another person, for 45 days or more, if such person will use such credit for investment in North Korea. Any measure taken by a State or local government under subsection
(b)shall meet the following requirements: The State or local government shall provide written notice to each person with respect to which a measure under this section is to be applied. The measure applied under this section shall apply to a person not earlier than the date that is 90 days after the date on which written notice is provided to such person under paragraph (1). The State or local government at issue shall provide an opportunity to comment in writing to each person with respect to which a measure is to be applied under this section. If such person demonstrates to such State or local government that such person does not engage in investment activities in North Korea described in subsection (c), such measure shall not apply to such person. It is the sense of Congress that a State or local government should not adopt a measure under subsection
(b)with respect to a person unless such State or local government has made every effort to avoid erroneously targeting such person and has verified that such person engages in investment activities in North Korea described in subsection (c). Not later than 30 days after a State of local government applies a measure under this section, such State or local government shall notify the Attorney General of such measure. A measure applied by a State or local government authorized under subsection
(b)or
(i)is not preempted by any Federal law or regulation. In this section: Except as provided in subparagraph (B), the term asset 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. The term asset does not include employee benefit plans covered by title I of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1001 et seq.). The term investment includes— a commitment or contribution of funds or property; a loan or other extension of credit; and the entry into or renewal of a contract for goods or services. Except as provided in paragraph
(2)or subsection (i), this section applies to measures applied by a State or local government before, on, or after the date of the enactment of this Act. Except as provided in subsection (i), subsections
(d)and
(e)apply to measures applied by a State or local government on or after the date of the enactment of this Act. Notwithstanding any other provision of this section or any other provision of law, a State or local government may enforce a measure (without regard to the requirements of subsection (d), except as provided in paragraph (2)) applied by such State or local government before the date of the enactment of this Act that provides for the divestment of assets of such State or local government from, or prohibits the investment of the assets of such State or local government in, any person that such State or local government determines, using credible information available to the public, engages in investment activities in North Korea (determined without regard to subsection (c)) or other business activities in North Korea that are identified in such measure. A measure described in paragraph
(1)shall be subject to the requirements of paragraphs
(1)and
(2)and the first sentence of paragraph
(3)of subsection
(d)on and after the date that is two years after the date of the enactment of this Act. Nothing in this Act or any other provision of law authorizing sanctions with respect to North Korea shall be construed to abridge the authority of a State or local government to issue and enforce rules governing the safety, soundness, and solvency of a financial institution subject to its jurisdiction or the business of insurance pursuant to the Act of March 9, 1945 ( 15 U.S.C. 1011 et seq. ) (commonly known as the McCarran-Ferguson Act ).
Connectionstraces to 2
Traces to 2 documents
Citation graph
cites case law
Sec. 303
Authority of State and local governments to divest from companies that invest in North Korea
Cites 2Cited by 0 across 0 sources