Sec. 111. Authority of States and local governments to divest from persons that engage in investment or business activities with Iran's Revolutionary Guard Corps
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Subtitle B of title III of the Iran Threat Reduction and Syria Human Rights Act of 2012 ( Public Law 112–158 ; 126 Stat. 1247) is amended by adding at the end the following: 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 the State or local government in, a person that engages in investment or business activities with Iran's Revolutionary Guard Corps or a person described in subsection (c), as long as Iran's Revolutionary Guard Corps 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
(e)to divest the assets of the State or local government from, or prohibit investment of the assets of the State or local government in, any person that the State or local government determines, using credible information available to the public, engages in investment or business activities described in subsection
(d)with Iran's Revolutionary Guard Corps or a person described in subsection (c). A person described in this subsection is— an entity, regardless of whether the entity is included on the list of specially designated nationals and blocked persons maintained by the Office of Foreign Assets Control of the Department of the Treasury, that is owned, directly or indirectly, by a 25 percent or greater interest— by Iran's Revolutionary Guard Corps or an agent or affiliate of Iran's Revolutionary Guard Corps; or collectively by a group of individuals that are members of Iran's Revolutionary Guard Corps or an agent or affiliate of Iran's Revolutionary Guard Corps, even if none of such individuals hold a 25 percent or greater interest in the entity; a person that controls, manages, or directs an entity described in paragraph (1); an individual who is on the board of directors of an entity described in paragraph (1); or a person on the IRGC Watch List required by section 104 of the Nonnuclear Iran Sanctions Act of 2016 . A person engages in investment or business activities with Iran's Revolutionary Guard Corps or a person described in subsection
(c)if the person— has a financial investment in Iran's Revolutionary Guard Corps or such a person; owns, in whole or in part, such a person; or is a financial institution that extends credit or financing to another person, for 45 days or more, if that person will use the credit or financing for investment in a person described in subsection (c). 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 to which a measure is to be applied. The measure shall apply to a person not earlier than the date that is 90 days after the date on which written notice is provided to the person under paragraph (1). The State or local government shall provide an opportunity to comment in writing to each person to which a measure is to be applied. If the person demonstrates to the State or local government that the person does not engage in investment or business activities described in subsection
(d)with Iran's Revolutionary Guard Corps or a person described in subsection (c), the measure shall not apply to the 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 the State or local government has made every effort to avoid erroneously targeting the person and has verified that the person engages in investment or business activities described in subsection
(d)with Iran's Revolutionary Guard Corps or a person described in subsection (c). Not later than 30 days after adopting a measure pursuant to subsection (b), a State or local government shall submit written notice to the Attorney General describing the measure. A measure of a State or local government authorized under subsection
(b)or
(i)is not preempted by any Federal law or regulation. Except as provided in paragraph
(2)or subsection (i), this section applies to measures adopted by a State or local government before, on, or after the date of the enactment of the Nonnuclear Iran Sanctions Act of 2016 . Except as provided in subsection (i), subsections
(e)and
(f)apply to measures adopted by a State or local government on or after the date of the enactment of the Nonnuclear Iran Sanctions Act of 2016 . 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 (e), except as provided in paragraph (2)) adopted by the State or local government before the date of the enactment of the Nonnuclear Iran Sanctions Act of 2016 that provides for the divestment of assets of the State or local government from, or prohibits the investment of the assets of the State or local government in, any person that the State or local government determines, using credible information available to the public, engages in investment or business activities with Iran's Revolutionary Guard Corps or a person described in subsection
(c)(determined without regard to subsection (d)) or other business or investment activities that are identified in the 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
(e)on and after the date that is 2 years after the date of the enactment of the Nonnuclear Iran Sanctions Act of 2016 . Nothing in this section or any other provision of law authorizing sanctions with respect to Iran shall be construed to abridge the authority of a State 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 ). In this section: Except as provided in subparagraph (B), the term assets 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 assets 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 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. . The table of contents for the Iran Threat Reduction and Syria Human Rights Act of 2012 is amended by adding after the item relating to section 312 the following: Sec. 313. Authority of States and local governments to divest from persons that engage in investment or business activities with Iran's Revolutionary Guard Corps. .
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- Pub. L. 112-158
- 126 Stat. 1247
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Sec. 111
Authority of States and local governments to divest from persons that engage in investment or business activities with Iran's Revolutionary Guard Corps
Pub. L.Pub. L. 112-158
Stat.126 Stat. 1247
Cites 4Cited by 0 across 0 sources