Sec. 6951. Authority of State and local governments to divest from companies that invest in North Korea
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/bill/116/s/1790/es/section-6951·A 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 made for moral, prudential, or reputational reasons, to divest from, or prohibit the investment of assets of the State or local government in, a person that engages in investment activities described in subsection
(c)if North Korea is subject to economic sanctions imposed by the United States or the United Nations Security Council. 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 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 activities described in subsection (c). Investment activities described in this subsection are activities of a value of more than $10,000 relating to an investment in North Korea or in goods or services originating in North Korea that are not conducted pursuant to a license issued by the Department of the Treasury. 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 under paragraph
(1)is provided to the person. The State or local government shall provide to each person with respect to which a measure is to be applied under this section an opportunity to demonstrate to the State or local government that the person does not engage in investment activities described in subsection (c). If a person with respect to which a measure is to be applied under this section demonstrates to the State or local government under subparagraph
(A)that the person does not engage in investment activities described in subsection (c), the measure shall not apply to that 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 verified that the person engages in investment activities described in subsection (c). Not later than 30 days before a State or local government applies a measure under this section, the State or local government shall notify the Attorney General of that measure. 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 the State or local government before the date of the enactment of this Act 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 activities described in subsection
(c)that are identified in that measure. A measure described in paragraph
(1)shall be subject to the requirements of paragraphs (1), (2), and (3)(A) of subsection
(d)on and after the date that is 2 years after the date of the enactment of this Act. A measure applied by a State or local government that is consistent with subsection
(b)or
(f)is not preempted by any Federal law. In this section: Except as provided in subparagraph (B), the term asset means public monies, and includes any pension, retirement, annuity, 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)and subsection (f), 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 (f), 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.
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Sec. 6951
Authority of State and local governments to divest from companies that invest in North Korea
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