Amd §2, Chap 1 of 2012; amd §165-a, St Fin L; amd §1, Chap 481 of 2013; rpld §1415 sub§ 5, Ins L
Enacts the New York State Iran divestment act; provides for sanctions against the financial and energy sectors of Iran unless a duly executed treaty is approved by two-thirds of the United States Senate.
STATE OF NEW YORK
________________________________________________________________________
5340
2019-2020 Regular Sessions
IN ASSEMBLY
February 11, 2019
___________
Introduced by M. of A. ROZIC, ABBATE, BARCLAY, BARNWELL, BRABENEC,
BRAUNSTEIN, CROUCH, CUSICK, CYMBROWITZ, DAVILA, DiPIETRO, LENTOL,
FITZPATRICK, GARBARINO, LAWRENCE, MALLIOTAKIS, McDONOUGH, MOSLEY,
ORTIZ, PALUMBO, RA, RAIA, SIMOTAS, STEC -- Multi-Sponsored by -- M. of
A. SIMON, THIELE -- read once and referred to the Committee on Govern-
mental Operations
AN ACT to amend the Iran divestment act of 2012, the state finance law,
and chapter 481 of the laws of 2013 amending the insurance law relat-
ing to investments in foreign states sponsoring terrorism, in relation
to the divestment of Iran; and to repeal certain provisions of the
insurance law relating thereto
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. This act shall be known and may be cited as the New York
2 state Iran divestment act.
3 § 2. Section 2 of chapter 1 of the laws of 2012 amending the state
4 finance law and other laws enacting the Iran divestment act of 2012 is
5 amended to read as follows:
6 § 2. The legislature hereby finds and declares all of the following:
7 [(a) Congress and the President have determined that the illicit
8 nuclear activities of the Government of Iran, combined with its develop-
9 ment of unconventional weapons and ballistic missiles, and its support
10 of international terrorism, represent a serious threat to the security
11 of the United States, Israel, and other United States allies in Europe,
12 the Middle East, and around the world.
13 (b) The International Atomic Energy Agency has repeatedly called
14 attention to Iran's unlawful nuclear activities, and, as a result, the
15 United Nations Security Council has adopted a range of sanctions
16 designed to encourage the government of Iran to cease those activities
17 and comply with its obligations under the Treaty on the Non-Prolifera-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01108-01-9
A. 5340 2
1 tion of Nuclear Weapons (commonly known as the "Nuclear Non-Prolifera-
2 tion Treaty").
3 (c) On July 1, 2010, President Barack Obama signed into law H.R.
4 2194, the "Comprehensive Iran Sanctions, Accountability, and Divestment
5 Act of 2010" (Public Law 111-195), which expressly authorizes states and
6 local governments to prevent investment in, including prohibiting entry
7 into or renewing contracts with, companies operating in Iran's energy
8 sector with investments that have the result of directly or indirectly
9 supporting the efforts of the government of Iran to achieve nuclear
10 weapons capability.
11 (d) The serious and urgent nature of the threat from Iran demands that
12 states, local governments, and private institutions work together with
13 the federal government and American allies to do everything possible
14 diplomatically, politically, and economically to prevent Iran from
15 acquiring a nuclear weapons capability.
16 (e) Respect for human rights in Iran has steadily deteriorated as
17 demonstrated by transparently fraudulent elections and the brutal
18 repression and murder, arbitrary arrests, and show trials of peaceful
19 dissidents.
20 (f) The concerns of the state of New York regarding Iran are strictly
21 the result of the actions of the government of Iran and should not be
22 construed as enmity towards the Iranian people.
23 (g) In order to effectively address the need for the governments of
24 this state to respond to the policies of Iran in a uniform fashion,
25 prohibiting contracts with persons engaged in investment activities in
26 the energy sector of Iran must be accomplished on a statewide basis.
27 (h) It is the intent of the legislature to fully implement the author-
28 ity granted under Section 202 of the Comprehensive Iran Sanctions,
29 Accountability, and Divestment Act of 2010 (Public Law 111-195).]
30 (a) That the illicit nuclear activities of the government of Iran,
31 combined with its development of unconventional weapons and ballistic
32 missiles, and its support of international terrorism, represent a seri-
33 ous threat to the security of the state of New York, its citizens and
34 their property;
35 (b) That Iran and other terrorist states and organizations have
36 repeatedly identified New York state and its citizens as a primary
37 target for terrorist activities and attacks, and under the state's
38 constitutional powers to provide for the public health, safety, security
39 and public protection of its citizens and their property, and under the
40 state's constitutional powers to provide for the protection and regu-
41 lation of its financial, banking and insurance sectors, and under the
42 state's constitutional powers to provide for the protection and regu-
43 lation of its environment and natural resources, New York state has the
44 legal authority to prevent investment in, including prohibiting entry
45 into or renewing contracts with, companies operating in Iran's energy
46 and financial sectors with investments that have the result of directly
47 or indirectly supporting the efforts of the government of Iran to
48 achieve nuclear weapons capability or to otherwise promote or advance
49 terrorist activities that will target or affect New York state, its
50 citizens or their property;
51 (c) That the serious and urgent nature of the threat from Iran demands
52 that states, local governments, and private institutions work together
53 with the federal government and American allies to do everything possi-
54 ble diplomatically, politically, and economically to prevent Iran from
55 acquiring a nuclear weapons capability or to otherwise promote or
A. 5340 3
1 advance terrorist activities that will target or affect New York state,
2 its citizens or their property;
3 (d) That Iran has repeatedly demonstrated an intent to pursue and use
4 nuclear weapons, weapons of mass destruction, and to promote or advance
5 terrorist activities across the world;
6 (e) That respect for human rights in Iran has steadily deteriorated as
7 demonstrated by transparently fraudulent elections and the brutal
8 repression and murder, arbitrary arrests, and show trials of peaceful
9 dissidents;
10 (f) That the concerns of the state of New York regarding Iran are
11 strictly the result of the actions of the government of Iran and should
12 not be construed as enmity towards the Iranian people;
13 (g) That in order to effectively address the need for the governments
14 of this state to respond to the policies of Iran in a uniform fashion,
15 prohibiting contracts with persons engaged in investment activities in
16 the energy and financial sectors of Iran must be accomplished on a
17 statewide basis;
18 (h) That terrorists have continued to use Iran as their safe harbor,
19 that the Iranian government has failed to address the spread of terror-
20 ist activities, and that human rights violations are in Iran are, and
21 continue to be rampant; and
22 (i) That the serious and urgent nature of the continued threat from
23 Iran, for the state of New York, its citizens and their property,
24 demands that our state, local governments and private institutions work
25 together to continue to do all within its legal power to ensure that
26 Iran does not have the resources to acquire nuclear weapons capability
27 and that it cease its promotion and advancement of terrorist activities.
28 § 3. Paragraph (b) of subdivision 1 of section 165-a of the state
29 finance law, as added by chapter 1 of the laws of 2012, is amended to
30 read as follows:
31 (b) "Financial institution" means [the term as used in Section 14 of
32 the Iran Sanctions Act of 1996 (Public Law 104-172; 50 U.S.C. 1701
33 note).]:
34 (1) a banking organization as defined in subdivision eleven of section
35 two of the banking law;
36 (2) a securities firm, including a broker or dealer;
37 (3) any insurance company, including any company, agent, broker, or
38 underwriter, licensed or regulated by the department of financial
39 services pursuant to the insurance law; and/or
40 (4) any other company that provides a financial product or service as
41 defined in subdivision two of section one hundred four of the financial
42 services law.
43 § 4. Subparagraph 2 of paragraph (e) of subdivision 1 of section 165-a
44 of the state finance law, as added by chapter 1 of the laws of 2012, is
45 amended to read as follows:
46 (2) Any governmental entity or instrumentality of a government,
47 including [a multilateral development institution, as defined in Section
48 1701(c)(3) of the International Financial Institutions Act (22 U.S.C.
49 262r(c)(3))] the International Bank for Reconstruction and Development,
50 the European Bank for Reconstruction and Development, the International
51 Development Association, the International Finance Corporation, the
52 Multilateral Investment Guarantee Agency, the African Development Bank,
53 the African Development Fund, the Asian Development Bank, the Inter-Am-
54 erican Development Bank, the Bank for Economic Cooperation and Develop-
55 ment in the Middle East and North Africa, and the Inter-American Invest-
56 ment Corporation.
A. 5340 4
1 § 5. Subdivision 6 of section 165-a of the state finance law, as added
2 by chapter 1 of the laws of 2012, is amended to read as follows:
3 6. The commissioner shall report to the governor and the legislature
4 annually on or before October first, on the status of the [federal
5 "Comprehensive Iran Sanctions, Accountability, and Divestment Act of
6 2010" (Public Law 111-195), "the Iran divestment act of 2012",]
7 provisions of the New York state Iran divestment act and any rules or
8 regulations adopted thereunder.
9 § 6. Section 1 of chapter 481 of the laws of 2013 amending the insur-
10 ance law relating to investments in foreign states sponsoring terrorism,
11 is amended to read as follows:
12 Section 1. The legislature finds and declares all of the following:
13 [(1) The Federal Securities and Exchange Commission has determined
14 that investments in foreign states sponsoring terrorism, such as Iran,
15 that are subject to sanctions by the United States, may materially harm
16 the share value of foreign companies. Shares in these foreign companies
17 may be held in the portfolio of insurance companies issuing policies to
18 New York consumers.
19 (2) Publicly traded companies in the United States are substantially
20 restricted in doing business in or with foreign states, such as Iran,
21 that the United States Department of State has identified as sponsoring
22 terrorism.
23 (3) Identifying persons with investments in foreign states, such as
24 Iran, that sponsor terrorism and ensuring that those investments are
25 financially sound is an important public policy priority.
26 (4) It is the government of Iran, and not the people of Iran, that is
27 responsible for Iran's support of terrorism and that commits egregious
28 violations of human rights under which its own citizens are required to
29 live.]
30 (a) That the illicit nuclear activities of the government of Iran,
31 combined with its development of unconventional weapons and ballistic
32 missiles, and its support of international terrorism, represent a seri-
33 ous threat to the security of the state of New York, its citizens and
34 their property;
35 (b) That Iran and other terrorist states and organizations have
36 repeatedly identified New York state and its citizens as a primary
37 target for terrorist activities and attacks, and under the state's
38 constitutional powers to provide for the public health, safety, security
39 and public protection of its citizens and their property, and under the
40 state's constitutional powers to provide for the protection and regu-
41 lation of its financial, banking and insurance sectors, and under the
42 state's constitutional powers to provide for the protection and regu-
43 lation of its environment and natural resources, New York state has the
44 legal authority to prevent investment in, including prohibiting entry
45 into or renewing contracts with, companies operating in Iran's energy
46 and financial sectors with investments that have the result of directly
47 or indirectly supporting the efforts of the government of Iran to
48 achieve nuclear weapons capability or to otherwise promote or advance
49 terrorist activities that will target or affect New York state, its
50 citizens or their property;
51 (c) That the serious and urgent nature of the threat from Iran demands
52 that states, local governments, and private institutions work together
53 with the federal government and American allies to do everything possi-
54 ble diplomatically, politically, and economically to prevent Iran from
55 acquiring a nuclear weapons capability or to otherwise promote or
A. 5340 5
1 advance terrorist activities that will target or affect New York state,
2 its citizens or their property;
3 (d) That Iran has repeatedly demonstrated an intent to pursue and use
4 nuclear weapons, weapons of mass destruction, and to promote or advance
5 terrorist activities across the world;
6 (e) That respect for human rights in Iran has steadily deteriorated as
7 demonstrated by transparently fraudulent elections and the brutal
8 repression and murder, arbitrary arrests, and show trials of peaceful
9 dissidents;
10 (f) That the concerns of the state of New York regarding Iran are
11 strictly the result of the actions of the government of Iran and should
12 not be construed as enmity towards the Iranian people;
13 (g) That in order to effectively address the need for the governments
14 of this state to respond to the policies of Iran in a uniform fashion,
15 prohibiting contracts with persons engaged in investment activities in
16 the energy and financial sectors of Iran must be accomplished on a
17 statewide basis;
18 (h) That terrorists have continued to use Iran as their safe harbor,
19 that the Iranian government has failed to address the spread of terror-
20 ist activities, and that human rights violations are in Iran are, and
21 continue to be rampant; and
22 (i) That the serious and urgent nature of the continued threat from
23 Iran, for the state of New York, its citizens and their property,
24 demands that our state, local governments and private institutions work
25 together to continue to do all within its legal power to ensure that
26 Iran does not have the resources to acquire nuclear weapons capability
27 and that it cease its promotion and advancement of terrorist activities.
28 § 7. Subsection 5 of section 1415 of the insurance law is REPEALED.
29 § 8. This act shall take effect immediately, and shall not be deemed
30 repealed as the result of any executive action taken by the president of
31 the United States, or the department of state, unless such action is a
32 duly executed treaty approved by two-thirds of the United States Senate,
33 and provided further that the addition, amendment and/or repeal of any
34 rule or regulation necessary for the implementation of this act is
35 authorized to be made on and after such effective date.
