State Sanctions Against Iranian Terrorism Act

To amend the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 to secure the authority of State and local governments to adopt and enforce measures restricting investment in business enterprises in Iran, and for other purposes. 1. Short title This Act may be cited as the State Sanctions Against Iranian Terrorism Act 2. Authority of State and local governments to restrict investment activities in Iran (a) Additional authority Section 202 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 ( 22 U.S.C. 8532 (1) Subsection (a) is amended— (A) by striking should support should not interfere with (B) by striking in the energy sector of Iran United States in the business sector in Iran, or prohibits or limits any person from engaging in investment activities in the business sector of Iran, until such time as all Federal laws that either expressly authorize or require the imposition of sanctions by the Federal Government on Iran are rescinded by an Act or Acts of Congress (2) Subsection (b) is amended— (A) by amending the subsection heading to read as follows: (b) Authority To restrict investment in Iran ; (B) by striking may adopt and enforce measures that meet may— (1) adopt and enforce measures— (A) that meet ; (C) by striking subsection (c). subsection (c); or (D) by adding at the end the following: (B) to prohibit or limit any person from engaging in investment activities in Iran described in subsection (c); and (2) enter into interstate compacts regarding measures described in paragraph (1). Enforcement of measures under this subsection may include the imposition of disclosure and other transparency requirements to carry out paragraph (1). . (3) Subsection (c) is amended— (A) in paragraph (1)— (i) by striking $20,000,000 or more in the energy sector $10,000,000 or more— (A) in the energy sector ; and (ii) by adding at the end the following: (B) in any other business enterprise in Iran, including an entity that is owned or controlled by the Government of Iran; or ; and (B) in paragraph (2)— (i) by striking $20,000,000 $10,000,000 (ii) by adding after energy sector of Iran or otherwise in a business enterprise in Iran, including an entity that is owned or controlled by the Government of Iran (4) Subsection (f) is amended to read as follows: (f) Nonpreemption; no conflict with U.S. Foreign and International Commerce Policy A measure of a State or local government authorized under subsection (b), (i), or (j)— (1) is authorized and not preempted by any Federal law or regulation, or any policy, agreement, or exercise of waiver authority of the executive branch; and (2) is consistent with United States Federal policy, including United States foreign policy. . (5) Subsection (g) is amended by adding at the end the following: (3) Own or control An entity is owned or controlled (A) holds more than 20 percent of the equity interest by vote or value in the entity; (B) has the right or ability to elect a majority of seats on the board of directors of the entity; or (C) otherwise controls the actions, policies, or personnel decisions of the entity. . (6) Subsection (h) is amended— (A) in paragraph (1), by striking or subsection (i) and subsections (i) and (j) (B) in paragraph (2), by striking subsection (i) subsections (i) and (j) (7) Subsection (i) is amended by adding at the end the following: (3) Applicability of prior provisions Paragraphs (1) and (2) apply with respect to this section as in effect on the day before the effective date of the State Sanctions Against Iranian Terrorism Act . (8) Section 202 is further amended— (A) by redesignating subsection (j) as subsection (k); and (B) by inserting after subsection (i) the following: (j) Applicability (1) In general 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)) adopted by the State or local government before the date of the enactment of the State Sanctions Against Iranian Terrorism Act (A) 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 in Iran (determined without regard to subsection (c)) or other business activities in Iran that are identified in the measure; or (B) prohibits or limits any person from engaging in investment activities in Iran described in subsection (c). (2) Application of notice requirements 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 2 years after the date of the enactment of the State Sanctions Against Iranian Terrorism Act . (b) Congressional resolution of disapproval of presidential certification relating to sunset of Act Section 401(a) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 ( 22 U.S.C. 855(a) (1) by striking The provisions of this Act (1) In general Subject to paragraph (2), the provisions of this Act ; (2) by striking (1) the Government of Iran (A) the Government of Iran (3) by striking (A) section 6(j)(1)(A) (i) section 6(j)(1)(A) (4) by striking (B) section 40(d) (ii) section 40(d) (5) by striking (C) section 620A(a) (iii) section 620A(a) (6) by striking (2) Iran has ceased (B) Iran has ceased (7) by adding at the end the following: (2) Congressional resolution of disapproval with respect to sunset of section 202 (A) In general Section 202 shall not terminate pursuant to a certification of the President submitted to Congress under subsection (a) if Congress, not later than 60 days after the date on which the President submits such certification, enacts a joint resolution disapproving such certification. (B) Expedited procedures A joint resolution described in subparagraph (A) and introduced not later than 60 days after the date on which the President submits a certification under subsection (a) shall be considered in the Senate and the House of Representatives in accordance with paragraphs (3) through (7) of section 8066(c) of the Department of Defense Appropriations Act (as contained in Public Law 98–473 . (c) Conforming amendments (1) The heading for title II of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 ( 22 U.S.C. 8531 II Restrictions by State and Local Governments on Investment Activities in Iran . (2) The heading for section 202 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 ( 22 U.S.C. 8532 202. Authority of State and local governments to restrict investment activities in Iran . (3) The table of contents of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 ( 22 U.S.C. 8501 (A) by amending the item relating to title II to read as follows: Title II—Restrictions by State and Local Governments on Investment in Iran ; and (B) by amending the item relating to section 202 to read as follows: Sec. 202. Authority of State and local governments to restrict investment activities in Iran. . 3. Effective date The amendments made by this Act shall apply to measures adopted by a State or local government on or after the date of the enactment of this Act, except as provided in section 202(j) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010, as amended by this Act.

Summary: State Sanctions Against Iranian Terrorism Act This bill amends the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 to specify that a state may, in addition to limiting investment in Iran's energy sector, prohibit or limit any person from engaging in specified investment activities in Iran. A state may also enter into interstate compacts to prohibit or limit such financial activities. Enforcement of such measures may include the imposition of disclosure and transparency requirements. The description of "investment activities" is revised to: (1) reduce the threshold for financial involvement from $20 million to $10 million; and (2) include, in addition to the energy sector, involvement in a business enterprise in Iran, including an entity owned or controlled by the Iranian government. The bill declares that a state or local government measure authorized pursuant to the bill is: (1) authorized and not preempted by any federal law or regulation, or any policy, agreement, or exercise of waiver authority of the executive branch; and (2) is consistent with U.S. federal policy, including U.S. foreign policy. A state or local government may enforce a measure adopted before the enactment of this bill that: (1) provides for the divestment of state or local assets from, or prohibits the investment of those assets in, any person that engages in investment activities in Iran or other business activities in Iran identified in the measure; or (2) prohibits or limits any person from engaging in investment activities in Iran. State and local government authority to divest from certain companies that invest in Iran shall not terminate pursuant to a presidential certification if Congress, not later than 60 days after the date on which the President submits such certification, enacts a joint resolution disapproving such certification.