I 
111TH CONGRESS 
1ST SESSION H. R. 1327 
To authorize State and local governments to direct divestiture from, and 
prevent investment in, companies with investments of $20,000,000 or 
more in Iran’s energy sector, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 5, 2009 
Mr. FRANK of Massachusetts (for himself, Mr. BERMAN, Mr. SHERMAN, and 
Mr. MEEKS of New York) introduced the following bill; which was re-
ferred to the Committee on Financial Services 
A BILL 
To authorize State and local governments to direct divesti-
ture from, and prevent investment in, companies with 
investments of $20,000,000 or more in Iran’s energy 
sector, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Iran Sanctions Ena-
bling Act of 2009’’. 
SEC. 2. FINDINGS. 
The Congress finds as follows: 
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(1) There is an increasing interest by States, 
local governments, educational institutions, and pri-
vate institutions to seek to disassociate themselves 
from companies that directly or indirectly support 
the Government of Iran’s efforts to achieve a nu-
clear weapons capability. 
(2) Policy makers and fund managers may find 
moral, prudential, or reputational reasons to divest 
from companies that accept the business risk of op-
erating in countries that are subject to international 
economic sanctions or that have business relation-
ships with countries, governments, or entities with 
which any United States company would be prohib-
ited from dealing because of economic sanctions im-
posed by the United States. 
SEC. 3. AUTHORITY OF STATE AND LOCAL GOVERNMENTS 
TO DIVEST FROM CERTAIN COMPANIES IN-
VESTED IN IRAN’S ENERGY SECTOR. 
(a) STATEMENT OF POLICY.—It is the policy of the 
United States to support the decision of State govern-
ments, local governments, and educational institutions to 
divest from, and to prohibit the investment of assets they 
control in, persons that have investments of more than 
$20,000,000 in Iran’s energy sector. 
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(b) AUTHORITY TO DIVEST.—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 infor-
mation available to the public, engages in investment ac-
tivities in Iran described in subsection (c). 
(c) INVESTMENT ACTIVITIES IN IRAN DESCRIBED.— 
A person engages in investment activities in Iran described 
in this subsection if the person— 
(1) has an investment of $20,000,000 or 
more— 
(A) in the energy sector of Iran; or 
(B) in a person that provides oil or 
liquified natural gas tankers, or products used 
to construct or maintain pipelines used to 
transport oil or liquified natural gas, for the en-
ergy sector in Iran; or 
(2) is a financial institution that extends 
$20,000,000 or more in credit to another person, for 
45 days or more, if that person will use the credit 
to invest in the energy sector in Iran. 
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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 activities in Iran described in subsection 
(c). 
(e) NOTICE
TO DEPARTMENT
OF JUSTICE.—Not 
later than 30 days after adopting a measure pursuant to 
subsection (b), a State or local government shall submit 
to the Attorney General of the United States a written 
notice which describes the measure. 
(f) NONPREEMPTION.—A measure of a State or local 
government authorized under subsection (b) is not pre-
empted by any Federal law or regulation. 
(g) DEFINITIONS.—In this section: 
(1) INVESTMENT.—The ‘‘investment’’ of assets, 
with respect to a State or local government, in-
cludes— 
(A) a commitment or contribution of as-
sets; 
(B) a loan or other extension of credit; or 
(C) the entry into or renewal of a contract 
for goods or services. 
(2) ASSETS.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the term ‘‘assets’’ refers to 
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public monies and includes any pension, retire-
ment, annuity, or endowment fund, or similar 
instrument, that is controlled directly or indi-
rectly by a State or local government. 
(B) EXCEPTION.—The term ‘‘assets’’ does 
not include employee benefit plans covered by 
title I of the Employee Retirement Income Se-
curity Act of 1974 (29 U.S.C. 1001 et seq.). 
(h) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), this section shall apply to measures 
adopted by a State or local government before, on, 
or after the date of the enactment of this Act. 
(2) NOTICE REQUIREMENTS.—Subsections (d) 
and (e) apply to measures adopted by a State or 
local government on or after the date of the enact-
ment of this Act. 
SEC. 4. SAFE HARBOR FOR CHANGES OF INVESTMENT 
POLICIES BY ASSET MANAGERS. 
Section 13(c)(1) of the Investment Company Act of 
1940 (15 U.S.C. 80a–13(c)(1)) is amended by inserting 
before the period the following: ‘‘or engage in investment 
activities in Iran described in section 3(c) of the Iran 
Sanctions Enabling Act of 2009’’. 
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SEC. 5. SENSE OF CONGRESS REGARDING CERTAIN ERISA 
PLAN INVESTMENTS. 
It is the sense of Congress that a fiduciary of an em-
ployee benefit plan, as defined in section 3(3) of the Em-
ployee Retirement Income Security Act of 1974 (29 
U.S.C. 1002(3)), may divest plan assets from, or avoid 
investing plan assets in, any person the fiduciary deter-
mines engages in investment activities in Iran described 
in section 3(c) of this Act, without breaching the respon-
sibilities, obligations, or duties imposed upon the fiduciary 
by section 404 of the Employee Retirement Income Secu-
rity Act of 1974 (29 U.S.C. 1104), if— 
(1) the fiduciary makes such determination 
using credible information that is available to the 
public; and 
(2) such divestment or avoidance of investment 
is conducted in accordance with section 2509.94–1 
of title 29, Code of Federal Regulations (as in effect 
on the day before the date of the enactment of this 
Act). 
SEC. 6. DEFINITIONS. 
In this title: 
(1) ENERGY SECTOR.—The term ‘‘energy sec-
tor’’ refers to activities to develop petroleum or nat-
ural gas resources or nuclear power. 
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(2) FINANCIAL
INSTITUTION.—The term ‘‘fi-
nancial institution’’ has the meaning given that term 
in section 14(5) of the Iran Sanctions Act of 1996 
(Public Law 104–172; 50 U.S.C. 1701 note). 
(3) IRAN.—The term ‘‘Iran’’ includes any agen-
cy or instrumentality of Iran. 
(4) PERSON.—The term ‘‘person’’ means— 
(A) a natural person, corporation, com-
pany, business association, partnership, society, 
trust, or any other nongovernmental entity, or-
ganization, or group; 
(B) any governmental entity or instrumen-
tality of a government, including a multilateral 
development institution (as defined in section 
1701(c)(3) of the International Financial Insti-
tutions Act (22 U.S.C. 262r(c)(3))); and 
(C) any successor, subunit, parent com-
pany, or subsidiary of any entity described in 
subparagraph (A) or (B). 
(5) STATE.—The term ‘‘State’’ means each of 
the several States, the District of Columbia, the 
Commonwealth of Puerto Rico, the United States 
Virgin Islands, Guam, American Samoa, and the 
Commonwealth of the Northern Mariana Islands. 
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(6) STATE OR LOCAL GOVERNMENT.—The term 
‘‘State or local government’’ includes— 
(A) any State and any agency or instru-
mentality thereof; 
(B) any local government within a State, 
and any agency or instrumentality thereof; 
(C) any other governmental instrumen-
tality; and 
(D) any public institution of higher edu-
cation within the meaning of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1001 et seq.). 
SEC. 7. SUNSET. 
This Act shall terminate 30 days after the date on 
which the President has certified to the Congress that— 
(1) the Government of Iran has ceased pro-
viding support for acts of international terrorism 
and no longer satisfies the requirements for designa-
tion as a state-sponsor of terrorism for purposes of 
section 6(j) of the Export Administration Act of 
1979, section 620A of the Foreign Assistance Act of 
1961, section 40 of the Arms Export Control Act, 
or any other provision of law; or 
(2) Iran has ceased the pursuit, acquisition, 
and development of nuclear, biological, and chemical 
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weapons and ballistic missiles and ballistic missile 
launch technology. 
Æ 
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