41, United States Code, shall be revised to provide for the 
implementation of the requirements of this section. 
SEC. 502. AUTHORITY OF STATE AND LOCAL GOVERN-
MENTS TO RESTRICT CONTRACTS OR LI-
CENSES FOR CERTAIN SANCTIONABLE PER-
SONS. 
Notwithstanding any other provision of law, a State 
or local government may adopt and enforce measures to 
prohibit the State or local government, as the case may 
be, from entering into or renewing any contract with, or 
granting to or renewing any license for persons that con-
duct business operations in Iran described in section 504. 
SEC. 503. UNITED STATES PENSION PLANS. 
(a) DIVESTITURE FROM IRAN.—The managers of 
United States Government pension plans or thrift savings 
plans, shall take, to the extent consistent with the legal 
and fiduciary duties otherwise imposed on them, imme-
diate steps to divest all investments in any entity with re-
spect to which sanctions are applied for activities de-
scribed in section 5(a) of the Iran Sanctions Act of 1996 
(Public Law 104–172; 50 U.S.C. 1701 note), as amended 
by this Act, section 202(a) of this Act, or section 106(a) 
of the Comprehensive Iran Sanctions, Accountability, and 
Divestment Act of 2010 (Public Law 111–195; 22 U.S.C. 
8515). 
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(b) PROHIBITION ON FUTURE INVESTMENT.—The 
managers of United States Government pension plans or 
thrift savings plans shall ensure that there is no future 
investment in any entity described in subsection (a) for 
the duration of the period of time during which the entity 
is sanctioned under the applicable provision of law de-
scribed in subsection (a). 
SEC. 504. DEFINITIONS. 
In this title: 
(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means— 
(A) the Committee on Banking, Housing, 
and Urban Affairs, the Committee on Foreign 
Relations, and the Select Committee on Intel-
ligence of the Senate; and 
(B) the Committee on Financial Services, 
the Committee on Foreign Affairs, and the Per-
manent Select Committee on Intelligence of the 
House of Representatives. 
(2) AFFILIATE.—The term ‘‘affiliate’’ means 
any individual or entity that directly or indirectly 
controls, is controlled by, or is under common con-
trol with, the company, including without limitation 
direct and indirect subsidiaries of the company. 
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(3) BUSINESS OPERATIONS.—The term ‘‘busi-
ness operations’’ means— 
(A) carrying out any of the activities de-
scribed in section 5 (a) and (b) of the Iran 
Sanctions Act of 1996 (Public Law 104–172; 
50 U.S.C. 1701 note), as amended by this Act, 
that are sanctionable under such section; 
(B) providing sensitive technology (as de-
fined in section 106(c) of the Comprehensive 
Iran Sanctions, Accountability, and Divestment 
Act of 2010 (Public Law 111–195; 22 U.S.C. 
8515(c))) to the Government of Iran; and 
(C) carrying out any of the activities de-
scribed in section 302(a) of this Act. 
(4) COMPANY.—The term ‘‘company’’ means— 
(A) a sole proprietorship, organization, as-
sociation, corporation, partnership, limited li-
ability company, venture, or other entity, its 
subsidiary or affiliate; and 
(B) includes a company owned or con-
trolled, either directly or indirectly, by the gov-
ernment of a foreign country, that is estab-
lished or organized under the laws of, or has its 
principal place of business in, such foreign 
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country and includes United States subsidiaries 
of the same. 
(5) ENTITY.—The term ‘‘entity’’ means a sole 
proprietorship, a partnership, limited liability cor-
poration, association, trust, joint venture, corpora-
tion, or other organization. 
(6) EXECUTIVE AGENCY.—The term ‘‘executive 
agency’’ has the meaning given the term in section 
133 of title 41, United States Code. 
(7) FEDERAL
FUNDS.—The term ‘‘Federal 
funds’’ means a sum of money or other resources de-
rived from United States taxpayers, which the 
United States Government may provide to compa-
nies through government grants or loans, or through 
the terms of a contract with the Federal Govern-
ment, or through the Emergency Economic Sta-
bilization Act of 2008 ‘‘Troubled Asset Relief Pro-
gram’’ or other similar and related transaction vehi-
cles, including a grant, loan, or loan guarantee, the 
provision of insurance or reinsurance, or the provi-
sion of technical assistance. 
(8) GOVERNMENT OF IRAN.—The term ‘‘Gov-
ernment of Iran’’ includes the Government of Iran, 
any political subdivision, agency, or instrumentality 
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thereof, and any person owned or controlled by, or 
acting for or on behalf of, the Government of Iran. 
(9) PETROLEUM RESOURCES.— 
(A) IN GENERAL.—The term ‘‘petroleum 
resources’’ includes petroleum, petroleum by- 
products, oil or liquefied natural gas, oil or liq-
uefied natural gas tankers, and products used 
to construct or maintain pipelines used to 
transport oil or compressed or liquefied natural 
gas. 
(B) 
PETROLEUM
BY-PRODUCTS.—The 
term ‘‘petroleum by-products’’ means gasoline, 
kerosene, distillates, propane or butane gas, die-
sel fuel, residual fuel oil, and other goods classi-
fied in headings 2709 and 2710 of the Har-
monized Tariff Schedule of the United States. 
(10) 
SENSITIVE
TECHNOLOGY.—The 
term 
‘‘sensitive technology’’ has the meaning given the 
term in section 106(c) of the Comprehensive Iran 
Sanctions, Accountability, and Divestment Act of 
2010 (Public Law 111–195; 22 U.S.C. 8515(c)). 
SEC. 505. SUNSET. 
This title shall terminate 30 days after the date on 
which— 
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