State Sanctions Against Iranian Terrorism Act

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``State Sanctions Against Iranian 
Terrorism Act''.

SEC. 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) 
is amended as follows:
            (1) Subsection (a) is amended--
                    (A) by striking ``should support'' and inserting 
                ``should not interfere with''; and
                    (B) by striking ``in the energy sector of Iran'' 
                and all that follows through ``United States'' and 
                inserting ``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                rescinded by an Act or Acts of Congress''.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'' and inserting ``may--
            ``(1) adopt and enforce measures--
                    ``(A) that meet'';
                    (C) by moving the remaining text of subsection (b) 
                4 ems to the right;
                    (D) by striking ``subsection (c).'' and inserting 
                ``subsection (c); or''; and
                    (E) 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'' and inserting ``$10,000,000 
                        or more--
                    ``(A) in the energy sector'';
                            (ii) by moving the remaining text of 
                        paragraph (1) 2 ems to the right; and
                            (iii) 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'' and 
                        inserting ``$10,000,000''; and
                            (ii) by adding after ``energy sector of 
                        Iran'' the following: ``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.--The term `own or control' means, 
        with respect to an entity--
                    ``(A) to hold more than 20 percent of the equity 
                interest by vote or value in the entity;
                    ``(B) to hold a majority of seats on the board of 
                directors of the entity; or
                    ``(C) to otherwise control the actions, policies, 
                or personnel decisions of the entity.''.
            (6) Subsection (h) is amended--
                    (A) in paragraph (1), by striking ``or subsection 
                (i)'' and inserting ``and subsections (i) and (j)''; 
                and
                    (B) in paragraph (2), by striking ``subsection 
                (i)'' and inserting ``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 of Amendments.--
            ``(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 (other than a measure covered by subsection (i)) 
        that--
                    ``(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) Exemption From Sunset.--Section 401(a) of the Comprehensive 
Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 
855(a)) is amended, in the matter preceding paragraph (1), by striking 
``sections 105 and 305'' and inserting ``sections 105, 202, and 305''.
    (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 et seq.) is amended to read as follows:

 ``TITLE 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) is amended to read as follows:

``SEC. 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 et seq.) is amended--
                    (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.''.

SEC. 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 &quot;investment activities&quot; 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 Act 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 Act 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.