Title: State Sanctions Against Iranian Terrorism Act
Policy area: International Affairs

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.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3425 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 3425

    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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 26, 2017

Mr. DeSantis (for himself, Mr. Cook, Mr. Diaz-Balart, Mr. Sessions, Mr. 
Walker, Mr. Rokita, Mr. Ross, Mr. Lamborn, Mr. Meadows, Mr. Zeldin, Mr. 
  Mooney of West Virginia, Mr. King of Iowa, Mr. Jordan, Mr. Francis 
Rooney of Florida, Mr. Rutherford, Mr. Bishop of Michigan, Mr. Garrett, 
 Mr. Collins of New York, Mr. Ratcliffe, and Mr. Posey) introduced the 
   following bill; which was referred to the Committee on Financial 
Services, and in addition to the Committee on Rules, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
    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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

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 striking ``subsection (c).'' and inserting 
                ``subsection (c); or''; and
                    (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'' and inserting ``$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'' 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.--An entity is `owned or controlled' 
        by the Government of Iran if the Government of Iran--
                    ``(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 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.--
            ``(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) 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)) is amended--
            (1) by striking ``The provisions of this Act'' and 
        inserting the following:
            ``(1) In general.--Subject to paragraph (2), the provisions 
        of this Act'';
            (2) by striking ``(1) the Government of Iran'' and 
        inserting ``(A) the Government of Iran'' and moving the text of 
        subparagraph (A) (as redesignated) 2 ems to the right;
            (3) by striking ``(A) section 6(j)(1)(A)'' and inserting 
        ``(i) section 6(j)(1)(A)'' and moving the text of clause (i) 
        (as redesignated) 2 ems to the right;
            (4) by striking ``(B) section 40(d)'' and inserting ``(ii) 
        section 40(d)'' and moving the text of clause (ii) (as 
        redesignated) 2 ems to the right;
            (5) by striking ``(C) section 620A(a)'' and inserting 
        ``(iii) section 620A(a)'' and moving the text of clause (iii) 
        (as redesignated) 2 ems to the right;
            (6) by striking ``(2) Iran has ceased'' and inserting ``(B) 
        Iran has ceased''; and
            (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), except that references in such paragraphs to 
                the Committees on Appropriations of the House of 
                Representatives and the Senate shall be deemed to be 
                references to the Committee on Financial Services of 
                the House of Representatives and the Committee on 
                Banking, Housing, and Urban Affairs of the Senate, 
                respectively.''.
    (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.
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