Bill Text: NY A01365 | 2023-2024 | General Assembly | Introduced

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Bill Title: Enacts the New York State Iran divestment act; provides for sanctions against the financial and energy sectors of Iran unless a duly executed treaty is approved by two-thirds of the United States Senate.

Spectrum: Bipartisan Bill

Status: (Introduced) 2024-01-03 - referred to governmental operations [A01365 Detail]

Download: New_York-2023-A01365-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          1365

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    January 17, 2023
                                       ___________

        Introduced  by  M.  of  A. ROZIC, BARCLAY, BRAUNSTEIN, BRABENEC, DAVILA,
          DiPIETRO, FITZPATRICK, McDONOUGH, RA -- Multi-Sponsored by -- M. of A.
          SIMON, THIELE -- read once and referred to the  Committee  on  Govern-
          mental Operations

        AN  ACT to amend the Iran Divestment Act of 2012, the state finance law,
          and chapter 481 of the laws of 2013 amending the insurance law  relat-
          ing to investments in foreign states sponsoring terrorism, in relation
          to  the  divestment  of  Iran; and to repeal certain provisions of the
          insurance law relating thereto

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  This act shall be known and may be cited as the "New York
     2  state Iran divestment act".
     3    § 2. Section 2 of chapter 1 of the laws of  2012  amending  the  state
     4  finance  law  and the general municipal law enacting the Iran divestment
     5  act of 2012 is amended to read as follows:
     6    § 2. The legislature hereby finds and declares all of the following:
     7    [(a) Congress and the  President  have  determined  that  the  illicit
     8  nuclear activities of the Government of Iran, combined with its develop-
     9  ment  of  unconventional weapons and ballistic missiles, and its support
    10  of international terrorism, represent a serious threat to  the  security
    11  of  the United States, Israel, and other United States allies in Europe,
    12  the Middle East, and around the world.
    13    (b) The International  Atomic  Energy  Agency  has  repeatedly  called
    14  attention  to  Iran's unlawful nuclear activities, and, as a result, the
    15  United Nations  Security  Council  has  adopted  a  range  of  sanctions
    16  designed  to  encourage the government of Iran to cease those activities
    17  and comply with its obligations under the Treaty on  the  Non-Prolifera-
    18  tion  of  Nuclear Weapons (commonly known as the "Nuclear Non-Prolifera-
    19  tion Treaty").

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02243-01-3
        A. 1365                             2

     1    (c) On July 1, 2010, President  Barack  Obama  signed  into  law  H.R.
     2  2194,  the "Comprehensive Iran Sanctions, Accountability, and Divestment
     3  Act of 2010" (Public Law 111-195), which expressly authorizes states and
     4  local governments to prevent investment in, including prohibiting  entry
     5  into  or  renewing  contracts with, companies operating in Iran's energy
     6  sector with investments that have the result of directly  or  indirectly
     7  supporting  the  efforts  of  the  government of Iran to achieve nuclear
     8  weapons capability.
     9    (d) The serious and urgent nature of the threat from Iran demands that
    10  states, local governments, and private institutions work  together  with
    11  the  federal  government  and  American allies to do everything possible
    12  diplomatically, politically,  and  economically  to  prevent  Iran  from
    13  acquiring a nuclear weapons capability.
    14    (e)  Respect  for  human  rights  in Iran has steadily deteriorated as
    15  demonstrated  by  transparently  fraudulent  elections  and  the  brutal
    16  repression  and  murder,  arbitrary arrests, and show trials of peaceful
    17  dissidents.
    18    (f) The concerns of the state of New York regarding Iran are  strictly
    19  the  result  of  the actions of the government of Iran and should not be
    20  construed as enmity towards the Iranian people.
    21    (g) In order to effectively address the need for  the  governments  of
    22  this  state  to  respond  to  the policies of Iran in a uniform fashion,
    23  prohibiting contracts with persons engaged in investment  activities  in
    24  the energy sector of Iran must be accomplished on a statewide basis.
    25    (h) It is the intent of the legislature to fully implement the author-
    26  ity  granted  under  Section  202  of  the Comprehensive Iran Sanctions,
    27  Accountability, and Divestment Act of 2010 (Public Law 111-195).]
    28    (a) That the illicit nuclear activities of  the  government  of  Iran,
    29  combined  with  its  development of unconventional weapons and ballistic
    30  missiles, and its support of international terrorism, represent a  seri-
    31  ous  threat  to  the security of the state of New York, its citizens and
    32  their property;
    33    (b) That Iran  and  other  terrorist  states  and  organizations  have
    34  repeatedly  identified  New  York  state  and  its citizens as a primary
    35  target for terrorist activities  and  attacks,  and  under  the  state's
    36  constitutional powers to provide for the public health, safety, security
    37  and  public protection of its citizens and their property, and under the
    38  state's constitutional powers to provide for the  protection  and  regu-
    39  lation  of  its  financial, banking and insurance sectors, and under the
    40  state's constitutional powers to provide for the  protection  and  regu-
    41  lation  of its environment and natural resources, New York state has the
    42  legal authority to prevent investment in,  including  prohibiting  entry
    43  into  or  renewing  contracts with, companies operating in Iran's energy
    44  and financial sectors with investments that have the result of  directly
    45  or  indirectly  supporting  the  efforts  of  the  government of Iran to
    46  achieve nuclear weapons capability or to otherwise  promote  or  advance
    47  terrorist  activities  that  will  target  or affect New York state, its
    48  citizens or their property;
    49    (c) That the serious and urgent nature of the threat from Iran demands
    50  that states, local governments, and private institutions  work  together
    51  with  the federal government and American allies to do everything possi-
    52  ble diplomatically, politically, and economically to prevent  Iran  from
    53  acquiring  a  nuclear  weapons  capability  or  to  otherwise promote or
    54  advance terrorist activities that will target or affect New York  state,
    55  its citizens or their property;
        A. 1365                             3

     1    (d)  That Iran has repeatedly demonstrated an intent to pursue and use
     2  nuclear weapons, weapons of mass destruction, and to promote or  advance
     3  terrorist activities across the world;
     4    (e) That respect for human rights in Iran has steadily deteriorated as
     5  demonstrated  by  transparently  fraudulent  elections  and  the  brutal
     6  repression and murder, arbitrary arrests, and show  trials  of  peaceful
     7  dissidents;
     8    (f)  That  the  concerns  of  the state of New York regarding Iran are
     9  strictly the result of the actions of the government of Iran and  should
    10  not be construed as enmity towards the Iranian people;
    11    (g)  That in order to effectively address the need for the governments
    12  of this state to respond to the policies of Iran in a  uniform  fashion,
    13  prohibiting  contracts  with persons engaged in investment activities in
    14  the energy and financial sectors of  Iran  must  be  accomplished  on  a
    15  statewide basis;
    16    (h)  That  terrorists have continued to use Iran as their safe harbor,
    17  that the Iranian government has failed to address the spread of  terror-
    18  ist  activities,  and  that  human  rights  violations  in Iran are, and
    19  continue to be rampant; and
    20    (i) That the serious and urgent nature of the  continued  threat  from
    21  Iran,  for  the  state  of  New  York,  its citizens and their property,
    22  demands that our state, local governments and private institutions  work
    23  together  to  continue  to  do all within its legal power to ensure that
    24  Iran does not have the resources to acquire nuclear  weapons  capability
    25  and that it cease its promotion and advancement of terrorist activities.
    26    §  3.  Paragraph  (b)  of  subdivision 1 of section 165-a of the state
    27  finance law, as added by chapter 1 of the laws of 2012,  is  amended  to
    28  read as follows:
    29    (b)  "Financial  institution" means [the term as used in Section 14 of
    30  the Iran Sanctions Act of 1996  (Public  Law  104-172;  50  U.S.C.  1701
    31  note)]:
    32    (1) a banking organization as defined in subdivision eleven of section
    33  two of the banking law;
    34    (2) a securities firm, including a broker or dealer;
    35    (3)  any  insurance  company, including any company, agent, broker, or
    36  underwriter, licensed  or  regulated  by  the  department  of  financial
    37  services pursuant to the insurance law; and/or
    38    (4)  any other company that provides a financial product or service as
    39  defined in subdivision two of section one hundred four of the  financial
    40  services law.
    41    § 4. Subparagraph 2 of paragraph (e) of subdivision 1 of section 165-a
    42  of  the state finance law, as added by chapter 1 of the laws of 2012, is
    43  amended to read as follows:
    44    (2) Any  governmental  entity  or  instrumentality  of  a  government,
    45  including [a multilateral development institution, as defined in Section
    46  1701(c)(3)  of  the  International Financial Institutions Act (22 U.S.C.
    47  262r(c)(3))] the International Bank for Reconstruction and  Development,
    48  the  European Bank for Reconstruction and Development, the International
    49  Development Association,  the  International  Finance  Corporation,  the
    50  Multilateral  Investment Guarantee Agency, the African Development Bank,
    51  the African Development Fund, the Asian Development Bank, the  Inter-Am-
    52  erican  Development Bank, the Bank for Economic Cooperation and Develop-
    53  ment in the Middle East and North Africa, and the Inter-American Invest-
    54  ment Corporation.
    55    § 5. Subdivision 6 of section 165-a of the state finance law, as added
    56  by chapter 1 of the laws of 2012, is amended to read as follows:
        A. 1365                             4

     1    6. The commissioner shall report to the governor and  the  legislature
     2  annually  on  or  before  October  first,  on the status of the [federal
     3  "Comprehensive Iran Sanctions, Accountability,  and  Divestment  Act  of
     4  2010"  (Public  Law  111-195),  "the  Iran  divestment  act  of  2012",]
     5  provisions  of  the  New York state Iran divestment act and any rules or
     6  regulations adopted thereunder.
     7    § 6. Section 1 of chapter 481 of the laws of 2013 amending the  insur-
     8  ance law relating to investments in foreign states sponsoring terrorism,
     9  is amended to read as follows:
    10    Section 1. The legislature finds and declares all of the following:
    11    [(1)  The  Federal  Securities  and Exchange Commission has determined
    12  that investments in foreign states sponsoring terrorism, such  as  Iran,
    13  that  are subject to sanctions by the United States, may materially harm
    14  the share value of foreign companies. Shares in these foreign  companies
    15  may  be held in the portfolio of insurance companies issuing policies to
    16  New York consumers.
    17    (2) Publicly traded companies in the United States  are  substantially
    18  restricted  in  doing  business in or with foreign states, such as Iran,
    19  that the United States Department of State has identified as  sponsoring
    20  terrorism.
    21    (3)  Identifying  persons  with investments in foreign states, such as
    22  Iran, that sponsor terrorism and ensuring  that  those  investments  are
    23  financially sound is an important public policy priority.
    24    (4)  It is the government of Iran, and not the people of Iran, that is
    25  responsible for Iran's support of terrorism and that  commits  egregious
    26  violations  of human rights under which its own citizens are required to
    27  live.]
    28   (a) That the illicit nuclear activities  of  the  government  of  Iran,
    29  combined  with  its  development of unconventional weapons and ballistic
    30  missiles, and its support of international terrorism, represent a  seri-
    31  ous  threat  to  the security of the state of New York, its citizens and
    32  their property;
    33    (b) That Iran  and  other  terrorist  states  and  organizations  have
    34  repeatedly  identified  New  York  state  and  its citizens as a primary
    35  target for terrorist activities  and  attacks,  and  under  the  state's
    36  constitutional powers to provide for the public health, safety, security
    37  and  public protection of its citizens and their property, and under the
    38  state's constitutional powers to provide for the  protection  and  regu-
    39  lation  of  its  financial, banking and insurance sectors, and under the
    40  state's constitutional powers to provide for the  protection  and  regu-
    41  lation  of its environment and natural resources, New York state has the
    42  legal authority to prevent investment in,  including  prohibiting  entry
    43  into  or  renewing  contracts with, companies operating in Iran's energy
    44  and financial sectors with investments that have the result of  directly
    45  or  indirectly  supporting  the  efforts  of  the  government of Iran to
    46  achieve nuclear weapons capability or to otherwise  promote  or  advance
    47  terrorist  activities  that  will  target  or affect New York state, its
    48  citizens or their property;
    49    (c) That the serious and urgent nature of the threat from Iran demands
    50  that states, local governments, and private institutions  work  together
    51  with  the federal government and American allies to do everything possi-
    52  ble diplomatically, politically, and economically to prevent  Iran  from
    53  acquiring  a  nuclear  weapons  capability  or  to  otherwise promote or
    54  advance terrorist activities that will target or affect New York  state,
    55  its citizens or their property;
        A. 1365                             5

     1    (d)  That Iran has repeatedly demonstrated an intent to pursue and use
     2  nuclear weapons, weapons of mass destruction, and to promote or  advance
     3  terrorist activities across the world;
     4    (e) That respect for human rights in Iran has steadily deteriorated as
     5  demonstrated  by  transparently  fraudulent  elections  and  the  brutal
     6  repression and murder, arbitrary arrests, and show  trials  of  peaceful
     7  dissidents;
     8    (f)  That  the  concerns  of  the state of New York regarding Iran are
     9  strictly the result of the actions of the government of Iran and  should
    10  not be construed as enmity towards the Iranian people;
    11    (g)  That in order to effectively address the need for the governments
    12  of this state to respond to the policies of Iran in a  uniform  fashion,
    13  prohibiting  contracts  with persons engaged in investment activities in
    14  the energy and financial sectors of  Iran  must  be  accomplished  on  a
    15  statewide basis;
    16    (h)  That  terrorists have continued to use Iran as their safe harbor,
    17  that the Iranian government has failed to address the spread of  terror-
    18  ist  activities,  and  that  human  rights  violations  in Iran are, and
    19  continue to be rampant; and
    20    (i) That the serious and urgent nature of the  continued  threat  from
    21  Iran,  for  the  state  of  New  York,  its citizens and their property,
    22  demands that our state, local governments and private institutions  work
    23  together  to  continue  to  do all within its legal power to ensure that
    24  Iran does not have the resources to acquire nuclear  weapons  capability
    25  and that it cease its promotion and advancement of terrorist activities.
    26    § 7. Subsection 5 of section 1415 of the insurance law is REPEALED.
    27    §  8.  This act shall take effect immediately, and shall not be deemed
    28  repealed as the result of any executive action taken by the president of
    29  the United States, or the department of state, unless such action  is  a
    30  duly executed treaty approved by two-thirds of the United States Senate.
    31  The  addition,  amendment and/or repeal of any rule or regulation neces-
    32  sary for the implementation of this act are authorized to be made on and
    33  after such effective date.