Bill Text: NY A05340 | 2019-2020 | General Assembly | Introduced


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) 2019-02-11 - referred to governmental operations [A05340 Detail]

Download: New_York-2019-A05340-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          5340
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    February 11, 2019
                                       ___________
        Introduced  by  M.  of  A.  ROZIC,  ABBATE, BARCLAY, BARNWELL, BRABENEC,
          BRAUNSTEIN, CROUCH,  CUSICK,  CYMBROWITZ,  DAVILA,  DiPIETRO,  LENTOL,
          FITZPATRICK,  GARBARINO,  LAWRENCE,  MALLIOTAKIS,  McDONOUGH,  MOSLEY,
          ORTIZ, PALUMBO, RA, RAIA, SIMOTAS, STEC -- 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 other laws enacting the Iran divestment act of  2012  is
     5  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-

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01108-01-9

        A. 5340                             2

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

        A. 5340                             3
     1  advance  terrorist activities that will target or affect New York state,
     2  its citizens or their property;
     3    (d)  That Iran has repeatedly demonstrated an intent to pursue and use
     4  nuclear weapons, weapons of mass destruction, and to promote or  advance
     5  terrorist activities across the world;
     6    (e) That respect for human rights in Iran has steadily deteriorated as
     7  demonstrated  by  transparently  fraudulent  elections  and  the  brutal
     8  repression and murder, arbitrary arrests, and show  trials  of  peaceful
     9  dissidents;
    10    (f)  That  the  concerns  of  the state of New York regarding Iran are
    11  strictly the result of the actions of the government of Iran and  should
    12  not be construed as enmity towards the Iranian people;
    13    (g)  That in order to effectively address the need for the governments
    14  of this state to respond to the policies of Iran in a  uniform  fashion,
    15  prohibiting  contracts  with persons engaged in investment activities in
    16  the energy and financial sectors of  Iran  must  be  accomplished  on  a
    17  statewide basis;
    18    (h)  That  terrorists have continued to use Iran as their safe harbor,
    19  that the Iranian government has failed to address the spread of  terror-
    20  ist  activities,  and  that human rights violations are in Iran are, and
    21  continue to be rampant; and
    22    (i) That the serious and urgent nature of the  continued  threat  from
    23  Iran,  for  the  state  of  New  York,  its citizens and their property,
    24  demands that our state, local governments and private institutions  work
    25  together  to  continue  to  do all within its legal power to ensure that
    26  Iran does not have the resources to acquire nuclear  weapons  capability
    27  and that it cease its promotion and advancement of terrorist activities.
    28    §  3.  Paragraph  (b)  of  subdivision 1 of section 165-a of the state
    29  finance law, as added by chapter 1 of the laws of 2012,  is  amended  to
    30  read as follows:
    31    (b)  "Financial  institution" means [the term as used in Section 14 of
    32  the Iran Sanctions Act of 1996  (Public  Law  104-172;  50  U.S.C.  1701
    33  note).]:
    34    (1) a banking organization as defined in subdivision eleven of section
    35  two of the banking law;
    36    (2) a securities firm, including a broker or dealer;
    37    (3)  any  insurance  company, including any company, agent, broker, or
    38  underwriter, licensed  or  regulated  by  the  department  of  financial
    39  services pursuant to the insurance law; and/or
    40    (4)  any other company that provides a financial product or service as
    41  defined in subdivision two of section one hundred four of the  financial
    42  services law.
    43    § 4. Subparagraph 2 of paragraph (e) of subdivision 1 of section 165-a
    44  of  the state finance law, as added by chapter 1 of the laws of 2012, is
    45  amended to read as follows:
    46    (2) Any  governmental  entity  or  instrumentality  of  a  government,
    47  including [a multilateral development institution, as defined in Section
    48  1701(c)(3)  of  the  International Financial Institutions Act (22 U.S.C.
    49  262r(c)(3))] the International Bank for Reconstruction and  Development,
    50  the  European Bank for Reconstruction and Development, the International
    51  Development Association,  the  International  Finance  Corporation,  the
    52  Multilateral  Investment Guarantee Agency, the African Development Bank,
    53  the African Development Fund, the Asian Development Bank, the  Inter-Am-
    54  erican  Development Bank, the Bank for Economic Cooperation and Develop-
    55  ment in the Middle East and North Africa, and the Inter-American Invest-
    56  ment Corporation.

        A. 5340                             4
     1    § 5. Subdivision 6 of section 165-a of the state finance law, as added
     2  by chapter 1 of the laws of 2012, is amended to read as follows:
     3    6.  The  commissioner shall report to the governor and the legislature
     4  annually on or before October first,  on  the  status  of  the  [federal
     5  "Comprehensive  Iran  Sanctions,  Accountability,  and Divestment Act of
     6  2010"  (Public  Law  111-195),  "the  Iran  divestment  act  of  2012",]
     7  provisions  of  the  New York state Iran divestment act and any rules or
     8  regulations adopted thereunder.
     9    § 6. Section 1 of chapter 481 of the laws of 2013 amending the  insur-
    10  ance law relating to investments in foreign states sponsoring terrorism,
    11  is amended to read as follows:
    12    Section 1. The legislature finds and declares all of the following:
    13    [(1)  The  Federal  Securities  and Exchange Commission has determined
    14  that investments in foreign states sponsoring terrorism, such  as  Iran,
    15  that  are subject to sanctions by the United States, may materially harm
    16  the share value of foreign companies. Shares in these foreign  companies
    17  may  be held in the portfolio of insurance companies issuing policies to
    18  New York consumers.
    19    (2) Publicly traded companies in the United States  are  substantially
    20  restricted  in  doing  business in or with foreign states, such as Iran,
    21  that the United States Department of State has identified as  sponsoring
    22  terrorism.
    23    (3)  Identifying  persons  with investments in foreign states, such as
    24  Iran, that sponsor terrorism and ensuring  that  those  investments  are
    25  financially sound is an important public policy priority.
    26    (4)  It is the government of Iran, and not the people of Iran, that is
    27  responsible for Iran's support of terrorism and that  commits  egregious
    28  violations  of human rights under which its own citizens are required to
    29  live.]
    30   (a) That the illicit nuclear activities  of  the  government  of  Iran,
    31  combined  with  its  development of unconventional weapons and ballistic
    32  missiles, and its support of international terrorism, represent a  seri-
    33  ous  threat  to  the security of the state of New York, its citizens and
    34  their property;
    35    (b) That Iran  and  other  terrorist  states  and  organizations  have
    36  repeatedly  identified  New  York  state  and  its citizens as a primary
    37  target for terrorist activities  and  attacks,  and  under  the  state's
    38  constitutional powers to provide for the public health, safety, security
    39  and  public protection of its citizens and their property, and under the
    40  state's constitutional powers to provide for the  protection  and  regu-
    41  lation  of  its  financial, banking and insurance sectors, and under the
    42  state's constitutional powers to provide for the  protection  and  regu-
    43  lation  of its environment and natural resources, New York state has the
    44  legal authority to prevent investment in,  including  prohibiting  entry
    45  into  or  renewing  contracts with, companies operating in Iran's energy
    46  and financial sectors with investments that have the result of  directly
    47  or  indirectly  supporting  the  efforts  of  the  government of Iran to
    48  achieve nuclear weapons capability or to otherwise  promote  or  advance
    49  terrorist  activities  that  will  target  or affect New York state, its
    50  citizens or their property;
    51    (c) That the serious and urgent nature of the threat from Iran demands
    52  that states, local governments, and private institutions  work  together
    53  with  the federal government and American allies to do everything possi-
    54  ble diplomatically, politically, and economically to prevent  Iran  from
    55  acquiring  a  nuclear  weapons  capability  or  to  otherwise promote or

        A. 5340                             5
     1  advance terrorist activities that will target or affect New York  state,
     2  its citizens or their property;
     3    (d)  That Iran has repeatedly demonstrated an intent to pursue and use
     4  nuclear weapons, weapons of mass destruction, and to promote or  advance
     5  terrorist activities across the world;
     6    (e) That respect for human rights in Iran has steadily deteriorated as
     7  demonstrated  by  transparently  fraudulent  elections  and  the  brutal
     8  repression and murder, arbitrary arrests, and show  trials  of  peaceful
     9  dissidents;
    10    (f)  That  the  concerns  of  the state of New York regarding Iran are
    11  strictly the result of the actions of the government of Iran and  should
    12  not be construed as enmity towards the Iranian people;
    13    (g)  That in order to effectively address the need for the governments
    14  of this state to respond to the policies of Iran in a  uniform  fashion,
    15  prohibiting  contracts  with persons engaged in investment activities in
    16  the energy and financial sectors of  Iran  must  be  accomplished  on  a
    17  statewide basis;
    18    (h)  That  terrorists have continued to use Iran as their safe harbor,
    19  that the Iranian government has failed to address the spread of  terror-
    20  ist  activities,  and  that human rights violations are in Iran are, and
    21  continue to be rampant; and
    22    (i) That the serious and urgent nature of the  continued  threat  from
    23  Iran,  for  the  state  of  New  York,  its citizens and their property,
    24  demands that our state, local governments and private institutions  work
    25  together  to  continue  to  do all within its legal power to ensure that
    26  Iran does not have the resources to acquire nuclear  weapons  capability
    27  and that it cease its promotion and advancement of terrorist activities.
    28    § 7. Subsection 5 of section 1415 of the insurance law is REPEALED.
    29    §  8.  This act shall take effect immediately, and shall not be deemed
    30  repealed as the result of any executive action taken by the president of
    31  the United States, or the department of state, unless such action  is  a
    32  duly executed treaty approved by two-thirds of the United States Senate,
    33  and  provided  further that the addition, amendment and/or repeal of any
    34  rule or regulation necessary for  the  implementation  of  this  act  is
    35  authorized to be made on and after such effective date.
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