Bill Text: NY S04107 | 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: Partisan Bill (Republican 1-0)

Status: (Introduced) 2019-03-19 - RECOMMIT, ENACTING CLAUSE STRICKEN [S04107 Detail]

Download: New_York-2019-S04107-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          4107
                               2019-2020 Regular Sessions
                    IN SENATE
                                    February 28, 2019
                                       ___________
        Introduced  by  Sen.  ORTT  --  read twice and ordered printed, and when
          printed to be committed to the Committee on Finance
        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-
    18  tion of Nuclear Weapons (commonly known as the  "Nuclear  Non-Prolifera-
    19  tion Treaty").
    20    (c)  On  July  1,  2010,  President  Barack Obama signed into law H.R.
    21  2194, the "Comprehensive Iran Sanctions, Accountability, and  Divestment
    22  Act of 2010" (Public Law 111-195), which expressly authorizes states and

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

        S. 4107                             2

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

        S. 4107                             3
     1    (e) That respect for human rights in Iran has steadily deteriorated as
     2  demonstrated  by  transparently  fraudulent  elections  and  the  brutal
     3  repression and murder, arbitrary arrests, and show  trials  of  peaceful
     4  dissidents;
     5    (f)  That  the  concerns  of  the state of New York regarding Iran are
     6  strictly the result of the actions of the government of Iran and  should
     7  not be construed as enmity towards the Iranian people;
     8    (g)  That in order to effectively address the need for the governments
     9  of this state to respond to the policies of Iran in a  uniform  fashion,
    10  prohibiting  contracts  with persons engaged in investment activities in
    11  the energy and financial sectors of  Iran  must  be  accomplished  on  a
    12  statewide basis;
    13    (h)  That  terrorists have continued to use Iran as their safe harbor,
    14  that the Iranian government has failed to address the spread of  terror-
    15  ist  activities,  and  that human rights violations are in Iran are, and
    16  continue to be rampant; and
    17    (i) That the serious and urgent nature of the  continued  threat  from
    18  Iran,  for  the  state  of  New  York,  its citizens and their property,
    19  demands that our state, local governments and private institutions  work
    20  together  to  continue  to  do all within its legal power to ensure that
    21  Iran does not have the resources to acquire nuclear  weapons  capability
    22  and that it cease its promotion and advancement of terrorist activities.
    23    §  3.  Paragraph  (b)  of  subdivision 1 of section 165-a of the state
    24  finance law, as added by chapter 1 of the laws of 2012,  is  amended  to
    25  read as follows:
    26    (b)  "Financial  institution" means [the term as used in Section 14 of
    27  the Iran Sanctions Act of 1996  (Public  Law  104-172;  50  U.S.C.  1701
    28  note).]:
    29    (1) a banking organization as defined in subdivision eleven of section
    30  two of the banking law;
    31    (2) a securities firm, including a broker or dealer;
    32    (3)  any  insurance  company, including any company, agent, broker, or
    33  underwriter, licensed  or  regulated  by  the  department  of  financial
    34  services pursuant to the insurance law; and/or
    35    (4)  any other company that provides a financial product or service as
    36  defined in subdivision two of section one hundred four of the  financial
    37  services law.
    38    § 4. Subparagraph 2 of paragraph (e) of subdivision 1 of section 165-a
    39  of  the state finance law, as added by chapter 1 of the laws of 2012, is
    40  amended to read as follows:
    41    (2) Any  governmental  entity  or  instrumentality  of  a  government,
    42  including [a multilateral development institution, as defined in Section
    43  1701(c)(3)  of  the  International Financial Institutions Act (22 U.S.C.
    44  262r(c)(3))] the International Bank for Reconstruction and  Development,
    45  the  European Bank for Reconstruction and Development, the International
    46  Development Association,  the  International  Finance  Corporation,  the
    47  Multilateral  Investment Guarantee Agency, the African Development Bank,
    48  the African Development Fund, the Asian Development Bank, the  Inter-Am-
    49  erican  Development Bank, the Bank for Economic Cooperation and Develop-
    50  ment in the Middle East and North Africa, and the Inter-American Invest-
    51  ment Corporation.
    52    § 5. Subdivision 6 of section 165-a of the state finance law, as added
    53  by chapter 1 of the laws of 2012, is amended to read as follows:
    54    6. The commissioner shall report to the governor and  the  legislature
    55  annually  on  or  before  October  first,  on the status of the [federal
    56  "Comprehensive Iran Sanctions, Accountability,  and  Divestment  Act  of

        S. 4107                             4

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

        S. 4107                             5
     1    (e) That respect for human rights in Iran has steadily deteriorated as
     2  demonstrated  by  transparently  fraudulent  elections  and  the  brutal
     3  repression  and  murder,  arbitrary arrests, and show trials of peaceful
     4  dissidents;
     5    (f)  That  the  concerns  of  the state of New York regarding Iran are
     6  strictly the result of the actions of the government of Iran and  should
     7  not be construed as enmity towards the Iranian people;
     8    (g)  That in order to effectively address the need for the governments
     9  of this state to respond to the policies of Iran in a  uniform  fashion,
    10  prohibiting  contracts  with persons engaged in investment activities in
    11  the energy and financial sectors of  Iran  must  be  accomplished  on  a
    12  statewide basis;
    13    (h)  That  terrorists have continued to use Iran as their safe harbor,
    14  that the Iranian government has failed to address the spread of  terror-
    15  ist  activities,  and  that human rights violations are in Iran are, and
    16  continue to be rampant; and
    17    (i) That the serious and urgent nature of the  continued  threat  from
    18  Iran,  for  the  state  of  New  York,  its citizens and their property,
    19  demands that our state, local governments and private institutions  work
    20  together  to  continue  to  do all within its legal power to ensure that
    21  Iran does not have the resources to acquire nuclear  weapons  capability
    22  and that it cease its promotion and advancement of terrorist activities.
    23    § 7. Subsection 5 of section 1415 of the insurance law is REPEALED.
    24    §  8.  This act shall take effect immediately, and shall not be deemed
    25  repealed as the result of any executive action taken by the president of
    26  the United States, or the department of state, unless such action  is  a
    27  duly executed treaty approved by two-thirds of the United States Senate,
    28  and  provided  further that the addition, amendment and/or repeal of any
    29  rule or regulation necessary for  the  implementation  of  this  act  is
    30  authorized to be made on and after such effective date.
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