S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  9262

                          I N  A S S E M B L Y

                            February 9, 2016
                               ___________

Introduced  by M. of A. ROZIC -- read once and referred to the Committee
  on Governmental 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:

  Section 1. This act shall be known and may be cited as  the  New  York
state Iran divestment act.
  S  2.  Section  2  of  chapter  1  of the laws 2012 amending the state
finance law and other laws enacting the Iran divestment act of  2012  is
amended to read as follows:
  S 2. The legislature hereby finds and declares all of the following:
  [(a)  Congress  and  the  President  have  determined that the illicit
nuclear activities of the Government of Iran, combined with its develop-
ment of unconventional weapons and ballistic missiles, and  its  support
of  international  terrorism, represent a serious threat to the security
of the United States, Israel, and other United States allies in  Europe,
the Middle East, and around the world.
  (b)  The  International  Atomic  Energy  Agency  has repeatedly called
attention to Iran's unlawful nuclear activities, and, as a  result,  the
United  Nations  Security  Council  has  adopted  a  range  of sanctions
designed to encourage the government of Iran to cease  those  activities
and  comply  with its obligations under the Treaty on the Non-Prolifera-
tion of Nuclear Weapons (commonly known as the  "Nuclear  Non-Prolifera-
tion Treaty").
  (c)  On  July  1,  2010,  President  Barack Obama signed into law H.R.
2194, the "Comprehensive Iran Sanctions, Accountability, and  Divestment
Act of 2010" (Public Law 111-195), which expressly authorizes states and
local  governments to prevent investment in, including prohibiting entry
into or renewing contracts with, companies operating  in  Iran's  energy
sector  with  investments that have the result of directly or indirectly

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

                                                           LBD11938-02-5

A. 9262                             2

supporting the efforts of the government  of  Iran  to  achieve  nuclear
weapons capability.
  (d) The serious and urgent nature of the threat from Iran demands that
states,  local  governments, and private institutions work together with
the federal government and American allies  to  do  everything  possible
diplomatically,  politically,  and  economically  to  prevent  Iran from
acquiring a nuclear weapons capability.
  (e) Respect for human rights in  Iran  has  steadily  deteriorated  as
demonstrated  by  transparently  fraudulent  elections  and  the  brutal
repression and murder, arbitrary arrests, and show  trials  of  peaceful
dissidents.
  (f)  The concerns of the state of New York regarding Iran are strictly
the result of the actions of the government of Iran and  should  not  be
construed as enmity towards the Iranian people.
  (g)  In  order  to effectively address the need for the governments of
this state to respond to the policies of  Iran  in  a  uniform  fashion,
prohibiting  contracts  with persons engaged in investment activities in
the energy sector of Iran must be accomplished on a statewide basis.
  (h) It is the intent of the legislature to fully implement the author-
ity granted under Section  202  of  the  Comprehensive  Iran  Sanctions,
Accountability, and Divestment Act of 2010 (Public Law 111-195).]
  (A)  THAT  THE  ILLICIT  NUCLEAR ACTIVITIES OF THE GOVERNMENT OF IRAN,
COMBINED WITH ITS DEVELOPMENT OF UNCONVENTIONAL  WEAPONS  AND  BALLISTIC
MISSILES,  AND ITS SUPPORT OF INTERNATIONAL TERRORISM, REPRESENT A SERI-
OUS THREAT TO THE SECURITY OF THE STATE OF NEW YORK,  ITS  CITIZENS  AND
THEIR PROPERTY;
  (B)  THAT  IRAN  AND  OTHER  TERRORIST  STATES  AND ORGANIZATIONS HAVE
REPEATEDLY IDENTIFIED NEW YORK STATE  AND  ITS  CITIZENS  AS  A  PRIMARY
TARGET  FOR  TERRORIST  ACTIVITIES  AND  ATTACKS,  AND UNDER THE STATE'S
CONSTITUTIONAL POWERS TO PROVIDE FOR THE PUBLIC HEALTH, SAFETY, SECURITY
AND PUBLIC PROTECTION OF ITS CITIZENS AND THEIR PROPERTY, AND UNDER  THE
STATE'S  CONSTITUTIONAL  POWERS  TO PROVIDE FOR THE PROTECTION AND REGU-
LATION OF ITS FINANCIAL, BANKING AND INSURANCE SECTORS,  AND  UNDER  THE
STATE'S  CONSTITUTIONAL  POWERS  TO PROVIDE FOR THE PROTECTION AND REGU-
LATION OF ITS ENVIRONMENT AND NATURAL RESOURCES, NEW YORK STATE HAS  THE
LEGAL  AUTHORITY  TO  PREVENT INVESTMENT IN, INCLUDING PROHIBITING ENTRY
INTO OR RENEWING CONTRACTS WITH, COMPANIES OPERATING  IN  IRAN'S  ENERGY
AND  FINANCIAL SECTORS WITH INVESTMENTS THAT HAVE THE RESULT OF DIRECTLY
OR INDIRECTLY SUPPORTING THE  EFFORTS  OF  THE  GOVERNMENT  OF  IRAN  TO
ACHIEVE  NUCLEAR  WEAPONS  CAPABILITY OR TO OTHERWISE PROMOTE OR ADVANCE
TERRORIST ACTIVITIES THAT WILL TARGET OR  AFFECT  NEW  YORK  STATE,  ITS
CITIZENS OR THEIR PROPERTY;
  (C) THAT THE SERIOUS AND URGENT NATURE OF THE THREAT FROM IRAN DEMANDS
THAT  STATES,  LOCAL GOVERNMENTS, AND PRIVATE INSTITUTIONS WORK TOGETHER
WITH THE FEDERAL GOVERNMENT AND AMERICAN ALLIES TO DO EVERYTHING  POSSI-
BLE  DIPLOMATICALLY,  POLITICALLY, AND ECONOMICALLY TO PREVENT IRAN FROM
ACQUIRING A NUCLEAR  WEAPONS  CAPABILITY  OR  TO  OTHERWISE  PROMOTE  OR
ADVANCE  TERRORIST ACTIVITIES THAT WILL TARGET OR AFFECT NEW YORK STATE,
ITS CITIZENS OR THEIR PROPERTY;
  (D) THAT IRAN HAS REPEATEDLY DEMONSTRATED AN INTENT TO PURSUE AND  USE
NUCLEAR  WEAPONS, WEAPONS OF MASS DESTRUCTION, AND TO PROMOTE OR ADVANCE
TERRORIST ACTIVITIES ACROSS THE WORLD;
  (E) THAT RESPECT FOR HUMAN RIGHTS IN IRAN HAS STEADILY DETERIORATED AS
DEMONSTRATED  BY  TRANSPARENTLY  FRAUDULENT  ELECTIONS  AND  THE  BRUTAL
REPRESSION  AND  MURDER,  ARBITRARY ARRESTS, AND SHOW TRIALS OF PEACEFUL
DISSIDENTS;

A. 9262                             3

  (F) THAT THE CONCERNS OF THE STATE OF  NEW  YORK  REGARDING  IRAN  ARE
STRICTLY  THE RESULT OF THE ACTIONS OF THE GOVERNMENT OF IRAN AND SHOULD
NOT BE CONSTRUED AS ENMITY TOWARDS THE IRANIAN PEOPLE;
  (G)  THAT IN ORDER TO EFFECTIVELY ADDRESS THE NEED FOR THE GOVERNMENTS
OF THIS STATE TO RESPOND TO THE POLICIES OF IRAN IN A  UNIFORM  FASHION,
PROHIBITING  CONTRACTS  WITH PERSONS ENGAGED IN INVESTMENT ACTIVITIES IN
THE ENERGY AND FINANCIAL SECTORS OF  IRAN  MUST  BE  ACCOMPLISHED  ON  A
STATEWIDE BASIS;
  (H)  THAT  TERRORISTS HAVE CONTINUED TO USE IRAN AS THEIR SAFE HARBOR,
THAT THE IRANIAN GOVERNMENT HAS FAILED TO ADDRESS THE SPREAD OF  TERROR-
IST  ACTIVITIES,  AND  THAT HUMAN RIGHTS VIOLATIONS ARE IN IRAN ARE, AND
CONTINUE TO BE RAMPANT; AND
  (I) THAT THE SERIOUS AND URGENT NATURE OF THE  CONTINUED  THREAT  FROM
IRAN,  FOR  THE  STATE  OF  NEW  YORK,  ITS CITIZENS AND THEIR PROPERTY,
DEMANDS THAT OUR STATE, LOCAL GOVERNMENTS AND PRIVATE INSTITUTIONS  WORK
TOGETHER  TO  CONTINUE  TO  DO ALL WITHIN ITS LEGAL POWER TO ENSURE THAT
IRAN DOES NOT HAVE THE RESOURCES TO ACQUIRE NUCLEAR  WEAPONS  CAPABILITY
AND THAT IT CEASE ITS PROMOTION AND ADVANCEMENT OF TERRORIST ACTIVITIES.
  S  3.  Paragraph  b  of  subdivision  1  of section 165-a of the state
finance law, as added by chapter 1 of the laws of 2012,  is  amended  to
read as follows:
  (b)  "Financial  institution" means [the term as used in Section 14 of
the Iran Sanctions Act of 1996  (Public  Law  104-172;  50  U.S.C.  1701
note).]:
  (1) A BANKING ORGANIZATION AS DEFINED IN SUBDIVISION ELEVEN OF SECTION
TWO OF THE BANKING LAW;
  (2) A SECURITIES FIRM, INCLUDING A BROKER OR DEALER;
  (3)  ANY  INSURANCE  COMPANY, INCLUDING ANY COMPANY, AGENT, BROKER, OR
UNDERWRITER, LICENSED  OR  REGULATED  BY  THE  DEPARTMENT  OF  FINANCIAL
SERVICES PURSUANT TO THE INSURANCE LAW; AND/OR
  (4)  ANY OTHER COMPANY THAT PROVIDES A FINANCIAL PRODUCT OR SERVICE AS
DEFINED IN SUBDIVISION TWO OF SECTION ONE HUNDRED FOUR OF THE  FINANCIAL
SERVICES LAW.
  S  4.  Subparagraph 2 of paragraph e of subdivision 1 of section 165-a
of the state finance law, as added by chapter 1 of the laws of 2012,  is
amended to read as follows:
  (2)  Any  governmental  entity  or  instrumentality  of  a government,
including [a multilateral development institution, as defined in Section
1701(c)(3) of the International Financial Institutions  Act  (22  U.S.C.
262r(c)(3))]  THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT,
THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT, THE  INTERNATIONAL
DEVELOPMENT  ASSOCIATION,  THE  INTERNATIONAL  FINANCE  CORPORATION, THE
MULTILATERAL INVESTMENT GUARANTEE AGENCY, THE AFRICAN DEVELOPMENT  BANK,
THE  AFRICAN DEVELOPMENT FUND, THE ASIAN DEVELOPMENT BANK, THE INTER-AM-
ERICAN DEVELOPMENT BANK, THE BANK FOR ECONOMIC COOPERATION AND  DEVELOP-
MENT IN THE MIDDLE EAST AND NORTH AFRICA, AND THE INTER-AMERICAN INVEST-
MENT CORPORATION.
  S 5. Subdivision 6 of section 165-a of the state finance law, as added
by chapter 1 of the laws of 2012, is amended to read as follows:
  6.  The  commissioner shall report to the governor and the legislature
annually on or before October first,  on  the  status  of  the  [federal
"Comprehensive  Iran  Sanctions,  Accountability,  and Divestment Act of
2010"  (Public  Law  111-195),  "the  Iran  divestment  act  of  2012",]
PROVISIONS  OF  THE  NEW YORK STATE IRAN DIVESTMENT ACT and any rules or
regulations adopted thereunder.

A. 9262                             4

  S 6. Section 1 of chapter 481 of the laws of 2013 amending the  insur-
ance law relating to investments in foreign states sponsoring terrorism,
is amended to read as follows:
  Section 1. The legislature finds and declares all of the following:
  [(1)  The  Federal  Securities  and Exchange Commission has determined
that investments in foreign states sponsoring terrorism, such  as  Iran,
that  are subject to sanctions by the United States, may materially harm
the share value of foreign companies. Shares in these foreign  companies
may  be held in the portfolio of insurance companies issuing policies to
New York consumers.
  (2) Publicly traded companies in the United States  are  substantially
restricted  in  doing  business in or with foreign states, such as Iran,
that the United States Department of State has identified as  sponsoring
terrorism.
  (3)  Identifying  persons  with investments in foreign states, such as
Iran, that sponsor terrorism and ensuring  that  those  investments  are
financially sound is an important public policy priority.
  (4)  It is the government of Iran, and not the people of Iran, that is
responsible for Iran's support of terrorism and that  commits  egregious
violations  of human rights under which its own citizens are required to
live.]
 (A) THAT THE ILLICIT NUCLEAR ACTIVITIES  OF  THE  GOVERNMENT  OF  IRAN,
COMBINED  WITH  ITS  DEVELOPMENT OF UNCONVENTIONAL WEAPONS AND BALLISTIC
MISSILES, AND ITS SUPPORT OF INTERNATIONAL TERRORISM, REPRESENT A  SERI-
OUS  THREAT  TO  THE SECURITY OF THE STATE OF NEW YORK, ITS CITIZENS AND
THEIR PROPERTY;
  (B) THAT IRAN  AND  OTHER  TERRORIST  STATES  AND  ORGANIZATIONS  HAVE
REPEATEDLY  IDENTIFIED  NEW  YORK  STATE  AND  ITS CITIZENS AS A PRIMARY
TARGET FOR TERRORIST ACTIVITIES  AND  ATTACKS,  AND  UNDER  THE  STATE'S
CONSTITUTIONAL POWERS TO PROVIDE FOR THE PUBLIC HEALTH, SAFETY, SECURITY
AND  PUBLIC PROTECTION OF ITS CITIZENS AND THEIR PROPERTY, AND UNDER THE
STATE'S CONSTITUTIONAL POWERS TO PROVIDE FOR THE  PROTECTION  AND  REGU-
LATION  OF  ITS  FINANCIAL, BANKING AND INSURANCE SECTORS, AND UNDER THE
STATE'S CONSTITUTIONAL POWERS TO PROVIDE FOR THE  PROTECTION  AND  REGU-
LATION  OF ITS ENVIRONMENT AND NATURAL RESOURCES, NEW YORK STATE HAS THE
LEGAL AUTHORITY TO PREVENT INVESTMENT IN,  INCLUDING  PROHIBITING  ENTRY
INTO  OR  RENEWING  CONTRACTS WITH, COMPANIES OPERATING IN IRAN'S ENERGY
AND FINANCIAL SECTORS WITH INVESTMENTS THAT HAVE THE RESULT OF  DIRECTLY
OR  INDIRECTLY  SUPPORTING  THE  EFFORTS  OF  THE  GOVERNMENT OF IRAN TO
ACHIEVE NUCLEAR WEAPONS CAPABILITY OR TO OTHERWISE  PROMOTE  OR  ADVANCE
TERRORIST  ACTIVITIES  THAT  WILL  TARGET  OR AFFECT NEW YORK STATE, ITS
CITIZENS OR THEIR PROPERTY;
  (C) THAT THE SERIOUS AND URGENT NATURE OF THE THREAT FROM IRAN DEMANDS
THAT STATES, LOCAL GOVERNMENTS, AND PRIVATE INSTITUTIONS  WORK  TOGETHER
WITH  THE FEDERAL GOVERNMENT AND AMERICAN ALLIES TO DO EVERYTHING POSSI-
BLE DIPLOMATICALLY, POLITICALLY, AND ECONOMICALLY TO PREVENT  IRAN  FROM
ACQUIRING  A  NUCLEAR  WEAPONS  CAPABILITY  OR  TO  OTHERWISE PROMOTE OR
ADVANCE TERRORIST ACTIVITIES THAT WILL TARGET OR AFFECT NEW YORK  STATE,
ITS CITIZENS OR THEIR PROPERTY;
  (D)  THAT IRAN HAS REPEATEDLY DEMONSTRATED AN INTENT TO PURSUE AND USE
NUCLEAR WEAPONS, WEAPONS OF MASS DESTRUCTION, AND TO PROMOTE OR  ADVANCE
TERRORIST ACTIVITIES ACROSS THE WORLD;
  (E) THAT RESPECT FOR HUMAN RIGHTS IN IRAN HAS STEADILY DETERIORATED AS
DEMONSTRATED  BY  TRANSPARENTLY  FRAUDULENT  ELECTIONS  AND  THE  BRUTAL
REPRESSION AND MURDER, ARBITRARY ARRESTS, AND SHOW  TRIALS  OF  PEACEFUL
DISSIDENTS;

A. 9262                             5

  (F)  THAT  THE  CONCERNS  OF  THE STATE OF NEW YORK REGARDING IRAN ARE
STRICTLY THE RESULT OF THE ACTIONS OF THE GOVERNMENT OF IRAN AND  SHOULD
NOT BE CONSTRUED AS ENMITY TOWARDS THE IRANIAN PEOPLE;
  (G)  THAT IN ORDER TO EFFECTIVELY ADDRESS THE NEED FOR THE GOVERNMENTS
OF THIS STATE TO RESPOND TO THE POLICIES OF IRAN IN A  UNIFORM  FASHION,
PROHIBITING  CONTRACTS  WITH PERSONS ENGAGED IN INVESTMENT ACTIVITIES IN
THE ENERGY AND FINANCIAL SECTORS OF  IRAN  MUST  BE  ACCOMPLISHED  ON  A
STATEWIDE BASIS;
  (H)  THAT  TERRORISTS HAVE CONTINUED TO USE IRAN AS THEIR SAFE HARBOR,
THAT THE IRANIAN GOVERNMENT HAS FAILED TO ADDRESS THE SPREAD OF  TERROR-
IST  ACTIVITIES,  AND  THAT HUMAN RIGHTS VIOLATIONS ARE IN IRAN ARE, AND
CONTINUE TO BE RAMPANT; AND
  (I) THAT THE SERIOUS AND URGENT NATURE OF THE  CONTINUED  THREAT  FROM
IRAN,  FOR  THE  STATE  OF  NEW  YORK,  ITS CITIZENS AND THEIR PROPERTY,
DEMANDS THAT OUR STATE, LOCAL GOVERNMENTS AND PRIVATE INSTITUTIONS  WORK
TOGETHER  TO  CONTINUE  TO  DO ALL WITHIN ITS LEGAL POWER TO ENSURE THAT
IRAN DOES NOT HAVE THE RESOURCES TO ACQUIRE NUCLEAR  WEAPONS  CAPABILITY
AND THAT IT CEASE ITS PROMOTION AND ADVANCEMENT OF TERRORIST ACTIVITIES.
  S 7. Subsection 5 of section 1415 of the insurance law is REPEALED.
  S  8.  This act shall take effect immediately, and shall not be deemed
repealed as the result of any executive action taken by the president of
the United States, or the department of state, unless such action  is  a
duly executed treaty approved by two-thirds of the United States Senate,
and  provided  further that the addition, amendment and/or repeal of any
rule or regulation necessary for  the  implementation  of  this  act  is
authorized to be made on and after such effective date.