S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3078
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 23, 2025
                                ___________
 
 Introduced  by  M.  of  A. ROZIC, BARCLAY, BRAUNSTEIN, BRABENEC, DAVILA,
   DiPIETRO, FITZPATRICK, McDONOUGH, RA -- Multi-Sponsored by -- M. of A.
   SIMON -- read once and referred to the Committee on Governmental Oper-
   ations
 
 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".
   §  2.  Section  2  of chapter 1 of the laws of 2012 amending the state
 finance law and the general municipal law enacting the  Iran  divestment
 act of 2012 is amended to read as follows:
   § 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").

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06204-01-5
 A. 3078                             2
              

   (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
 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;
 A. 3078                             3
 
   (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;
   (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  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.
   §  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 PARAGRAPH TWO OF SUBSECTION (A) OF SECTION ONE  HUNDRED  FOUR
 OF THE FINANCIAL SERVICES LAW.
   § 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.
   § 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:
 A. 3078                             4
 
   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.
   § 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;
 A. 3078                             5
 
   (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;
   (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  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.
   § 7. Subsection 5 of section 1415 of the insurance law is REPEALED.
   §  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.
 The  addition,  amendment and/or repeal of any rule or regulation neces-
 sary for the implementation of this act are authorized to be made on and
 after such effective date.