§8532 Authority of State and Local Governments to Divest From Certain Companies That Invest in Iran

Summary

Allows a State or local government to sell off or block investment of public money in any person that the State finds, using credible public information, is investing in Iran’s energy sector while Iran is under U.S. economic sanctions. A person is covered if they have $20,000,000 or more invested in Iran’s energy sector (this includes firms that supply oil or liquefied natural gas tankers or parts used to build or keep pipelines working), or if a financial institution lends $20,000,000 or more for 45 days or more for someone to invest in Iran’s energy sector. The State must give written notice to the person, wait at least 90 days after that notice before the measure takes effect, and let the person submit written comments or show they do not do the covered activity. If the person proves they do not engage in those investments, the measure cannot apply. The State must tell the U.S. Attorney General in writing within 30 days after adopting the measure. Federal law does not override these State actions. “Assets” means public money, including pensions, retirements, annuities, endowments, or similar funds the State controls (but not employee benefit plans covered by title I of ERISA). “Investment” means giving funds or property, making a loan or credit, or entering or renewing a contract for goods or services. These rules apply to measures adopted before, on, or after July 1, 2010; the notice and timing rules apply to measures adopted on or after July 1, 2010. Measures adopted before July 1, 2010 may be enforced without the notice rules until 2 years after July 1, 2010, when some notice and timing requirements begin to apply. Nothing in this law limits a State’s authority to regulate the safety or soundness of financial institutions or the business of insurance.