22 U.S.C. § 8532 — Authority of State and local governments

Page 2090 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 8531 Export-Import Bank of the United States ap- proves cofinancing (including loans, guarantees, other credits, insurance, and reinsurance) in which an export credit agency of a foreign coun- try identified in the report required by sub- section (a) will participate, the President shall submit to the appropriate congressional com- mittees a report identifying— (1) the export credit agency of the foreign country; and (2) the beneficiaries of the financing. (Pub. L. 111–195, title I, § 111, July 1, 2010, 124 Stat. 1339.) TERMINATION OF SECTION For termination of section, see section 8551(a) of this title. Editorial Notes REFERENCES IN TEXT Section 5 of the Iran Sanctions Act of 1996, as amend- ed by section 102 of this Act, referred to in subsec. (a)(1), is section 5 of Pub. L. 104–172, as amended by sec- tion 102 of Pub. L. 111–195, which is set out as a note under section 1701 of Title 50, War and National De- fense. Executive Documents DELEGATION OF FUNCTIONS For delegation of functions of President under this section, see Memorandum of President of the United States, Sept. 23, 2010, 75 F.R. 67025, set out as a note under section 8501 of this title. SUBCHAPTER II—DIVESTMENT FROM CER- TAIN COMPANIES THAT INVEST IN IRAN § 8531. Definitions In this subchapter: (1) Energy sector of Iran The term ‘‘energy sector of Iran’’ refers to activities to develop petroleum or natural gas resources or nuclear power in Iran. (2) Financial institution The term ‘‘financial institution’’ has the meaning given that term in section 14 of the Iran Sanctions Act of 1996 (Public Law 104–172; 50 U.S.C. 1701 note). (3) Iran The term ‘‘Iran’’ includes the Government of Iran and any agency or instrumentality of Iran. (4) Person The term ‘‘person’’ means— (A) a natural person, corporation, com- pany, business association, partnership, soci- ety, trust, or any other nongovernmental en- tity, organization, or group; (B) any governmental entity or instrumen- tality of a government, including a multilat- eral development institution (as defined in section 262r(c)(3) of this title); and (C) any successor, subunit, parent entity, or subsidiary of, or any entity under com- mon ownership or control with, any entity described in subparagraph (A) or (B). (5) State The term ‘‘State’’ means each of the several States, the District of Columbia, the Common- wealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, American Samoa, Guam, the United States Virgin Is- lands, and any other territory or possession of the United States. (6) State or local government The term ‘‘State or local government’’ in- cludes— (A) any State and any agency or instru- mentality thereof; (B) any local government within a State, and any agency or instrumentality thereof; (C) any other governmental instrumen- tality of a State or locality; and (D) any public institution of higher edu- cation within the meaning of the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.). (Pub. L. 111–195, title II, § 201, July 1, 2010, 124 Stat. 1341.) TERMINATION OF SECTION For termination of section, see section 8551(a) of this title. Editorial Notes REFERENCES IN TEXT This subchapter, referred to in text, was in the origi- nal ‘‘this title’’, meaning Pub. L. 111–195, title II, July 1, 2010, 124 Stat. 1341, which enacted this subchapter, amended section 80a–13 of Title 15, Commerce and Trade, enacted provisions set out as notes under sec- tion 80a–13 of Title 15, and amended provisions set out as a note under section 1701 of Title 50, War and Na- tional Defense. For complete classification of title II to the Code, see Tables. The Higher Education Act of 1965, referred to in par. (6)(D), is Pub. L. 89–329, Nov. 8, 1965, 79 Stat. 1219, which is classified generally to chapter 28 (§ 1001 et seq.) of Title 20, Education. For complete classification of this Act to the Code, see Short Title note set out under sec- tion 1001 of Title 20 and Tables. § 8532. Authority of State and local governments to divest from certain companies that invest in Iran (a) Sense of Congress It is the sense of Congress that the United States should support the decision of any State or local government that for moral, prudential, or reputational reasons divests from, or pro- hibits the investment of assets of the State or local government in, a person that engages in investment activities in the energy sector of Iran, as long as Iran is subject to economic sanc- tions imposed by the United States. (b) Authority to divest Notwithstanding any other provision of law, a State or local government may adopt and en- force measures that meet the requirements of subsection (d) to divest the assets of the State or local government from, or prohibit invest- ment of the assets of the State or local govern- ment in, any person that the State or local gov- ernment determines, using credible information available to the public, engages in investment activities in Iran described in subsection (c). (c) Investment activities described A person engages in investment activities in Iran described in this subsection if the person— Page 2091 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 8532 (1) has an investment of $20,000,000 or more in the energy sector of Iran, including in a person that provides oil or liquified natural gas tankers, or products used to construct or maintain pipelines used to transport oil or liquified natural gas, for the energy sector of Iran; or (2) is a financial institution that extends $20,000,000 or more in credit to another person, for 45 days or more, if that person will use the credit for investment in the energy sector of Iran. (d) Requirements Any measure taken by a State or local govern- ment under subsection (b) shall meet the fol- lowing requirements: (1) Notice The State or local government shall provide written notice to each person to which a meas- ure is to be applied. (2) Timing The measure shall apply to a person not ear- lier than the date that is 90 days after the date on which written notice is provided to the per- son under paragraph (1). (3) Opportunity for hearing The State or local government shall provide an opportunity to comment in writing to each person to which a measure is to be applied. If the person demonstrates to the State or local government that the person does not engage in investment activities in Iran described in sub- section (c), the measure shall not apply to the person. (4) Sense of Congress on avoiding erroneous targeting It is the sense of Congress that a State or local government should not adopt a measure under subsection (b) with respect to a person unless the State or local government has made every effort to avoid erroneously targeting the person and has verified that the person en- gages in investment activities in Iran de- scribed in subsection (c). (e) Notice to Department of Justice Not later than 30 days after adopting a meas- ure pursuant to subsection (b), a State or local government shall submit written notice to the Attorney General describing the measure. (f) Nonpreemption A measure of a State or local government au- thorized under subsection (b) or (i) is not pre- empted by any Federal law or regulation. (g) Definitions In this section: (1) Assets (A) In general Except as provided in subparagraph (B), the term ‘‘assets’’ refers to public monies and includes any pension, retirement, annu- ity, or endowment fund, or similar instru- ment, that is controlled by a State or local government. (B) Exception The term ‘‘assets’’ does not include em- ployee benefit plans covered by title I of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1001 et seq.). (2) Investment The ‘‘investment’’ includes— (A) a commitment or contribution of funds or property; (B) a loan or other extension of credit; and (C) the entry into or renewal of a contract for goods or services. (h) Effective date (1) In general Except as provided in paragraph (2) or sub- section (i), this section applies to measures adopted by a State or local government before, on, or after July 1, 2010. (2) Notice requirements Except as provided in subsection (i), sub- sections (d) and (e) apply to measures adopted by a State or local government on or after July 1, 2010. (i) Authorization for prior enacted measures (1) In general Notwithstanding any other provision of this section or any other provision of law, a State or local government may enforce a measure (without regard to the requirements of sub- section (d), except as provided in paragraph (2)) adopted by the State or local government before July 1, 2010, that provides for the di- vestment of assets of the State or local gov- ernment from, or prohibits the investment of the assets of the State or local government in, any person that the State or local government determines, using credible information avail- able to the public, engages in investment ac- tivities in Iran (determined without regard to subsection (c)) or other business activities in Iran that are identified in the measure. (2) Application of notice requirements A measure described in paragraph (1) shall be subject to the requirements of paragraphs (1) and (2) and the first sentence of paragraph (3) of subsection (d) on and after the date that is 2 years after July 1, 2010. (j) Rule of construction Nothing in this Act or any other provision of law authorizing sanctions with respect to Iran shall be construed to abridge the authority of a State to issue and enforce rules governing the safety, soundness, and solvency of a financial in- stitution subject to its jurisdiction or the busi- ness of insurance pursuant to the Act of March 9, 1945 (15 U.S.C. 1011 et seq.) (commonly known as the ‘‘McCarran-Ferguson Act’’). (Pub. L. 111–195, title II, § 202, July 1, 2010, 124 Stat. 1342; Pub. L. 112–158, title II, § 222(b), Aug. 10, 2012, 126 Stat. 1239.) TERMINATION OF SECTION For termination of section, see section 8551(a) of this title. Editorial Notes REFERENCES IN TEXT The Employee Retirement Income Security Act of 1974, referred to in subsec. (g)(1)(B), is Pub. L. 93–406, Page 2092 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 8541 1 See References in Text note below. Sept. 2, 1974, 88 Stat. 829. Title I of the Act is classified generally to subchapter I (§ 1001 et seq.) of chapter 18 of Title 29, Labor. For complete classification of this Act to the Code, see Short Title note set out under section 1001 of Title 29 and Tables. This Act, referred to in subsec. (j), is Pub. L. 111–195, July 1, 2010, 124 Stat. 1312, which enacted this chapter, amended sections 287c, 2778, and 2780 of this title, sec- tion 80a–13 of Title 15, Commerce and Trade, section 310 of Title 31, Money and Finance, and section 4315 of Title 50, War and National Defense, enacted provisions set out as notes under section 80a–13 of Title 15 and sec- tion 1701 of Title 50, and amended provisions set out as notes under section 1701 of Title 50. For complete clas- sification of this Act to the Code, see Short Title note set out under section 8501 of this title and Tables. Act of March 9, 1945, referred to in subsec. (j), is act Mar. 9, 1945, ch. 20, 59 Stat. 33, popularly known as the McCarran-Ferguson Act, which is classified generally to chapter 20 (§ 1011 et seq.) of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see Short Title note set out under section 1011 of Title 15 and Tables. AMENDMENTS 2012—Subsec. (j). Pub. L. 112–158 added subsec. (j). SUBCHAPTER III—PREVENTION OF DIVER- SION OF CERTAIN GOODS, SERVICES, AND TECHNOLOGIES TO IRAN § 8541. Definitions In this subchapter: (1) Allow The term ‘‘allow’’, with respect to the diver- sion through a country of goods, services, or technologies, means the government of the country knows or has reason to know that the territory of the country is being used for such diversion. (2) Appropriate congressional committees The term ‘‘appropriate congressional com- mittees’’ means— (A) the Committee on Banking, Housing, and Urban Affairs, the Committee on For- eign Relations, and the Select Committee on Intelligence of the Senate; and (B) the Committee on Foreign Affairs and the Permanent Select Committee on Intel- ligence of the House of Representatives. (3) Commerce Control List The term ‘‘Commerce Control List’’ means the list maintained pursuant to part 774 of the Export Administration Regulations (or any corresponding similar regulation or ruling). (4) Divert; diversion The terms ‘‘divert’’ and ‘‘diversion’’ refer to the transfer or release, directly or indirectly, of a good, service, or technology to an end- user or an intermediary that is not an author- ized recipient of the good, service, or tech- nology. (5) End-user The term ‘‘end-user’’, with respect to a good, service, or technology, means the person that receives and ultimately uses the good, service, or technology. (6) Export Administration Regulations The term ‘‘Export Administration Regula- tions’’ means subchapter C of chapter VII of title 15, Code of Federal Regulations (or any corresponding similar regulation or ruling). (7) Government The term ‘‘government’’ includes any agen- cy or instrumentality of a government. (8) Intermediary The term ‘‘intermediary’’ means a person that receives a good, service, or technology while the good, service, or technology is in transit to the end-user of the good, service, or technology. (9) International Traffic in Arms Regulations The term ‘‘International Traffic in Arms Regulations’’ means subchapter M of chapter I of title 22, Code of Federal Regulations (or any corresponding similar regulation or ruling). (10) Iran The term ‘‘Iran’’ includes the Government of Iran and any agency or instrumentality of Iran. (11) Iranian end-user The term ‘‘Iranian end-user’’ means an end- user that is the Government of Iran or a per- son in, or an agency or instrumentality of, Iran. (12) Iranian intermediary The term ‘‘Iranian intermediary’’ means an intermediary that is the Government of Iran or a person in, or an agency or instrumen- tality of, Iran. (13) State sponsor of terrorism The term ‘‘state sponsor of terrorism’’ means any country the government of which the Secretary of State has determined has re- peatedly provided support for acts of inter- national terrorism pursuant to— (A) section 4605(j)(1)(A) 1 of title 50 (or any successor thereto); (B) section 2780(d) of this title; or (C) section 2371(a) of this title. (14) United States Munitions List The term ‘‘United States Munitions List’’ means the list maintained pursuant to part 121 of the International Traffic in Arms Regula- tions (or any corresponding similar regulation or ruling). (Pub. L. 111–195, title III, § 301, July 1, 2010, 124 Stat. 1345.) TERMINATION OF SECTION For termination of section, see section 8551(a) of this title. Editorial Notes REFERENCES IN TEXT Section 4605(j)(1)(A) of title 50, referred to in par. (13)(A), was repealed by Pub. L. 115–232, div. A, title XVII, § 1766(a), Aug. 13, 2018, 132 Stat. 2232. Provisions similar to those in former section 4605(j)(1)(A) of title 50 can be found in section 4813(c)(1)(A)(i) of title 50, as enacted by Pub. L. 115–232.