senate Bill S5083

Signed By Governor
2013-2014 Legislative Session

Relates to investments in foreign states sponsoring terrorism

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Archive: Last Bill Status Via A6855 - Signed by Governor


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Nov 13, 2013 signed chap.481
Nov 01, 2013 delivered to governor
Jun 21, 2013 returned to assembly
passed senate
3rd reading cal.1610
substituted for s5083
Jun 21, 2013 substituted by a6855
ordered to third reading cal.1610
committee discharged and committed to rules
May 08, 2013 referred to insurance

Votes

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Co-Sponsors

S5083 - Bill Details

See Assembly Version of this Bill:
A6855
Law Section:
Insurance Law
Laws Affected:
Add ยง1415, Ins L

S5083 - Bill Texts

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Relates to investments in foreign states sponsoring terrorism.

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BILL NUMBER:S5083

TITLE OF BILL: An act to amend the insurance law, in relation to
investments in foreign states sponsoring terrorism

PURPOSE: The purpose of this bill is to prohibit investments made by
insurance companies in certain foreign companies who do business in
Iran from being considered an admitted asset.

SUMMARY OF PROVISIONS: This bill would establish that investments made
by domestic insurance companies in companies that invest in the
Iranian energy sector are non-admitted assets. This bill would require
that on or before December 30, 2013, and annually thereafter, insurers
determine what investments, transfers, or other transactions they have
made in the past calendar year with companies included on the list of
companies that invest in the Iranian energy sector maintained by the
Office of General Services in accordance with subdivision three of
section 165-a of the NYS Finance Law. On March 1, 2014, and annually
thereafter, insurers would be required to provide the Department of
Financial Services with the list of investments.

JUSTIFICATION: In 2012, New York State enacted the Iranian Divestment
Act, which prohibits entities that invest in the Iranian energy sector
from obtaining state and local government contracts (Chapter 1 of the
Laws of 2012). This bill would build upon that precedent by
prohibiting domestic insurance companies from including investments in
such entitles as admitted assets. Currently, domestic insurance
companies may have in their portfolios shares in foreign entities that
invest in Iran. New York State may regulate the investments of
insurance companies in this state in order to protect citizens who may
purchase polices and thus limiting their exposure to undue risks.
Prohibiting insurers from investing in such entities is sound public
policy, and it ensures that the investments of domestic insurers are
financially sound.

LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: None noted.

EFFECTIVE DATE: 90 days after enactment.

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

                                  5083

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               May 8, 2013
                               ___________

Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
  printed to be committed to the Committee on Insurance

AN ACT to amend the insurance law, in relation to investments in foreign
  states sponsoring terrorism

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT 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.
  S 2. The insurance law is amended by adding a new section 1415 to read
as follows:
  S  1415.  INVESTMENTS OF DOMESTIC INSURERS IN PERSONS INCLUDED ON LIST
OF PERSONS ENGAGED IN INVESTMENT ACTIVITIES IN IRAN TREATED AS NONADMIT-
TED ASSETS. 1. AS USED IN THIS SECTION, THE FOLLOWING DEFINITIONS  SHALL
APPLY:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10320-02-3

S. 5083                             2

  (A)  "IRAN"  SHALL  HAVE  THE  SAME  DEFINITION AS USED IN SECTION ONE
HUNDRED SIXTY-FIVE-A OF THE STATE FINANCE LAW.
  (B)  "PERSON"  SHALL  HAVE  THE SAME DEFINITION AS USED IN SECTION ONE
HUNDRED SIXTY-FIVE-A OF THE STATE FINANCE LAW.
  (C) "INVESTMENT" SHALL MEAN ANY  INVESTMENT  PERMITTED  UNDER  SECTION
FOURTEEN HUNDRED FOUR OR FOURTEEN HUNDRED FIVE OF THIS ARTICLE.
  2.  INVESTMENTS BY A DOMESTIC INSURER IN PERSONS WHICH ARE INCLUDED ON
THE LIST OF PERSONS CREATED BY THE OFFICE OF GENERAL  SERVICES  PURSUANT
TO   PARAGRAPH   (B)   OF  SUBDIVISION  THREE  OF  SECTION  ONE  HUNDRED
SIXTY-FIVE-A OF THE STATE FINANCE LAW SHALL BE  TREATED  AS  NONADMITTED
ASSETS.
  3. ON OR BEFORE DECEMBER THIRTIETH, TWO THOUSAND THIRTEEN, AND ANNUAL-
LY  THEREAFTER,  THE  INSURER SHALL DETERMINE WHAT INVESTMENTS IT HAD IN
THE PAST CALENDAR YEAR, INCLUDING ANY TRANSFERS OR  OTHER  TRANSACTIONS,
IN  PERSONS  WHICH  ARE  INCLUDED  ON THE LIST OF PERSONS CREATED BY THE
OFFICE OF GENERAL SERVICES PURSUANT  TO  PARAGRAPH  (B)  OF  SUBDIVISION
THREE OF SECTION ONE HUNDRED SIXTY-FIVE-A OF THE STATE FINANCE LAW.
  4. ON MARCH FIRST, TWO THOUSAND FOURTEEN, AND ANNUALLY THEREAFTER, THE
INSURER  SHALL  PROVIDE THE DEPARTMENT WITH A LIST OF INVESTMENTS IT HAD
IN THE PAST CALENDAR YEAR,  INCLUDING  ANY  TRANSFERS  OR  OTHER  TRANS-
ACTIONS,  IN  PERSONS  INCLUDED  ON  THE  LIST OF PERSONS CREATED BY THE
OFFICE OF GENERAL  SERVICES  DESCRIBED  IN  SUBDIVISION  THREE  OF  THIS
SECTION,  INCLUDING, BUT NOT LIMITED TO, THE ISSUER, BY NAME, OF ALL THE
STOCK, BONDS, SECURITIES, AND OTHER EVIDENCE OF INDEBTEDNESS.
  5. THIS SECTION SHALL CEASE TO BE OPERATIVE IF BOTH OF  THE  FOLLOWING
APPLY:
  (A)  IRAN IS REMOVED FROM THE UNITED STATES DEPARTMENT OF STATE'S LIST
OF COUNTRIES THAT HAVE BEEN DETERMINED TO REPEATEDLY PROVIDE SUPPORT FOR
ACTS OF INTERNATIONAL TERRORISM.
  (B) PURSUANT TO THE APPROPRIATE FEDERAL STATUTE, THE PRESIDENT OF  THE
UNITED  STATES  DETERMINES AND CERTIFIES TO THE APPROPRIATE COMMITTEE OF
THE CONGRESS OF THE UNITED STATES THAT IRAN HAS CEASED  ITS  EFFORTS  TO
DESIGN,  DEVELOP,  MANUFACTURE, OR ACQUIRE A NUCLEAR EXPLOSIVE DEVICE OR
RELATED MATERIALS AND TECHNOLOGY.
  S 3. If any clause, sentence, paragraph, section or part of  this  act
shall  be adjudged by any court of competent jurisdiction to be invalid,
such judgment shall not affect, impair or invalidate the remainder ther-
eof, but shall be confined in its operation  to  the  clause,  sentence,
paragraph,  section or part thereof directly involved in the controversy
in which such judgment shall have been rendered.
  S 4. This act shall take effect on the ninetieth day  after  it  shall
have  become  a  law; provided, however, that effective immediately, the
addition, amendment, and/or repeal of any rule or  regulation  necessary
for  the implementation of this act on its effective date are authorized
and directed to be made and completed on or before such effective date.

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