S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    923
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              January 5, 2017
                                ___________
 
 Introduced  by Sens. CROCI, KAMINSKY, MARCHIONE, MURPHY, ORTT, SEWARD --
   read twice and ordered printed, and when printed to  be  committed  to
   the Committee on Finance
 
 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  2012  amending  the  state
 finance  law  and other laws 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").
   (c) On July 1, 2010, President  Barack  Obama  signed  into  law  H.R.
 2194,  the "Comprehensive Iran Sanctions, Accountability, and Divestment

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

                                                            LBD01241-01-7

 S. 923                              2

 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;
   (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;

 S. 923                              3
 
   (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 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.
   §  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.
   §  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:
   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

 S. 923                              4

 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;
   (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;

 S. 923                              5
 
   (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 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.
   § 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,
 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.