Iran Sanctions Enabling Act of 2009 - (Sec. 3) States that it is the policy of the United States to support the decision of state and local governments and educational institutions to divest from, and to prohibit the investment of assets they control in, persons that the have investments of more than $20 million in Iran's energy sector.
Authorizes a state or local government to adopt and enforce measures to divest its assets from, or prohibit their investment in, any person that the state or local government determines, using credible information available to the public, engages in certain investment activities in Iran. Specifies such activities as: (1) the investment of $20 million or more in Iran's energy sector; or (2) provision of oil or liquefied natural gas tankers, or products used to construct or maintain pipelines used to transport oil or liquefied natural gas, for that energy sector. Authorizes divestment, as well, from any financial institution which extend $20 million or more in credit to another person, for 45 days or more, if that person will use the credit to invest in Iran's energy sector.
Expresses the sense of Congress that a state or local government should not adopt such measures against such a person unless it has made every effort to avoid erroneously targeting the person and has verified that such person engages in such investment activities.
Declares that any measure of a state or local government authorized under this Act is not preempted by any federal law or regulation.
(Sec. 4) Amends the Investment Company Act of 1940 to shield any registered investment company from civil, criminal, or administrative action based upon its divesting from, or avoiding investing in, securities issued by persons that have invested in Sudan or in Iran.
(Sec. 5) Amends the Employee Retirement Income Security Act of 1974 (ERISA) to shield from treatment as breaching a fiduciary duty any person divesting employee benefit plan assets from, or avoiding investing plan assets in, persons that have engaged in such investment activities in Iran.
(Sec. 7) Terminates this Act 30 days after the President certifies to Congress that the government of Iran has ceased: (1) providing support for acts of international terrorism and no longer satisfies the requirements for designation as a state-sponsor of terrorism; or (2) the pursuit, acquisition, and development of nuclear, biological, and chemical weapons and ballistic missiles and ballistic missile launch technology.
[Congressional Bills 111th Congress]
[From the U.S. Government Printing Office]
[H.R. 1327 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 1327
To authorize State and local governments to direct divestiture from,
and prevent investment in, companies with investments of $20,000,000 or
more in Iran's energy sector, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 5, 2009
Mr. Frank of Massachusetts (for himself, Mr. Berman, Mr. Sherman, and
Mr. Meeks of New York) introduced the following bill; which was
referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To authorize State and local governments to direct divestiture from,
and prevent investment in, companies with investments of $20,000,000 or
more in Iran's energy sector, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Iran Sanctions Enabling Act of
2009''.
SEC. 2. FINDINGS.
The Congress finds as follows:
(1) There is an increasing interest by States, local
governments, educational institutions, and private institutions
to seek to disassociate themselves from companies that directly
or indirectly support the Government of Iran's efforts to
achieve a nuclear weapons capability.
(2) Policy makers and fund managers may find moral,
prudential, or reputational reasons to divest from companies
that accept the business risk of operating in countries that
are subject to international economic sanctions or that have
business relationships with countries, governments, or entities
with which any United States company would be prohibited from
dealing because of economic sanctions imposed by the United
States.
SEC. 3. AUTHORITY OF STATE AND LOCAL GOVERNMENTS TO DIVEST FROM CERTAIN
COMPANIES INVESTED IN IRAN'S ENERGY SECTOR.
(a) Statement of Policy.--It is the policy of the United States to
support the decision of State governments, local governments, and
educational institutions to divest from, and to prohibit the investment
of assets they control in, persons that have investments of more than
$20,000,000 in Iran's energy sector.
(b) Authority To Divest.--Notwithstanding any other provision of
law, a State or local government may adopt and enforce measures that
meet the requirements of subsection (d) to divest the assets of the
State or local government from, or prohibit investment of the assets of
the State or local government in, any person that the State or local
government determines, using credible information available to the
public, engages in investment activities in Iran described in
subsection (c).
(c) Investment Activities in Iran Described.--A person engages in
investment activities in Iran described in this subsection if the
person--
(1) has an investment of $20,000,000 or more--
(A) in the energy sector of Iran; or
(B) 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 in 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 to invest in the energy sector in
Iran.
(d) Requirements.--The requirements referred to in subsection (b)
that a measure taken by a State or local government must meet are the
following:
(1) Notice.--The State or local government shall provide
written notice to each person to whom the State or local
government, as the case may be, intends to apply the measure,
of such intent.
(2) Timing.--The measure shall apply to a person not
earlier than the date that is 90 days after the date on which
the person receives the written notice required by paragraph
(1).
(3) Opportunity for hearing.--The State or local government
shall provide each person referred to in paragraph (1) with an
opportunity to demonstrate to the State or local government, as
the case may be, that the person does not engage in investment
activities in Iran described in subsection (c). If the person
demonstrates to the State or local government that the person
does not engage in investment activities in Iran described in
subsection (c), the measure shall not apply to the person.
(4) Sense of the congress on avoiding erroneous
targeting.--It is the sense of the 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 engages in
investment activities in Iran described in subsection (c).
(e) Notice to Department of Justice.--Not later than 30 days after
adopting a measure pursuant to subsection (b), a State or local
government shall submit to the Attorney General of the United States a
written notice which describes the measure.
(f) Nonpreemption.--A measure of a State or local government
authorized under subsection (b) is not preempted by any Federal law or
regulation.
(g) Definitions.--In this section:
(1) Investment.--The ``investment'' of assets, with respect
to a State or local government, includes--
(A) a commitment or contribution of assets;
(B) a loan or other extension of credit; or
(C) the entry into or renewal of a contract for
goods or services.
(2) Assets.--
(A) In general.--Except as provided in subparagraph
(B), the term ``assets'' refers to public monies and
includes any pension, retirement, annuity, or endowment
fund, or similar instrument, that is controlled
directly or indirectly by a State or local government.
(B) Exception.--The term ``assets'' does not
include employee benefit plans covered by title I of
the Employee Retirement Income Security Act of 1974 (29
U.S.C. 1001 et seq.).
(h) Effective Date.--
(1) In general.--Except as provided in paragraph (2), this
section shall apply to measures adopted by a State or local
government before, on, or after the date of the enactment of
this Act.
(2) Notice requirements.--Subsections (d) and (e) apply to
measures adopted by a State or local government on or after the
date of the enactment of this Act.
SEC. 4. SAFE HARBOR FOR CHANGES OF INVESTMENT POLICIES BY ASSET
MANAGERS.
Section 13(c)(1) of the Investment Company Act of 1940 (15 U.S.C.
80a-13(c)(1)) is amended by inserting before the period the following:
``or engage in investment activities in Iran described in section 3(c)
of the Iran Sanctions Enabling Act of 2009''.
SEC. 5. SENSE OF CONGRESS REGARDING CERTAIN ERISA PLAN INVESTMENTS.
It is the sense of Congress that a fiduciary of an employee benefit
plan, as defined in section 3(3) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1002(3)), may divest plan assets from,
or avoid investing plan assets in, any person the fiduciary determines
engages in investment activities in Iran described in section 3(c) of
this Act, without breaching the responsibilities, obligations, or
duties imposed upon the fiduciary by section 404 of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1104), if--
(1) the fiduciary makes such determination using credible
information that is available to the public; and
(2) such divestment or avoidance of investment is conducted
in accordance with section 2509.94-1 of title 29, Code of
Federal Regulations (as in effect on the day before the date of
the enactment of this Act).
SEC. 6. DEFINITIONS.
In this title:
(1) Energy sector.--The term ``energy sector'' refers to
activities to develop petroleum or natural gas resources or
nuclear power.
(2) Financial institution.--The term ``financial
institution'' has the meaning given that term in section 14(5)
of the Iran Sanctions Act of 1996 (Public Law 104-172; 50
U.S.C. 1701 note).
(3) Iran.--The term ``Iran'' includes any agency or
instrumentality of Iran.
(4) Person.--The term ``person'' means--
(A) a natural person, corporation, company,
business association, partnership, society, trust, or
any other nongovernmental entity, organization, or
group;
(B) 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))); and
(C) any successor, subunit, parent company, or
subsidiary of any entity described in subparagraph (A)
or (B).
(5) State.--The term ``State'' means each of the several
States, the District of Columbia, the Commonwealth of Puerto
Rico, the United States Virgin Islands, Guam, American Samoa,
and the Commonwealth of the Northern Mariana Islands.
(6) State or local government.--The term ``State or local
government'' includes--
(A) any State and any agency or instrumentality
thereof;
(B) any local government within a State, and any
agency or instrumentality thereof;
(C) any other governmental instrumentality; and
(D) any public institution of higher education
within the meaning of the Higher Education Act of 1965
(20 U.S.C. 1001 et seq.).
SEC. 7. SUNSET.
This Act shall terminate 30 days after the date on which the
President has certified to the Congress that--
(1) the Government of Iran has ceased providing support for
acts of international terrorism and no longer satisfies the
requirements for designation as a state-sponsor of terrorism
for purposes of section 6(j) of the Export Administration Act
of 1979, section 620A of the Foreign Assistance Act of 1961,
section 40 of the Arms Export Control Act, or any other
provision of law; or
(2) Iran has ceased the pursuit, acquisition, and
development of nuclear, biological, and chemical weapons and
ballistic missiles and ballistic missile launch technology.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Referred to the Subcommittee on International Monetary Policy and Trade.
Subcommittee Hearings Held.
Subcommittee on International Monetary Policy and Trade Discharged.
Committee Consideration and Mark-up Session Held.
Ordered to be Reported (Amended) by Voice Vote.
Mr. Frank (MA) moved to suspend the rules and pass the bill, as amended.
Considered under suspension of the rules. (consideration: CR H11191-11195)
DEBATE - The House proceeded with forty minutes of debate on H.R. 1327.
DEBATE - The House resumed debate on H.R. 1327.
At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line
Considered as unfinished business. (consideration: CR H11351-11352)
Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 414 - 6 (Roll no. 776).(text: CR 10/13/2009 H11191-11192)
Roll Call #776 (House)On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 414 - 6 (Roll no. 776). (text: CR 10/13/2009 H11191-11192)
Roll Call #776 (House)Motion to reconsider laid on the table Agreed to without objection.
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.