((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 prohibits 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 sanctions imposed by the United States.

((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 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 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 government under subsection (b) shall meet the following requirements:

((1)) ** Notice** The State or local government shall provide written notice to each person to which a measure is to be applied.

((2)) ** Timing** The measure shall apply to a person not earlier than the date that is 90 days after the date on which written notice is provided to the person 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 subsection (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 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 written notice to the Attorney General describing the measure.

((f)) ** Nonpreemption** A measure of a State or local government authorized under subsection (b) or (i) is not preempted 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, annuity, or endowment fund, or similar instrument, that is controlled 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 ( et seq.).29 U.S.C. 1001

((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 subsection (i), this section applies to measures adopted by a State or local government before, on, or after .July 1, 20102010-07-01

((2)) ** Notice requirements** Except as provided in subsection (i), subsections (d) and (e) apply to measures adopted by a State or local government on or after .July 1, 20102010-07-01

((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 subsection (d), except as provided in paragraph (2)) adopted by the State or local government before , that provides for the divestment of assets of the State or local government 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 available to the public, engages in investment activities in Iran (determined without regard to subsection (c)) or other business activities in Iran that are identified in the measure.July 1, 20102010-07-01

((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, 20102010-07-01

((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 institution subject to its jurisdiction or the business of insurance pursuant to the Act of ( et seq.) (commonly known as the “McCarran-Ferguson Act”).15 U.S.C. 1011March 9, 19451945-03-09