This Act may be cited as the “State Sanctions Against Iranian Terrorism Act”.

(a) Additional authority.—Section 202 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8532) is amended as follows:

(1) Subsection (a) is amended—

(A) by striking “should support” and inserting “should not interfere with”; and

(B) by striking “in the energy sector of Iran” and all that follows through “United States” and inserting “in the business sector in Iran, or prohibits or limits any person from engaging in investment activities in the business sector of Iran, until such time as all Federal laws that either expressly authorize or require the imposition of sanctions by the Federal Government on Iran are rescinded by an Act or Acts of Congress”.

(2) Subsection (b) is amended—

(A) by amending the subsection heading to read as follows:

“(b) Authority To restrict investment in Iran.—”;

(B) by striking “may adopt and enforce measures that meet” and inserting “may—

“(1) adopt and enforce measures—

“(A) that meet”;

(C) by striking “subsection (c).” and inserting “subsection (c); or”; and

(D) by adding at the end the following:

“(B) to prohibit or limit any person from engaging in investment activities in Iran described in subsection (c); and

“(2) enter into interstate compacts regarding measures described in paragraph (1).

Enforcement of measures under this subsection may include the imposition of disclosure and other transparency requirements to carry out paragraph (1).”.

(3) Subsection (c) is amended—

(A) in paragraph (1)—

(i) by striking “$20,000,000 or more in the energy sector” and inserting “$10,000,000 or more—

“(A) in the energy sector”; and

(ii) by adding at the end the following:

“(B) in any other business enterprise in Iran, including an entity that is owned or controlled by the Government of Iran; or”; and

(B) in paragraph (2)—

(i) by striking “$20,000,000” and inserting “$10,000,000”; and

(ii) by adding after “energy sector of Iran” the following: “or otherwise in a business enterprise in Iran, including an entity that is owned or controlled by the Government of Iran”.

(4) Subsection (f) is amended to read as follows:

“(f) Nonpreemption; no conflict with U.S. Foreign and International Commerce Policy.—A measure of a State or local government authorized under subsection (b), (i), or (j)—

“(1) is authorized and not preempted by any Federal law or regulation, or any policy, agreement, or exercise of waiver authority of the executive branch; and

“(2) is consistent with United States Federal policy, including United States foreign policy.”.

(5) Subsection (g) is amended by adding at the end the following:

“(3) OWN OR CONTROL.—An entity is ‘owned or controlled’ by the Government of Iran if the Government of Iran—

“(A) holds more than 20 percent of the equity interest by vote or value in the entity;

“(B) has the right or ability to elect a majority of seats on the board of directors of the entity; or

“(C) otherwise controls the actions, policies, or personnel decisions of the entity.”.

(6) Subsection (h) is amended—

(A) in paragraph (1), by striking “or subsection (i)” and inserting “and subsections (i) and (j)”; and

(B) in paragraph (2), by striking “subsection (i)” and inserting “subsections (i) and (j)”.

(7) Subsection (i) is amended by adding at the end the following:

“(3) APPLICABILITY OF PRIOR PROVISIONS.—Paragraphs (1) and (2) apply with respect to this section as in effect on the day before the effective date of the State Sanctions Against Iranian Terrorism Act”..”.

(8) Section 202 is further amended—

(A) by redesignating subsection (j) as subsection (k); and

(B) by inserting after subsection (i) the following:

“(j) Applicability.—

“(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 the date of the enactment of the State Sanctions Against Iranian Terrorism Act (other than a measure covered by subsection (i)) that—

“(A) 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; or

“(B) prohibits or limits any person from engaging in investment activities in Iran described in subsection (c).

“(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 the date of the enactment of the State Sanctions Against Iranian Terrorism Act”..”.

(b) Congressional resolution of disapproval of presidential certification relating to sunset of Act.—Section 401(a) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 855(a)) is amended—

(1) by striking “The provisions of this Act” and inserting the following:

“(1) IN GENERAL.—Subject to paragraph (2), the provisions of this Act”;

(2) by striking “(1) the Government of Iran” and inserting “(A) the Government of Iran” and moving the text of subparagraph (A) (as redesignated) 2 ems to the right;

(3) by striking “(A) section 6(j)(1)(A)” and inserting “(i) section 6(j)(1)(A)” and moving the text of clause (i) (as redesignated) 2 ems to the right;

(4) by striking “(B) section 40(d)” and inserting “(ii) section 40(d)” and moving the text of clause (ii) (as redesignated) 2 ems to the right;

(5) by striking “(C) section 620A(a)” and inserting “(iii) section 620A(a)” and moving the text of clause (iii) (as redesignated) 2 ems to the right;

(6) by striking “(2) Iran has ceased” and inserting “(B) Iran has ceased”; and

(7) by adding at the end the following:

“(2) CONGRESSIONAL RESOLUTION OF DISAPPROVAL WITH RESPECT TO SUNSET OF SECTION 202.—

“(A) IN GENERAL.—Section 202 shall not terminate pursuant to a certification of the President submitted to Congress under subsection (a) if Congress, not later than 60 days after the date on which the President submits such certification, enacts a joint resolution disapproving such certification.

“(B) EXPEDITED PROCEDURES.—A joint resolution described in subparagraph (A) and introduced not later than 60 days after the date on which the President submits a certification under subsection (a) shall be considered in the Senate and the House of Representatives in accordance with paragraphs (3) through (7) of section 8066(c) of the Department of Defense Appropriations Act (as contained in Public Law 98–473), except that references in such paragraphs to the Committees on Appropriations of the House of Representatives and the Senate shall be deemed to be references to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, respectively.”.

(c) Conforming amendments.—

(1) The heading for title II of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8531 et seq.) is amended to read as follows:

(2) The heading for section 202 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8532) is amended to read as follows:

(3) The table of contents of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8501 et seq.) is amended—

(A) by amending the item relating to title II to read as follows:

and

(B) by amending the item relating to section 202 to read as follows:

“Sec. 202. Authority of State and local governments to restrict investment activities in Iran.”.

The amendments made by this Act shall apply to measures adopted by a State or local government on or after the date of the enactment of this Act, except as provided in section 202(j) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010, as amended by this Act.