---
kind: "section"
citation: "22 U.S.C. § 8532"
title: "22"
title_heading: "Foreign Relations and Intercourse"
number: "8532"
heading: "Authority of State and local governments to divest from certain companies that invest in Iran"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/22/8532"
units:
  - "Chapter 92 — Comprehensive Iran Sanctions, Accountability, and Divestment"
  - "Subchapter II — Divestment from Certain Companies That Invest in Iran"
---

# §8532. Authority of State and local governments to divest from certain companies that invest in Iran

- (a) **Sense of Congress—** It is the sense of Congress that the United States should [support](/usc/22/7432.md?p=12) the decision of any [State or local government](/usc/22/8531.md?p=6) that for moral, prudential, or reputational reasons divests from, or prohibits the investment of assets of the [State or local government](/usc/22/8531.md?p=6) in, a [person](/usc/22/8531.md?p=4) that engages in investment activities in the [energy sector of Iran](/usc/22/8531.md?p=1), as long as [Iran](/usc/22/8531.md?p=3) 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](/usc/22/8531.md?p=6) may adopt and enforce measures that meet the requirements of [subsection (d)](#d) to divest the assets of the [State or local government](/usc/22/8531.md?p=6) from, or prohibit investment of the assets of the [State or local government](/usc/22/8531.md?p=6) in, any [person](/usc/22/8531.md?p=4) that the [State or local government](/usc/22/8531.md?p=6) determines, using credible information available to the public, engages in investment activities in [Iran](/usc/22/8531.md?p=3) described in [subsection (c)](#c).
- (c) **Investment activities described—** A [person](/usc/22/8531.md?p=4) engages in investment activities in [Iran](/usc/22/8531.md?p=3) described in this subsection if the [person](/usc/22/8531.md?p=4)—
  - (1) has an investment of $20,000,000 or more in the [energy sector of Iran](/usc/22/8531.md?p=1), including in a [person](/usc/22/8531.md?p=4) 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](/usc/22/8531.md?p=1); or
  - (2) is a [financial institution](/usc/22/8531.md?p=2) that extends $20,000,000 or more in credit to another [person](/usc/22/8531.md?p=4), for 45 days or more, if that [person](/usc/22/8531.md?p=4) will use the credit for investment in the [energy sector of Iran](/usc/22/8531.md?p=1).
- (d) **Requirements—** Any measure taken by a [State or local government](/usc/22/8531.md?p=6) under [subsection (b)](#b) shall meet the following requirements:
  - (1) **Notice—** The [State or local government](/usc/22/8531.md?p=6) shall provide written notice to each [person](/usc/22/8531.md?p=4) to which a measure is to be applied.
  - (2) **Timing—** The measure shall apply to a [person](/usc/22/8531.md?p=4) not earlier than the date that is 90 days after the date on which written notice is provided to the [person](/usc/22/8531.md?p=4) under [paragraph (1)](#d-1).
  - (3) **Opportunity for hearing—** The [State or local government](/usc/22/8531.md?p=6) shall provide an opportunity to comment in writing to each [person](/usc/22/8531.md?p=4) to which a measure is to be applied. If the [person](/usc/22/8531.md?p=4) demonstrates to the [State or local government](/usc/22/8531.md?p=6) that the [person](/usc/22/8531.md?p=4) does not engage in investment activities in [Iran](/usc/22/8531.md?p=3) described in [subsection (c)](#c), the measure shall not apply to the [person](/usc/22/8531.md?p=4).
  - (4) **Sense of Congress on avoiding erroneous targeting—** It is the sense of Congress that a [State or local government](/usc/22/8531.md?p=6) should not adopt a measure under [subsection (b)](#b) with respect to a [person](/usc/22/8531.md?p=4) unless the [State or local government](/usc/22/8531.md?p=6) has made every effort to avoid erroneously targeting the [person](/usc/22/8531.md?p=4) and has verified that the [person](/usc/22/8531.md?p=4) engages in investment activities in [Iran](/usc/22/8531.md?p=3) described in [subsection (c)](#c).
- (e) **Notice to Department of Justice—** Not later than 30 days after adopting a measure pursuant to [subsection (b)](#b), a [State or local government](/usc/22/8531.md?p=6) shall submit written notice to the Attorney General describing the measure.
- (f) **Nonpreemption—** A measure of a [State or local government](/usc/22/8531.md?p=6) authorized under subsection [(b)](#b) or [(i)](#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)](#g-1-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](/usc/22/8531.md?p=6).
    - (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](/usc/29/1001.md) et seq.).
  - (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)](#h-2) or [subsection (i)](#i), this section applies to measures adopted by a [State or local government](/usc/22/8531.md?p=6) before, on, or after July 1, 2010.
  - (2) **Notice requirements—** Except as provided in [subsection (i)](#i), subsections [(d)](#d) and [(e)](#e) apply to measures adopted by a [State or local government](/usc/22/8531.md?p=6) on or after July 1, 2010.
- (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](/usc/22/8531.md?p=6) may enforce a measure (without regard to the requirements of [subsection (d)](#d), except as provided in [paragraph (2)](#i-2)) adopted by the [State or local government](/usc/22/8531.md?p=6) before July 1, 2010, that provides for the divestment of assets of the [State or local government](/usc/22/8531.md?p=6) from, or prohibits the investment of the assets of the [State or local government](/usc/22/8531.md?p=6) in, any [person](/usc/22/8531.md?p=4) that the [State or local government](/usc/22/8531.md?p=6) determines, using credible information available to the public, engages in investment activities in [Iran](/usc/22/8531.md?p=3) (determined without regard to [subsection (c)](#c)) or other business activities in [Iran](/usc/22/8531.md?p=3) that are identified in the measure.
  - (2) **Application of notice requirements—** A measure described in [paragraph (1)](#i-1) shall be subject to the requirements of paragraphs [(1)](#i-1) and [(2)](#i-2) and the first sentence of [paragraph (3)](#d-3) of subsection (d) on and after the date that is 2 years after July 1, 2010.
- (j) **Rule of construction—** Nothing in this Act or any other provision of law authorizing sanctions with respect to [Iran](/usc/22/8531.md?p=3) shall be construed to abridge the authority of a [State](/usc/22/8511.md?p=9) to issue and enforce rules governing the safety, soundness, and solvency of a [financial institution](/usc/22/8531.md?p=2) subject to its jurisdiction or the business of insurance pursuant to the Act of March 9, 1945 ([15 U.S.C. 1011](/usc/15/1011.md) et seq.) (commonly known as the “McCarran-Ferguson Act”).

## Source credit

(Pub. L. 111–195, title II, § 202, July 1, 2010, 124 Stat. 1342; Pub. L. 112–158, title II, § 222(b), Aug. 10, 2012, 126 Stat. 1239.)

## Notes

### Termination of Section

For termination of section, see section 8551(a) of this title.

### Editorial Notes

### References in Text

The Employee Retirement Income Security Act of 1974, referred to in subsec. (g)(1)(B), is Pub. L. 93–406, Sept. 2, 1974, 88 Stat. 829. Title I of the Act is classified generally to subchapter I (§ 1001 et seq.) of chapter 18 of Title 29, Labor. For complete classification of this Act to the Code, see Short Title note set out under section 1001 of Title 29 and Tables.

This Act, referred to in subsec. (j), is Pub. L. 111–195, July 1, 2010, 124 Stat. 1312, which enacted this chapter, amended sections 287c, 2778, and 2780 of this title, section 80a–13 of Title 15, Commerce and Trade, section 310 of Title 31, Money and Finance, and section 4315 of Title 50, War and National Defense, enacted provisions set out as notes under section 80a–13 of Title 15 and section 1701 of Title 50, and amended provisions set out as notes under section 1701 of Title 50. For complete classification of this Act to the Code, see Short Title note set out under section 8501 of this title and Tables.

Act of March 9, 1945, referred to in subsec. (j), is act Mar. 9, 1945, ch. 20, 59 Stat. 33, popularly known as the McCarran-Ferguson Act, which is classified generally to chapter 20 (§ 1011 et seq.) of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see Short Title note set out under section 1011 of Title 15 and Tables.

### Amendments

2012—Subsec. (j). Pub. L. 112–158 added subsec. (j).