H. R IN THE HOUSE OF REPRESENTATIVES
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1 I 11TH CONGRESS D SESSION H. R. 1 To authorize State and local governments to divest from entities that engage in commerce or investment-related boycott, divestment, or sanctions activities targeting Israel, and for other purposes. IN THE HOUSE OF REPRESENTATIVES FEBRUARY 10, 016 Mr. DOLD (for himself and Mr. VARGAS) introduced the following bill; which was referred to the Committee on Financial Services A BILL To authorize State and local governments to divest from entities that engage in commerce or investment-related boycott, divestment, or sanctions activities targeting Israel, and for other purposes. 1 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 Combating BDS Act of 016. SSpencer on DSKSPTVN1PROD with BILLS VerDate Sep : Feb 11, 016 Jkt 0900 PO Frm Fmt 66 Sfmt 601 E:\BILLS\H1.IH H1
2 SSpencer on DSKSPTVN1PROD with BILLS HR 1 IH VerDate Sep : Feb 11, 016 Jkt 0900 PO Frm 0000 Fmt 66 Sfmt 601 E:\BILLS\H1.IH H1 SEC.. AUTHORITY OF STATE AND LOCAL GOVERNMENTS TO DIVEST FROM ENTITIES THAT ENGAGE IN COMMERCE OR INVESTMENT-RELATED BOY- COTTS, DIVESTMENTS, OR SANCTIONS AC- TIVITIES TARGETING ISRAEL. (a) AUTHORITY TO DIVEST. Notwithstanding any other provision of law, a State or local government may adopt and enforce measures that meet the notice requirement of subsection (b) to divest the assets of the State or local government from, or prohibit investment of the assets of the State or local government in (1) an entity that the State or local government determines, using credible information available to the public, engages in a commerce or investment-related boycott, divestment, or sanctions activity targeting Israel; () a successor entity or subunit of an entity described in paragraph (1); or () an entity that owns or controls, is owned or controlled by, or is under common ownership or control with, an entity described in paragraph (1). (b) NOTICE REQUIREMENT. (1) IN GENERAL. A State or local government shall provide written notice to each entity to which a measure taken by the State or local government under subsection (a) is to be applied.
3 SSpencer on DSKSPTVN1PROD with BILLS 1 () RULE OF CONSTRUCTION. Nothing in paragraph (1) shall be construed to prohibit a State or local government from taking additional steps to provide due process with respect to each entity de- scribed in paragraph (1) for purposes of carrying 6 out this section. 7 (c) NONPREEMPTION. A measure of a State or local 8 government authorized under subsection (a) is not pre- 9 empted by any Federal law or regulation. 10 (d) EFFECTIVE DATE. This section applies to meas- 11 ures adopted by a State or local government before, on, 1 or after the date of the enactment of this Act. 1 (e) RULE OF CONSTRUCTION. Nothing in this sec- 1 tion shall be construed to abridge the authority of a State 1 to issue and enforce rules governing the safety, soundness, 16 and solvency of a financial institution subject to its juris- 17 diction or the business of insurance pursuant to the Act 18 of March 9, 19 (9 Stat., chapter 0; 1 U.S.C et seq.) (commonly known as the McCarran-Fer- 0 guson Act ). 1 (f) DEFINITIONS. In this section: (1) ASSETS. (A) IN GENERAL. Except as provided in subparagraph (B), the term assets means any pension, retirement, annuity, or endowment HR 1 IH VerDate Sep : Feb 11, 016 Jkt 0900 PO Frm 0000 Fmt 66 Sfmt 601 E:\BILLS\H1.IH H1
4 SSpencer on DSKSPTVN1PROD with BILLS 1 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 Se- 6 curity Act of 197 (9 U.S.C et seq.) () BOYCOTT, DIVESTMENT, OR SANCTIONS AC- TIVITY TARGETING ISRAEL. The term boycott, divestment, or sanctions activity targeting Israel means any activity that is intended to penalize, inflict economic harm on, or otherwise limit commercial relations with Israel or persons doing business in Israel or in Israeli-controlled territories, for purposes of coercing political action by, or imposing policy positions on, the Government of Israel. () ENTITY. The term entity includes (A) any corporation, company, business association, partnership, or trust; and (B) any governmental entity, or instrumentality of a government, including a multilateral development institution (as defined in section 1701(c)() of the International Financial Institutions Act ( U.S.C. 6r(c)())). () INVESTMENT. The term investment includes HR 1 IH VerDate Sep : Feb 11, 016 Jkt 0900 PO Frm 0000 Fmt 66 Sfmt 601 E:\BILLS\H1.IH H1
5 SSpencer on DSKSPTVN1PROD with BILLS 1 (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. 6 () STATE. The term State means each of 7 the several States, the District of Columbia, the 8 Commonwealth of Puerto Rico, the Commonwealth 9 of the Northern Mariana Islands, American Samoa, 10 Guam, the United States Virgin Islands, and any 11 other territory or possession of the United States. 1 (6) STATE OR LOCAL GOVERNMENT. The term 1 State or local government includes 1 (A) any State and any agency or instru- 1 mentality thereof; 16 (B) any local government within a State, 17 and any agency or instrumentality thereof; and 18 (C) any other governmental instrumen- 19 tality of a State or locality. 0 1 SEC.. SAFE HARBOR FOR CHANGES OF INVESTMENT POLICIES BY ASSET MANAGERS. Section 1(c)(1) of the Investment Company Act of 190 (1 U.S.C. 80a 1(c)(1)) is amended (1) in subparagraph (A), by striking ; or and inserting a semicolon; HR 1 IH VerDate Sep : Feb 11, 016 Jkt 0900 PO Frm 0000 Fmt 66 Sfmt 601 E:\BILLS\H1.IH H1
6 1 6 6 () in subparagraph (B), by striking the period at the end and inserting ; or ; and () by adding at the end the following: (C) engage in boycott, divestment, or sanctions activity targeting Israel described in section of the Combating BDS Act of Æ SSpencer on DSKSPTVN1PROD with BILLS HR 1 IH VerDate Sep : Feb 11, 016 Jkt 0900 PO Frm Fmt 66 Sfmt 601 E:\BILLS\H1.IH H1
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