This bill amends the existing law regarding investment activities in Iran by lowering the threshold for defining persons or entities engaged in such activities from $20 million to $10 million. Specifically, it states that a person engages in investment activities in Iran if they provide goods or services, or if financial institutions extend credit of $10 million or more in the energy sector of Iran. This change aims to tighten restrictions on public contracts awarded by state agencies, local contracting units, boards of education, or county colleges to those engaged in investment activities in Iran's energy sector, thereby aligning with federal sanctions policies.

The motivation behind this legislative change is to enhance efforts to prevent Iran from funding international terrorism and developing weapons of mass destruction through its energy sector. The bill highlights the ongoing threats posed by Iran, including its support for military conflicts and attacks on commercial vessels, as well as its provision of weapons to adversaries like Russia. By adopting a lower threshold for investment activities, the bill seeks to ensure that state and local governments do not inadvertently support entities that contribute to these destabilizing actions.

Statutes affected:
Introduced: 52:32-56