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A1280
ASSEMBLY, No. 1280
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblyman MICHAEL INGANAMORT
District 24 (Morris, Sussex and Warren)
Assemblyman ALEXANDER "AVI" SCHNALL
District 30 (Monmouth and Ocean)
Co-Sponsored by:
Assemblyman Myhre and Assemblywoman Fantasia
SYNOPSIS
���� Revises definition of persons engaging in investment
activities in Iran.
CURRENT VERSION OF TEXT
���� Introduced Pending Technical Review by Legislative
Counsel.
��
An Act
revising the definition of persons engaging in
investment activities in Iran for certain public contracts and amending
P.L.2012, c.25.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� Section 2 of P.L.2012,
c.25 (C.52:32-56) is amended to read as follows:
���� 2.��� As used in this act:
���� a.���� "State
agency" means any of the principal departments in the Executive Branch of
the State government, and any division, board, bureau, office, commission or
other instrumentality within or created by such department, the Legislature of
the State and any office, board, bureau or commission within or created by the
Legislative Branch, and any independent State authority, commission,
instrumentality or agency which is authorized by law to award public contracts.
���� b.��� "Energy
sector" of Iran means activities to develop, invest in, explore for,
refine, transfer, purchase or sell petroleum, gasoline, or other refined
petroleum products, or natural gas, liquefied natural gas resources or nuclear
power in Iran.
���� c.���� "Financial
institution" means the term as used in Section 14 of the Iran Sanctions
Act of 1996, Section 14 of Pub.L.104-172 (50 U.S.C. 1701 note).
���� d.��� "Iran" means
the government of Iran, and includes the territory of Iran and any other
territory or marine area, including the exclusive economic zone and continental
shelf, over which the government of Iran claims sovereignty, sovereign rights,
or jurisdiction, provided that the government of Iran exercises partial or
total control over the area or derives a benefit from economic activity in the
area pursuant to international arrangements.
���� e.���� "Person or
entity" means any of the following:
���� (1)�� A natural person,
corporation, company, limited partnership, limited liability partnership,
limited liability company, business association, sole proprietorship, joint
venture, partnership, society, trust, or any other nongovernmental entity,
organization, or group.
���� (2)�� Any governmental entity
or instrumentality of a government, including a multilateral development
institution, as defined in Section 1701(c)(3) of the International Financial
Institutions Act, 22 U.S.C. 262r(c)(3).
���� (3)�� Any parent, successor,
subunit, direct or indirect subsidiary, or any entity under common ownership or
control with, any entity described in paragraph (1) or (2).
���� f.���� For the purposes of
this act, a person engages in investment activities in Iran, if:
���� the person provides goods or
services of
[
$20,000,000
or
]
more
than $0
in the energy sector of Iran, including a person that
provides oil or liquefied natural gas tankers, or products used to construct or
maintain pipelines used to transport oil or liquefied natural gas, for the
energy sector of Iran; or
���� the person is a financial
institution that extends
[
$20,000,000
or
]
more
than $0
in credit to another person, for 45 days or more, if that
person will use the credit to provide goods or services in the energy sector in
Iran and is identified on a list created pursuant to subsection b. of section 3
of this act as a person engaging in investment activities in Iran as described
in subsection a. of section 3 of this act.
���� The State Treasurer shall
adopt regulations that reduce the amounts provided for in this subsection if
the State Treasurer determines that such change is permitted or required under
Section 202 of the Comprehensive Iran Sanctions, Accountability, and Divestment
Act of 2010.
(cf: P.L.2012, c.25, s.2)
���� 2.� This act shall take effect
immediately, but shall apply to contracts awarded or renewed commencing 30 days
after the effective date of this act.
STATEMENT
���� This bill amends the
definition of persons engaging in investment activities in Iran to include
persons providing goods or services, or financial institutions extending credit
to persons for the provision of goods or services, in an amount more than $0 in
the energy sector of Iran.� Under current law, such persons are defined as
those providing $20 million or more of goods or services or credit for goods or
services in the energy sector in Iran.
���� The bill amends the current
law prohibiting public contracts by a State agency, local contracting unit,
board of education, or county college with persons or entities engaged in
certain investment activities in the energy and financial sectors of Iran.� The
purpose of the law is to support the federal sanctions policy of the United
States to deny Iran the ability to support acts of international terrorism or
to fund the development and acquisition of weapons of mass destruction through
its energy sector.