,,ii #aahth ,,congress #ast ,session ,s4 #afcg ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #ag1 #bjbc,mr4 ,rubio 7for himself1 ,mr4 ,cassidy1 ,mr4 ,braun1 ,mr4 ,scott of ,florida1 ,mr4 ,daines1 and ,mr4 ,hagerty7 introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to provide for nonpreemption of measures by ,state and local governments to divest from entities that engage in certain boycott1 divestment1 or sanctions activities targeting ,israel or persons doing business in ,israel or ,israeli-controlled territories1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,combating ,,bds ,act of #bjbc4 #b4 ,nonpreemption of measures by ,state and local governments to divest from entities that engage in certain boycott1 divestment1 or sanctions activities targeting ,israel or persons doing business in ,israel or ,israeli-controlled territories 7a7 ,state and local measures ,notwithstanding any other provision of law1 a ,state or local government may adopt and enforce measures that meet the requirements of subsection 7c7 to divest the assets of the ,state or local government from1 prohibit investment of the assets of the ,state or local government in1 or restrict contracting by the ,state or local government for goods and services with-- 7#a7 an entity that the ,state or local government determines1 using credible information available to the public1 knowingly engages in an activity described in subsection 7b72 7#b7 a successor entity or subunit of an entity described in paragraph 7#a72 or 7#c7 an entity that owns or controls or is owned or controlled by an entity described in paragraph 7#a74 7b7 ,activities described ,an activity described in this subsection is a commerce-related or investment-related boycott1 divestment1 or sanctions activity in the course of interstate or international commerce that is intended to penalize1 inflict economic harm on1 or otherwise limit commercial relations with ,israel or persons doing business in ,israel or ,israeli-controlled territories for purposes of coercing political action by1 or imposing policy positions on1 the ,government of ,israel4 7c7 ,requirements ,a ,state or local government that seeks to adopt or enforce a measure under subsection 7a7 shall meet the following requirements3 7#a7 ,notice ,the ,state or local government shall provide written notice-- 7,a7 in the case of a measure relating to divestment or investment1 to each entity to which the measure is to be applied2 and 7,b7 in the case of a measure relating to contracting1 of the restrictions imposed by the measure to each prospective contractor before entering into a contract4 7#b7 ,timing ,a measure relating to divestment or investment shall apply to an entity not earlier than the date that is #ij days after the date on which written notice is provided to the entity under paragraph 7#a74 7#c7 ,opportunity for comment ,in the case of a measure relating to divestment or investment1 the ,state or local government shall provide an opportunity to comment in writing to each entity to which the measure is to be applied4 ,if the entity demonstrates to the ,state or local government that neither the entity nor any entity related to the entity as described in paragraph 7#b7 or 7#c7 of subsection 7a7 has knowingly engaged in an activity described in subsection 7b71 the measure shall not apply to the entity4 7#d7 ,disclosure in contracting measures ,the ,state or local government may require1 in a measure relating to contracting1 that a prospective contractor disclose whether the prospective contractor or any entity related to the prospective contractor as described in paragraph 7#b7 or 7#c7 of subsection 7a7 knowingly engages in any activity described in subsection 7b7 before entering into a contract4 7#e7 ,sense of ,congress on avoiding erroneous targeting ,it is the sense of ,congress that a ,state or local government should not adopt a measure under subsection 7a7 with respect to an entity unless the ,state or local government has made every effort to avoid erroneously targeting the entity and has verified that the entity engages in an activity described in subsection 7b74 7d7 ,notice to ,department of ,justice 7#a7 ,in general ,except as provided in paragraph 7#b71 not later than #cj days after adopting a measure described in subsection 7a71 the ,state or local government that adopted the measure shall submit written notice to the ,attorney ,general describing the measure4 7#b7 ,existing measures ,with respect to measures described in subsection 7a7 adopted before the date of the enactment of this ,act1 the ,state or local government that adopted the measure shall submit written notice to the ,attorney ,general describing the measure not later than #cj days after the date of the enactment of this ,act4 7e7 ,nonpreemption ,a measure of a ,state or local government that is consistent with subsection 7a7 is not preempted by any ,federal law4 7f7 ,prior enacted measures 7#a7 ,in general ,notwithstanding any other provision of this section or any other provision of law1 and except as provided in paragraph 7#b71 a ,state or local government may enforce a measure described in subsection 7a7 adopted by the ,state or local government before the date of the enactment of this ,act without regard to the requirements of subsection 7c74 7#b7 ,application of notice and opportunity for comment ,enforcement of a measure described in paragraph 7#a7 shall be subject to the requirements of subsection 7c7 on and after the date that is #b years after the date of the enactment of this ,act4 7g7 ,rules of construction 7#a7 ,authority of ,states ,nothing in this section shall be construed to abridge the authority of a ,state to issue and enforce rules governing the safety1 soundness1 and solvency of a financial institution subject to its jurisdiction or the business of insurance pursuant to the ,act of ,march #i1 #aide 7#ei ,stat4 #cc1 chapter #bj2 #ae ,u4,s4,c4 #ajaa et seq47 7commonly known as the ,mc,carran-,ferguson ,act74 7#b7 ,policy of the ,united ,states ,nothing in this section shall be construed to alter the established policy of the ,united ,states concerning final status issues associated with the ,palestinian-,israeli conflict1 including border delineation1 that can only be resolved through direct negotiations between the parties4 7h7 ,definitions ,in this section3 7#a7 ,assets 7,a7 ,in general ,except as provided in subparagraph 7,b71 the term assets means any pension1 retirement1 annuity1 or endowment fund1 or similar instrument1 that is controlled by a ,state or local government4 7,b7 ,exception ,the term assets does not include employee benefit plans covered by title ,i of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajja et seq474 7#b7 ,entity ,the term entity includes-- 7,a7 any corporation1 company1 business association1 partnership1 or trust2 and 7,b7 any governmental entity or instrumentality of a government1 including a multilateral development institution 7as defined in section #agja7;c77#c7 of the ,international ,financial ,institutions ,act 7#bb ,u4,s4,c4 #bfbr7c77#c7774 7#c7 ,investment ,the term investment includes-- 7,a7 a commitment or contribution of funds or property2 7,b7 a loan or other extension of credit2 and 7,c7 the entry into or renewal of a contract for goods or services4 7#d7 ,knowingly ,the term knowingly1 with respect to conduct1 a circumstance1 or a result1 means that a person has actual knowledge1 or should have known1 of the conduct1 the circumstance1 or the result4 7#e7 ,state ,the term ,state means each of the several ,states1 the ,district of ,columbia1 the ,commonwealth of ,puerto ,rico1 the ,commonwealth of the ,northern ,mariana ,islands1 ,american ,samoa1 ,guam1 the ,united ,states ,virgin ,islands1 and any other territory or possession of the ,united ,states4 7#f7 ,state or local government ,the term ,state or local government includes-- 7,a7 any ,state and any agency or instrumentality thereof2 7,b7 any local government within a ,state and any agency or instrumentality thereof2 and 7,c7 any other governmental instrumentality of a ,state or locality4 #c4 ,safe harbor for changes of investment policies by asset managers ,section #ac7;c77#a7 of the ,investment ,company ,act of #aidj 7#ae ,u4,s4,c4 #hj;a-#ac7;c77#a77 is amended-- 7#a7 in subparagraph 7,a71 by striking 2 or and inserting a semicolon2 7#b7 in subparagraph 7,b71 by striking the period at the end and inserting 2 or2 and 7#c7 by adding at the end the following3 7,c7 knowingly engage in any activity described in section #b7;b7 of the ,combating ,,bds ,act of #bjbc4 4 #d4 ,sense of ,congress regarding certain ,,erisa plan investments ,it is the sense of ,congress that-- 7#a7 a fiduciary of an employee benefit plan1 as defined in section #c7c7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajjb7c771 may divest plan assets from1 or avoid investing plan assets in1 any person the fiduciary determines knowingly engages in any activity described in section #b7;b71 if-- 7,a7 the fiduciary makes that determination using credible information that is available to the public2 and 7,b7 the fiduciary prudently determines that the result of that divestment or avoidance of investment would not be expected to provide the employee benefit plan with-- 7i7 a lower rate of return than alternative investments with commensurate degrees of risk2 or 7ii7 a higher degree of risk than alternative investments with commensurate rates of return2 and 7#b7 by divesting assets or avoiding the investment of assets as described in paragraph 7#a71 the fiduciary is not breaching the responsibilities1 obligations1 or duties imposed upon the fiduciary by subparagraph 7,a7 or 7,b7 of section #djd7;a77#a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aajd7;a77#a774 #e4 ,rule of construction ,nothing in this ,act shall be construed to infringe upon any right protected under the ,first ,amendment to the ,constitution of the ,united ,states4