Several Florida Democrats oppose Iran sanction bill in committee vote

Published Nov. 6, 2023, 6:05 p.m. ET | Updated Nov. 6, 2023

Florida Capitol.
Florida Capitol.

TALLAHASSEE, Fla. – Several Florida Democrats voted against a bill in committees that would increase sanctions on the Iranian government.

Reps. Anna Eskamani, D-Miami, Ashley Gantt, D-Orlando, Michelle Rayner, D-St. Petersburg, Felicia Robinson, D-Miami Gardens, voted against the passage of HB 5-C.

The Senate Rules Committee and House State Affairs Committee passed SB 10-C and the identical HB 5-C, a bill expanding the definition of “scrutinized companies” that do business with Iran.

Florida lawmakers convened in a special session to tackle a variety of issues including a resolution to support the State of Israel and implement additional sanctions on Iran. Iran is a backer of Hamas, the group that launched a brutal terrorist attack against Israel on Oct. 7. 

“This bill amends the protect Florida Investment Act to expand the definition of scrutinized companies in Iran that will be subject to divestment from specific state funds and will be ineligible for future investment,” Sen. Bryan Avila, R-Hialeah Gardens, said about the senate version of the bill. 

In the House State Affairs Committee, Rayner and Eskamani gave their reason as to why they were opposed to the legislation.

“You know that when people want to commit evil acts, they will find a way to do that,” Rayner told Rep. John Snyder, R-Palm Coast, the House bill’s sponsor.

“And so I’m concerned of the circumvention aspect with this,” she said. “I’m concerned that this may also be in direct contravention to federal law.”

Eskamani shared her emotional connection to why she planned to oppose the bill.

“I have a lot of family in Iran. Majority of my family is in Iran,” she said. “And I cannot vote for something that could potentially hurt my family in Iran. And so members, I will be voting no on this.”

Snyder responded to Eskamani’s concerns by explaining exactly what type of companies would potentially lose funding.

“[…] as we are expanding this list of scrutinized companies, while it does encompass all sectors of the Iranian economy, there is a very clear provision that the company must have business operations and contracts with or provision of supplies of services to the government of Iran,” he said.

Avila explained to the Senate Rules Committee that the bill would require the State Board of Administration to divest its current holdings in the Florida Retirement System Portfolio from a company that meets the “broader definition.”

“The definition of ‘scrutinized company’ is expanded to include any company doing business with the government of Iran in the energy, petrochemical, financial, construction, manufacturing, textile, mining, metals, shipping, shipbuilding and port sectors,” Avila said.

He added that a company will be labeled as “scrutinized” if it has more than 10% of its assets or revenue linked to Iran and fails to identify a plan to cease its operations in the nation within one year.

The other definition of the label is if a company knowingly has more than $20 million in investment in those Iranian sectors.

“These scrutinized companies will be barred from bidding on, submitting a proposal for or entering into or renewing a contract with an agency or local government entity for goods and services of $1 million or more,” he said.

Avila said he did not know exactly how many companies would be added to the list, in response to a question by Sen. Shevrin Jones, R-Miami Gardens.

“We are going from, essentially what it used to be, which were essentially two sectors, mostly petro and mineral,” he said.

Avila said that because of this, he does expect an increase simply because the amount of industries that qualify for the scrutinization label is expanded.

He also added that it is “indeterminate” which specific companies that are currently doing business with the state would be potentially at risk of Florida removing resources from.

“We’re going into other sectors where certainly those funds that the Iranian regime receives, those funds are certainly being used to fund terrorist activities in the region,” he said.

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