On 23 September 2012, California Governor Edmund G. Brown Jr. signed into law a bill that will require insurance companies domiciled in California to treat investments in any company identified as having financial ties to Iran’s energy sector (based on the inclusion of such company on a list published by the California Department of General Services) as non-admitted assets in their financial statements filed with the California Department of Insurance. Assembly Bill 2160 (codified as section 1241.2 of the California Insurance Code) will become effective on 1 January 2013. The bill was generally opposed by the insurance industry and is likely to become the subject of a constitutional challenge, since a series of decisions from the US Supreme Court have clearly established that actions by state and local governments that infringe on the conduct of foreign policy by the federal government are pre-empted by federal law.