1Amend Bill, page 1, line 3, by inserting after "proposals"

2; providing for investment activities in Iran; and
3imposing civil penalties

4Amend Bill, page 1, by inserting after line 17

5Section 2. The heading of Chapter 35 of Title 62 is amended
6to read:

7CHAPTER 35

8[(RESERVED)]

9IRAN FREE PROCUREMENT

10Section 3. Title 62 is amended by adding sections to read:

11§ 3501. Definitions.

12"Department." The Department of General Services of the
13Commonwealth.

14"Financial institution." The term as defined in section 14
15of the Iran Sanctions Act of 1996 (Public Law 104-172, 50 U.S.C.
16§ 1701).

17"Iran." The government of Iran or an agency or
18instrumentality of Iran.

19"Person." An individual, organization, a financial
20institution, sole proprietorship, association, corporation,
21partnership, joint venture, limited partnership, limited
22liability partnership, limited liability company or other entity
23or business association that exists for the purpose of making a
24profit or government entity that includes a multilateral
25development institution as defined in section 1701 of the
26International Financial Institutions Act (Public Law 95-118, 22
27U.S.C. 262r).

28§ 3502. Engaging in investment activities.

29A person or financial institution engages in an investment
30activity by doing any of the following:

31(1) Providing goods or services worth at least
32$20,000,000, including oil tankers or transporters and
33liquefied natural gas tankers or transporters, to the energy
34sector of Iran, or products used to construct or maintain
35pipelines used to transport oil or liquefied natural gas for
36the energy sector of Iran.

37(2) Extending at least $1,000,000 in credit to a person

1for 45 days or more if all of the following apply:

2(i) The person uses the credit to provide goods or

3services to the energy sector in Iran.

4(ii) The person is identified on a list created

5under section 3503 (relating to list of persons engaged
6in investment activities).

7§ 3503. List of persons engaged in investment activities.

8(a) List.--The department shall develop a list of persons
9whom the department determines are engaged in investment
10activities in Iran as described in section 3502 (relating to
11engaging in investment activities). The department shall make
12its determination based on publicly available, credible
13information. The department shall update the list every 180
14days. Ninety days prior adding a person to the list, the
15department shall do all of the following:

16(1) Provide notice to the person of the department's
17intention to add the person to the list. The notice shall
18inform the person that inclusion on the list makes the person
19ineligible to enter into a contract with a Commonwealth
20entity for goods or services worth at least $1,000,000. The
21notice shall specify that if the person ceases to engage in
22investment activities in Iran, the person may regain
23eligibility upon removal from the list.

24(2) Provide the person an opportunity to comment in
25writing to the department. The person shall maintain
26eligibility if the person demonstrates no engagement in
27investment activities in Iran.

28(b) Ineligibility of persons on list.--A person identified
29on a list under subsection (a) shall be ineligible to enter into
30a contract with a Commonwealth entity for goods or services
31worth at least $1,000,000.

32(c) Fee.--The department may assess a fee to obtain a copy
33of the list. Upon request, the department shall provide the list
34free of charge to the General Assembly or a public entity.

35(d) Retirement system investments.--A person who enters into
36a contract with the Public School Employees' Retirement System
37or the State Employees' Retirement System shall not be deemed a
38person who engages in investment activities in Iran on the basis
39of the person's investments with the retirement system.

40(e) Exception.--On a case-by-case basis, the department may
41permit a person engaging in investment activities in Iran to
42enter a contract with a Commonwealth entity for goods or
43services worth at least $1,000,000 if all of the following
44apply:

45(1) The investment activities in Iran were made before
46and were not expanded after July 1, 2010.

47(2) The person refrains from engaging in any future
48investment activities in Iran.

49(3) The department determines that the Commonwealth
50entity has no other method of obtaining the goods or services
51than entering into a contract with the person.

1§ 3504. Certification.

2The department shall make available a certification form
3indicating that a person is not on the list under section
43503(a) (relating to list of persons engaged in investment
5activities) and is eligible under this chapter to contract with
6the Commonwealth. Prior to entering into a contract with a
7Commonwealth entity, a person shall provide a certification form
8to the Commonwealth entity, unless the person is exempt under
9section 3503(e).

10§ 3505. Penalties for false certification.

11(a) Penalties.--Upon determination by the department that a
12person has provided a false certification form to a Commonwealth
13entity under section 3504 (relating to certification), the
14person shall be subject to the following:

15(1) A civil penalty in the amount of $250,000 or twice
16the amount of the investment, whichever is greater. Only one
17civil penalty may be imposed upon a person per investment.

18(2) Termination of the existing contract with the
19Commonwealth entity for a period of three years from the date
20of the determination that the person submitted the false
21certification. Following the three-year period, the
22Commonwealth entity or the department may permanently
23terminate the contract.

24(b) Report of false certification.--The department shall
25report to the Attorney General the name of the person who
26submitted the false certification and the pertinent information
27that led to the department's determination. No later than three
28years after the department makes a determination under
29subsection (a), the Attorney General shall determine whether to
30bring a civil action against the person to collect the penalty
31described in subsection (a). If a court determines the person
32submitted a false certification, the person shall pay all
33reasonable costs and fees incurred in the civil action.
34Reasonable costs shall include the reasonable costs incurred by
35the Commonwealth entity in investigating the authenticity of the
36certification. Only one civil action against the person may be
37brought for a false certification on a contract.

38(c) No private right of action.--Nothing in this section may
39be construed to create or authorize a private right of action.

40§ 3506. Expiration.

41The department shall have no obligations under this chapter
42with respect to a company engaged in business activities in Iran
43upon the occurrence of any of the following:

44(1) Iran does not appear on the List of State Sponsors
45of Terrorism.

46(2) The President or Congress of the United States,
47through legislation or executive order, declares that
48mandatory divestment of the type provided for in this chapter
49interferes with the conduct of United States foreign policy.

50Amend Bill, page 2, line 1, by striking out "2" and inserting

1 4

2Amend Bill, page 2, line 1, by striking out "60 days." and
3inserting

4as follows:

5(1) The amendment of 62 Pa.C.S. Ch. 35 shall take effect
6January 1, 2014, or immediately, whichever is later.

7(2) This section shall take effect immediately.

8(3) The remainder of this act shall take effect in 60
9days.