1Amending Title 62 (Procurement) of the Pennsylvania Consolidated
2Statutes, in source selection and contract formation, further
3providing for competitive sealed proposals; providing for 
4investment activities in Iran; and imposing civil penalties.

5The General Assembly of the Commonwealth of Pennsylvania
6hereby enacts as follows:

7Section 1. Section 513(e) of Title 62 of the Pennsylvania
8Consolidated Statutes is amended to read:

9§ 513. Competitive sealed proposals.

10* * *

11(e) Evaluation.--The relative importance of the evaluation
12factors shall be fixed prior to opening the proposals. A
13Commonwealth agency [is required to] shall invite its
14comptroller to participate in the evaluation as a nonvoting
15member of any evaluation committee. No individual who has been 
16employed by an offeror within the preceding two years may
 

1participate in the evaluation of proposals.

2* * *

3Section 2. The heading of Chapter 35 of Title 62 is amended
4to read:

5CHAPTER 35

6[(RESERVED)]

7IRAN FREE PROCUREMENT

8Section 3. Title 62 is amended by adding sections to read:

9§ 3501. Definitions.

10"Department." The Department of General Services of the
11Commonwealth.

<-12"Energy-related activities." The term includes all of the
13following:

14(1) Development of petroleum, natural gas or nuclear
15energy resources. This paragraph does not include the mere
16sale of gasoline and related consumer products.

17(2) Owning rights to oil or natural gas blocks or
18nuclear facilities.

19(3) Exporting, extracting, producing, refining,
20processing, exploring for, transporting, selling or trading
21oil or natural gas or developing nuclear energy.

22(4) Constructing, maintaining or operating any pipeline,
23refinery, liquefaction facility, nuclear reactor or other
24oil, natural gas or nuclear energy infrastructure.

25"Financial institution." The term as defined in section 14
26of the Iran Sanctions Act of 1996 (Public Law 104-172, 50 U.S.C.
27§ 1701).

28"Iran." The government of Iran or an agency or
29instrumentality of Iran.

30"Person." An individual, organization, a financial

1institution, sole proprietorship, association, corporation,
2partnership, joint venture, limited partnership, limited
3liability partnership, limited liability company or other entity
4or business association that exists for the purpose of making a
5profit or government entity that includes a multilateral
6development institution as defined in section 1701 of the
7International Financial Institutions Act (Public Law 95-118, 22
8U.S.C. 262r).

9§ 3502. Engaging in investment activities.

10A person or financial institution engages in an investment
11activity by doing any of the following:

12(1) Providing goods or services worth at least
13$20,000,000, including oil tankers or transporters and
14liquefied natural gas tankers or transporters, to the <-energy
15sector <-energy-related activities of Iran, or products used to
16construct or maintain pipelines used to transport oil or
17liquefied natural gas for the energy sector of Iran.

18(2) Extending at least $20,000,000 in credit to a person
19for 45 days or more if all of the following apply:

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

21services to the energy sector in Iran.

22(ii) The person is<-, at the time the financial 
23institution or person extends credit, identified on a
24list created under section 3503 (relating to list of
25persons engaged in investment activities).

26§ 3503. List of persons engaged in investment activities.

27(a) List.--The department shall develop a list of persons
28whom the department determines are engaged in investment
29activities in Iran as described in section 3502 (relating to
30engaging in investment activities). The department shall make

1its determination based on publicly available, credible
2information. The department shall update the list every 180
3days. Ninety days prior <-to adding a person to the list, the
4department shall do all of the following:

5(1) Provide notice to the person of the department's
6intention to add the person to the list. The notice shall
7inform the person that inclusion on the list makes the person
8ineligible to enter into a contract with a Commonwealth
9entity for goods or services worth at least $1,000,000. The
10notice shall specify that if the person ceases to engage in
11investment activities in Iran, the person may regain
12eligibility upon removal from the list.

13(2) Provide the person an opportunity to comment in
14writing to the department. The person shall maintain
15eligibility if the person demonstrates no engagement in
16investment activities in Iran.

17(b) Ineligibility of persons on list.--A person identified
18on a list under subsection (a) shall be ineligible to enter into
19a contract with a Commonwealth entity <-to provide for goods or
20services worth at least $1,000,000.

21(c) Fee List.--The department <-may assess a fee to obtain a
22copy of the list <-shall post the list on its publicly accessible
23Internet website. Upon request, the department shall provide the
24list free of charge to the General Assembly or a public entity.

<-25(d) Retirement system investments.--A person who enters into
26a contract with the Public School Employees' Retirement System
27or the State Employees' Retirement System shall not be deemed a
28person who engages in investment activities in Iran on the basis
29of the person's investments with the retirement system.

<-30(d) Investment service contracts.--Service contracts entered
 

1into by Commonwealth entities for the management and investment 
2of a fund for which there is a fiduciary responsibility and for 
3which compliance with the act of July 2, 2010 (P.L.266, No.44), 
4known as the Protecting Pennsylvania's Investments Act, is 
5required, shall be exempt from the provisions of this chapter.

6(e) Exception.--On a case-by-case basis, the department may
7permit a person engaging in investment activities in Iran to
8enter a contract with a Commonwealth entity for goods or
9services worth at least $1,000,000 if <-all any of the following
10apply:

11(1) The investment activities in Iran were made before
12and were not expanded after July 1, <-2010 2015.

13(2) The person refrains from engaging in any future
14investment activities in Iran.

15(3) The department determines that the Commonwealth
16entity has no other method of obtaining the goods or services
17than entering into a contract with the person.

18§ 3504. Certification.

<-19(a) General rule.--The department shall make available a
20certification form indicating that a person is not on the list
21under section 3503(a) (relating to list of persons engaged in
22investment activities) and is eligible under this chapter to
23contract with the Commonwealth. Prior to entering into a
24contract with a Commonwealth entity, a person shall provide a
25certification form to the Commonwealth entity, unless the person
26is exempt under section 3503(e).

<-27(b) Right to cure.--

28(1) If the department determines, using credible
29information available to the public, that a person has
30submitted a false certification under subsection (a), the

1person shall be provided with written notice and an
2opportunity to demonstrate to the department that the person
3has ceased its engagement in energy-related activities in
4Iran within 90 days of the notice.

5(2) A person who reasonably demonstrates to the
6department that the person has ceased its engagement in
7energy-related activities in Iran within 90 days after the
8written notice shall not be subject to the penalties under
9section 3505 (relating to penalties for false certification.)

10§ 3505. Penalties for false certification.

11(a) Penalties.--<-Upon determination by Subject to the
12provisions of section 3504(b) (relating to certification), if
13the department that a person has provided a false certification
14form to a Commonwealth entity under section 3504 (relating to<-
15certification), the person shall be subject to the following:

16(1) A civil penalty in the amount of $250,000 or twice
17the amount of the <-investment contract, whichever is greater.
18Only one civil penalty may be imposed upon a person per
19investment.

20(2) Termination of the existing contract with the
21Commonwealth entity for a period of three years from the date
22of the determination that the person submitted the false
23certification. Following the three-year period, the
24Commonwealth entity or the department may permanently
25terminate the contract.

26(b) Report of false certification.--The department shall
27report to the Attorney General the name of the person who
28submitted the false certification and the pertinent information
29that led to the department's determination. No later than three
30years after the department makes a determination under

1subsection (a), the Attorney General shall determine whether to
2bring a civil action against the person to collect the penalty
3described in subsection (a). If a court determines the person
4submitted a false certification, the person shall pay all
5reasonable costs and fees incurred in the civil action.
6Reasonable costs shall include the reasonable costs incurred by
7the Commonwealth entity in investigating the authenticity of the
8certification. Only one civil action against the person may be
9brought for a false certification on a contract.

10(c) No private right of action.--Nothing in this section may
11be construed to create or authorize a private right of action.

12§ 3506. Expiration.

13The department shall have no obligations under this chapter
14with respect to a company engaged in business activities in Iran
15upon the occurrence of any of the following:

16(1) Iran does not appear on the List of State Sponsors
17of Terrorism.

18(2) The President or Congress of the United States,
19through legislation or executive order, declares that
20mandatory divestment of the type provided for in this chapter
21interferes with the conduct of United States foreign policy.

22Section 4. This act shall take effect as follows:

23(1) The amendment of 62 Pa.C.S. Ch. 35 shall take effect
<-24January 1, 2014, or immediately, whichever is later. July 1, 
252015.

26(2) This section shall take effect immediately.

27(3) The remainder of this act shall take effect in 60
28days.