PRIOR PRINTER'S NOS. 205, 1390, 1433,
PRINTER'S NO. 4238
THE GENERAL ASSEMBLY OF PENNSYLVANIA
INTRODUCED BY DUNBAR, BLOOM, PICKETT, SAYLOR, TOEPEL, TRUITT, METCALFE, D. COSTA, QUINN, KAUFFMAN, SIMMONS, MOUL, SWANGER, REESE, R. MILLER, GINGRICH, V. BROWN, MATZIE, LAWRENCE, MILNE, GRELL, STERN, BENNINGHOFF, GROVE, GILLEN, EVANKOVICH, DENLINGER, ENGLISH AND FRANKEL, JANUARY 22, 2013
SENATOR CORMAN, APPROPRIATIONS, IN SENATE, RE-REPORTED AS AMENDED, OCTOBER 6, 2014
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
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
<-12"Energy-related activities." The term includes all of the
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
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.
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
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
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 <-entering into new
14agreements to engage in any future investment activities in
16(3) The department determines that the Commonwealth
17entity has no other <-cost-effective method of obtaining the
18goods or services than entering into a contract with the
20§ 3504. Certification.
<-21(a) General rule.--The department shall make available a
22certification form indicating that a person is not on the list
23under section 3503(a) (relating to list of persons engaged in
24investment activities) and is eligible under this chapter to
25contract with the Commonwealth. Prior to entering into a
26contract with a Commonwealth entity, a person shall provide a
27certification form to the Commonwealth entity, unless the person
28is exempt under section 3503(e).
<-29(b) Right to cure.--
30(1) If the department determines, using credible
1information available to the public, that a person has
2submitted a false certification under subsection (a), the
3person shall be provided with written notice and an
4opportunity to demonstrate to the department that the person
5has ceased its engagement in energy-related activities in
6Iran within 90 days of the notice.
7(2) A person who reasonably demonstrates to the
8department that the person has ceased its engagement in
9energy-related activities in Iran within 90 days after the
10written notice shall not be subject to the penalties under
11section 3505 (relating to penalties for false certification.)
12§ 3505. Penalties for false certification.
13(a) Penalties.--<-Upon determination by Subject to the
14provisions of section 3504(b) (relating to certification), if
15the department <-determines that a person has provided a false
16certification form to a Commonwealth entity under section 3504
17(relating to<- certification), the person shall be subject to the
19(1) A civil penalty in the amount of $250,000 or twice
20the amount of the <-investment contract, whichever is greater.
21Only one civil penalty may be imposed upon a person per
23(2) <-Termination Suspension of the existing contract with
24the Commonwealth entity for a period of three years from the
25date of the determination that the person submitted the false
26certification. Following the three-year <-suspension period,
27the Commonwealth entity or the department may <-permanently
28terminate the contract.
29(b) Report of false certification.--The department shall
30report to the Attorney General the name of the person who
1submitted the false certification and the pertinent information
2that led to the department's determination. No later than three
3years after the department makes a determination under
4subsection (a), the Attorney General shall determine whether to
5bring a civil action against the person to collect the penalty
6described in subsection (a). If a court determines the person
7submitted a false certification, the person shall pay all
8reasonable costs and fees incurred in the civil action.
9Reasonable costs shall include the reasonable costs incurred by
10the Commonwealth entity in investigating the authenticity of the
11certification. Only one civil action against the person may be
12brought for a false certification on a contract.
13(c) No private right of action.--Nothing in this section may
14be construed to create or authorize a private right of action.
15§ 3506. Expiration.
16The department shall have no obligations under this chapter
17with respect to a company engaged in business activities in Iran
18upon the occurrence of any of the following:
19(1) Iran does not appear on the List of State Sponsors
21(2) The President or Congress of the United States,
22through legislation or executive order, declares that
23mandatory divestment of the type provided for in this chapter
24interferes with the conduct of United States foreign policy.
25Section 4. This act shall take effect as follows:
26(1) The amendment of 62 Pa.C.S. Ch. 35 shall take effect
<-27January 1, 2014, or immediately, whichever is later. July 1,
29(2) This section shall take effect immediately.
30(3) The remainder of this act shall take effect in 60