1Amending Title 62 (Procurement) of the Pennsylvania Consolidated
2Statutes, providing for investment activities in Iran; and
3imposing civil penalties.

4The General Assembly of the Commonwealth of Pennsylvania
5hereby enacts as follows:

6Section 1. Chapter 35 of Title 62 of the Pennsylvania
7Consolidated Statutes is amended to read:

8CHAPTER 35

9[(RESERVED)]

10IRAN FREE PROCUREMENT

11Sec.

123501. Definitions.

133502. Engaging in investment activities.

143503. List of persons engaged in investment activities.

153504. Certification.

163505. Penalties for false certification.

173506. Expiration.

1§ 3501. Definitions.

2"Department." The Department of General Services of the
3Commonwealth.

4"Financial institution." The term as defined in section 14
5of the Iran Sanctions Act of 1996 (Public Law 104-172, 50 U.S.C.
6§ 1701).

7"Iran." The government of Iran or an agency or
8instrumentality of Iran.

9"Person." An individual, organization, a financial
10institution, sole proprietorship, association, corporation,
11partnership, joint venture, limited partnership, limited
12liability partnership, limited liability company or other entity
13or business association that exists for the purpose of making a
14profit or government entity that includes a multilateral
15development institution as defined in section 1701 of the
16International Financial Institutions Act (Public Law 95-118, 22
17U.S.C. 262r).

18§ 3502. Engaging in investment activities.

19A person or financial institution engages in an investment
20activity by doing any of the following:

21(1) Providing goods or services worth at least
22$20,000,000, including oil tankers or transporters and
23liquefied natural gas tankers or transporters, to the energy
24sector of Iran, or products used to construct or maintain
25pipelines used to transport oil or liquefied natural gas for
26the energy sector of Iran.

27(2) Extending at least $1,000,000 in credit to a person
28for 45 days or more if all of the following apply:

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

30services to the energy sector in Iran.

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

2under section 3503 (relating to list of persons engaged
3in investment activities).

4§ 3503. List of persons engaged in investment activities.

5(a) List.--The department shall develop a list of persons
6whom the department determines are engaged in investment
7activities in Iran as described in section 3502 (relating to
8engaging in investment activities). The department shall make
9its determination based on publicly available, credible
10information. The department shall update the list every 180
11days. Ninety days prior adding a person to the list, the
12department shall do all of the following:

13(1) Provide notice to the person of the department's
14intention to add the person to the list. The notice shall
15inform the person that inclusion on the list makes the person
16ineligible to enter into a contract with a Commonwealth
17entity for goods or services worth at least $1,000,000. The
18notice shall specify that if the person ceases to engage in
19investment activities in Iran, the person may regain
20eligibility upon removal from the list.

21(2) Provide the person an opportunity to comment in
22writing to the department. The person shall maintain
23eligibility if the person demonstrates no engagement in
24investment activities in Iran.

25(b) Ineligibility of persons on list.--A person identified
26on a list under subsection (a) shall be ineligible to enter into
27a contract with a Commonwealth entity for goods or services
28worth at least $1,000,000.

29(c) Fee.--The department may assess a fee to obtain a copy
30of the list. Upon request, the department shall provide the list

1free of charge to the General Assembly or a public entity.

2(d) Retirement system investments.--A person who enters into
3a contract with the Public School Employees' Retirement System
4or the State Employees' Retirement System shall not be deemed a
5person who engages in investment activities in Iran on the basis
6of the person's investments with the retirement system.

7(e) Exception.--On a case-by-case basis, the department may
8permit a person engaging in investment activities in Iran to
9enter a contract with a Commonwealth entity for goods or
10services worth at least $1,000,000 if all of the following
11apply:

12(1) The investment activities in Iran were made before
13and were not expanded after July 1, 2010.

14(2) The person refrains from engaging in any future
15investment activities in Iran.

16(3) The department determines that the Commonwealth
17entity has no other method of obtaining the goods or services
18than entering into a contract with the person.

19§ 3504. Certification.

20The department shall make available a certification form
21indicating that a person is not on the list under section
223503(a) (relating to list of persons engaged in investment
23activities) and is eligible under this chapter to contract with
24the Commonwealth. Prior to entering into a contract with a
25Commonwealth entity, a person shall provide a certification form
26to the Commonwealth entity, unless the person is exempt under
27section 3503(e).

28§ 3505. Penalties for false certification.

29(a) Penalties.--Upon determination by the department that a
30person has provided a false certification form to a Commonwealth

1entity under section 3504 (relating to certification), the
2person shall be subject to the following:

3(1) A civil penalty in the amount of $250,000 or twice
4the amount of the investment, whichever is greater. Only one
5civil penalty may be imposed upon a person per investment.

6(2) Termination of the existing contract with the
7Commonwealth entity for a period of three years from the date
8of the determination that the person submitted the false
9certification. Following the three-year period, the
10Commonwealth entity or the department may permanently
11terminate the contract.

12(b) Report of false certification.--The department shall
13report to the Attorney General the name of the person who
14submitted the false certification and the pertinent information
15that led to the department's determination. No later than three
16years after the department makes a determination under
17subsection (a), the Attorney General shall determine whether to
18bring a civil action against the person to collect the penalty
19described in subsection (a). If a court determines the person
20submitted a false certification, the person shall pay all
21reasonable costs and fees incurred in the civil action.
22Reasonable costs shall include the reasonable costs incurred by
23the Commonwealth entity in investigating the authenticity of the
24certification. Only one civil action against the person may be
25brought for a false certification on a contract.

26(c) No private right of action.--Nothing in this section may
27be construed to create or authorize a private right of action.

28§ 3506. Expiration.

29The department shall have no obligations under this chapter
30with respect to a company engaged in business activities in Iran

1upon the occurrence of any of the following:

2(1) Iran does not appear on the List of State Sponsors
3of Terrorism.

4(2) The President or Congress of the United States,
5through legislation or executive order, declares that
6mandatory divestment of the type provided for in this chapter
7interferes with the conduct of United States foreign policy.

8Section 2. This act shall take effect January 1, 2014, or
9immediately, whichever is later.