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PRINTER'S NO. 2825
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1969
Session of
2017
INTRODUCED BY MICCARELLI, BOYLE, BAKER, BERNSTINE, DRISCOLL,
DAY, SCHLOSSBERG, MILLARD, HELM, BARBIN, WHEELAND AND WATSON,
DECEMBER 13, 2017
REFERRED TO COMMITTEE ON STATE GOVERNMENT, DECEMBER 13, 2017
AN ACT
Amending Title 62 (Procurement) of the Pennsylvania Consolidated
Statutes, prohibiting Commonwealth agencies from entering
into contracts with persons who engage in boycotts against or
divestment from Israel.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 62 of the Pennsylvania Consolidated
Statutes is amended by adding a chapter to read:
CHAPTER 38
PERSONS ENGAGED IN BOYCOTTS AGAINST OR
DIVESTMENT FROM ISRAEL
Sec.
3801. Definitions.
3802. Engaging in a boycott against or divestment from Israel.
3803. List of persons engaged in a boycott against or
divestment from Israel.
3804. Certification.
3805. Penalties for false certification.
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§ 3801. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Boycott against or divestment from Israel." Actions that
are politically motivated and are intended to penalize Israel or
otherwise limit commercial activities.
"Commercial activities." Owning or controlling property or
assets located in, having employees or facilities located in,
providing goods or services to, having distribution agreements
with, issuing credit or loans to, purchasing bonds or commercial
paper issued by, investing in or having equity ties to or with
Israel or any company or person domiciled in Israel.
"Company." Any sole proprietorship, organization,
association, corporation, partnership, joint venture, limited
partnership, limited liability partnership, limited liability
company or other entity or business association.
"Department." The Department of General Services of the
Commonwealth.
"Israel." The State of Israel.
"List." The list maintained by the Department of General
Services under section 3803(a) (relating to list of persons
engaged in a boycott against or divestment from Israel).
"Person." An individual, organization, financial
institution, sole proprietorship, association, corporation,
partnership, joint venture, limited partnership, limited
liability partnership, limited liability company or other entity
or business association that exists for the purpose of making a
profit or a government entity that includes a multilateral
development institution as defined in section 1701 of the
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International Financial Institutions Act (Public Law 95-118, 22
U.S.C. § 262r).
§ 3802. Engaging in a boycott against or divestment from
Israel.
A person engages in a boycott against or divestment from
Israel if the person has publicly announced or otherwise engages
in a boycott against or divestment from Israel.
§ 3803. List of persons engaged in a boycott against or
divestment from Israel.
(a) Duty of department.--The department shall develop a list
of persons who the department determines are engaged in a
boycott against or divestment from Israel as described in
section 3802 (relating to engaging in a boycott against or
divestment from Israel). The department shall make its
determination based on publicly available, credible information.
The department shall update the list every 180 days. Ninety days
prior to adding a person to the list, the department shall do
all of the following:
(1) Provide notice to the person of the department's
intention to add the person to the list. The notice shall
inform the person that the person's inclusion on the list
makes the person ineligible to enter into a contract with a
Commonwealth agency for goods or services. The notice shall
specify that if the department's determination as to the
person is erroneous or any of the exceptions enumerated in
subsection (d) apply, the person may regain eligibility upon
removal from the list.
(2) Provide the person an opportunity to comment in
writing to the department. The person shall maintain
eligibility if the person demonstrates that the department's
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determination is erroneous or any of the exceptions
enumerated in subsection (d) apply.
(b) Ineligibility of persons on list.--A person identified
on the list shall be ineligible to enter into a contract with a
Commonwealth agency to provide for goods or services.
(c) List.--The department shall post the list on its
publicly accessible Internet website. Upon request, the
department shall provide a hard copy of the list free of charge
to the General Assembly or a public entity.
(d) Exception.--On a case-by-case basis, the department may
permit a person on the list to enter a contract with a
Commonwealth entity for goods or services if any of the
following apply:
(1) The person's boycott against or divestment from
Israel occurred before and was not expanded after the
effective date of this section.
(2) The person refrains from entering into new
agreements to engage in any future boycott against or
divestment from Israel.
(3) The department determines that the Commonwealth
entity has no other cost-effective method of obtaining the
goods or services than entering into a contract with the
person.
(4) The person has retracted the person's public
announcement of engaging in, or otherwise demonstrates that
the person is no longer engaged in, a boycott against or
divestment from Israel.
§ 3804. Certification.
(a) Availability and use of form.--
(1) The department shall make available a certification
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form indicating that a person is not on the list and is
eligible under this chapter to contract with a Commonwealth
agency.
(2) Prior to entering into a contract with a
Commonwealth agency, a person shall provide a certification
form to the Commonwealth agency unless an exception applies
under section 3803(d) (relating to list of persons engaged in
a boycott against or divestment from Israel).
(b) Right to cure.--
(1) If the department determines, using credible
information available to the public, that a person has
submitted a false certification under subsection (a), the
person shall be provided with written notice and an
opportunity to demonstrate to the department that the
department's determination is erroneous or that the person
has ceased to be engaged in a boycott against or divestment
from Israel within 90 days of the notice.
(2) A person who reasonably demonstrates to the
department that the department's determination is erroneous
or the person has ceased to be engaged in a boycott against
or divestment from Israel within 90 days after the written
notice shall not be subject to the penalties under section
3805 (relating to penalties for false certification).
§ 3805. Penalties for false certification.
(a) Penalties.--Subject to the provisions of section 3804(b)
(relating to certification), if the department determines that a
person has provided a false certification form to a Commonwealth
entity under section 3804, the person shall be subject to the
following:
(1) A civil penalty in the amount of $250,000 or twice
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the amount of the contract, whichever is greater.
(2) Suspension of the existing contract with the
Commonwealth agency for a period of three years from the date
of the determination that the person submitted the false
certification. Following the three-year suspension period, if
the term of the contract has not expired, the Commonwealth
entity or the department may terminate the contract.
(b) Report of false certification.--
(1) The department shall report to the Attorney General
the name of any person who submits a false certification
under this chapter and the pertinent information that led to
the department's determination.
(2) No later than three years after the department makes
a determination under subsection (a), the Attorney General
shall determine whether to bring a civil action against the
person to collect the civil penalty described in subsection
(a)(1).
(3) If a court determines the person submitted a false
certification, the person shall pay all reasonable costs and
fees incurred in the civil action. Reasonable costs shall
include the reasonable costs incurred by the department in
investigating the veracity of the certification.
(4) Not more than one civil action may be brought
against a person for a false certification on the same
contract.
(c) No private right of action.--Nothing in this section may
be construed to create or authorize a private right of action.
Section 2. This act shall take effect in 60 days.
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