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 
17participate in the evaluation of proposals.

1* * *

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

4CHAPTER 35

5[(RESERVED)]

6IRAN FREE PROCUREMENT

7Section 3. Title 62 is amended by adding sections to read:

8§ 3501. Definitions.

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

11"Financial institution." The term as defined in section 14
12of the Iran Sanctions Act of 1996 (Public Law 104-172, 50 U.S.C.
13§ 1701).

14"Iran." The government of Iran or an agency or
15instrumentality of Iran.

16"Person." An individual, organization, a financial
17institution, sole proprietorship, association, corporation,
18partnership, joint venture, limited partnership, limited
19liability partnership, limited liability company or other entity
20or business association that exists for the purpose of making a
21profit or government entity that includes a multilateral
22development institution as defined in section 1701 of the
23International Financial Institutions Act (Public Law 95-118, 22
24U.S.C. 262r).

25§ 3502. Engaging in investment activities.

26A person or financial institution engages in an investment
27activity by doing any of the following:

28(1) Providing goods or services worth at least
29$20,000,000, including oil tankers or transporters and
30liquefied natural gas tankers or transporters, to the energy

1sector of Iran, or products used to construct or maintain
2pipelines used to transport oil or liquefied natural gas for
3the energy sector of Iran.

4(2) Extending at least <-$1,000,000 $20,000,000 in credit
5to a person for 45 days or more if all of the following
6apply:

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

8services to the energy sector in Iran.

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

10under section 3503 (relating to list of persons engaged
11in investment activities).

12§ 3503. List of persons engaged in investment activities.

13(a) List.--The department shall develop a list of persons
14whom the department determines are engaged in investment
15activities in Iran as described in section 3502 (relating to
16engaging in investment activities). The department shall make
17its determination based on publicly available, credible
18information. The department shall update the list every 180
19days. Ninety days prior adding a person to the list, the
20department shall do all of the following:

21(1) Provide notice to the person of the department's
22intention to add the person to the list. The notice shall
23inform the person that inclusion on the list makes the person
24ineligible to enter into a contract with a Commonwealth
25entity for goods or services worth at least $1,000,000. The
26notice shall specify that if the person ceases to engage in
27investment activities in Iran, the person may regain
28eligibility upon removal from the list.

29(2) Provide the person an opportunity to comment in
30writing to the department. The person shall maintain

1eligibility if the person demonstrates no engagement in
2investment activities in Iran.

3(b) Ineligibility of persons on list.--A person identified
4on a list under subsection (a) shall be ineligible to enter into
5a contract with a Commonwealth entity for goods or services
6worth at least $1,000,000.

7(c) Fee.--The department may assess a fee to obtain a copy
8of the list. Upon request, the department shall provide the list
9free of charge to the General Assembly or a public entity.

10(d) Retirement system investments.--A person who enters into
11a contract with the Public School Employees' Retirement System
12or the State Employees' Retirement System shall not be deemed a
13person who engages in investment activities in Iran on the basis
14of the person's investments with the retirement system.

15(e) Exception.--On a case-by-case basis, the department may
16permit a person engaging in investment activities in Iran to
17enter a contract with a Commonwealth entity for goods or
18services worth at least $1,000,000 if all of the following
19apply:

20(1) The investment activities in Iran were made before
21and were not expanded after July 1, 2010.

22(2) The person refrains from engaging in any future
23investment activities in Iran.

24(3) The department determines that the Commonwealth
25entity has no other method of obtaining the goods or services
26than entering into a contract with the person.

27§ 3504. Certification.

28The department shall make available a certification form
29indicating that a person is not on the list under section
303503(a) (relating to list of persons engaged in investment

1activities) and is eligible under this chapter to contract with
2the Commonwealth. Prior to entering into a contract with a
3Commonwealth entity, a person shall provide a certification form
4to the Commonwealth entity, unless the person is exempt under
5section 3503(e).

6§ 3505. Penalties for false certification.

7(a) Penalties.--Upon determination by the department that a
8person has provided a false certification form to a Commonwealth
9entity under section 3504 (relating to certification), the
10person shall be subject to the following:

11(1) A civil penalty in the amount of $250,000 or twice
12the amount of the investment, whichever is greater. Only one
13civil penalty may be imposed upon a person per investment.

14(2) Termination of the existing contract with the
15Commonwealth entity for a period of three years from the date
16of the determination that the person submitted the false
17certification. Following the three-year period, the
18Commonwealth entity or the department may permanently
19terminate the contract.

20(b) Report of false certification.--The department shall
21report to the Attorney General the name of the person who
22submitted the false certification and the pertinent information
23that led to the department's determination. No later than three
24years after the department makes a determination under
25subsection (a), the Attorney General shall determine whether to
26bring a civil action against the person to collect the penalty
27described in subsection (a). If a court determines the person
28submitted a false certification, the person shall pay all
29reasonable costs and fees incurred in the civil action.
30Reasonable costs shall include the reasonable costs incurred by

1the Commonwealth entity in investigating the authenticity of the
2certification. Only one civil action against the person may be
3brought for a false certification on a contract.

4(c) No private right of action.--Nothing in this section may
5be construed to create or authorize a private right of action.

6§ 3506. Expiration.

7The department shall have no obligations under this chapter
8with respect to a company engaged in business activities in Iran
9upon the occurrence of any of the following:

10(1) Iran does not appear on the List of State Sponsors
11of Terrorism.

12(2) The President or Congress of the United States,
13through legislation or executive order, declares that
14mandatory divestment of the type provided for in this chapter
15interferes with the conduct of United States foreign policy.

16Section 4. This act shall take effect as follows:

17(1) The amendment of 62 Pa.C.S. Ch. 35 shall take effect
18January 1, 2014, or immediately, whichever is later.

19(2) This section shall take effect immediately.

20(3) The remainder of this act shall take effect in 60
21days.