Trial Engrossment of Amendment A05069 to Senate Bill 1203 P.N. 1759, Regular Session 2021-2022

A05069

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

1203

Session of

2022

INTRODUCED BY ARGALL, SCHWANK, GEBHARD, MENSCH, BARTOLOTTA,

KANE, YUDICHAK, COSTA, STREET, ROBINSON, PITTMAN AND STEFANO,

APRIL 22, 2022

SENATOR ARGALL, STATE GOVERNMENT, AS AMENDED, JUNE 14, 2022

AN ACT

Preventing the Commonwealth from dealing with persons associated

with the Government of Russia or the Government of Belarus;

and imposing duties on the Treasury Department and the

Attorney General.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Short title.

This act shall be known and may be cited as the Restrictions

for Associations with Russia and Belarus Act.

Section 2. Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Commonwealth agency." As defined in 62 Pa.C.S. § 103

(relating to definitions).

"CRITICAL MATERIAL" OR "CRITICAL MINERAL." A MATERIAL OR

MINERAL THAT:

(1) HAS A SIGNIFICANT ECONOMIC IMPORTANCE FOR KEY

SECTORS OF THE STATE OR NATIONAL ECONOMY;

(2) HAS A HIGH-SUPPLY RISK DUE TO IMPORT DEPENDENCE OR

HIGH LEVELS OF CONCENTRATION IN PARTICULAR COUNTRIES OR

REGIONS; AND

(3) LACKS VIABLE SUBSTITUTES DUE TO ITS UNIQUE

PROPERTIES AND NATURE.

"Person." An individual, corporation, partnership, limited

liability company, business trust, association, estate, trust,

foundation, business entity or government entity. who is owned

or controlled by, or acting for or on behalf of, Russia or

Belarus as defined by the Office of Foreign Assets Control of

the United States Department of Treasury as of the effective

date of this definition.

Section 3. List of persons associated with Russia or Belarus.

(a) Development of list.--Within 60 days of the effective

date of this section, the Treasury Department shall, using

credible information available to the public, develop a list of

persons in this Commonwealth that, as determined by the Treasury

Department, meet any of the following criteria:

(1) Have a direct equity share with the Government of

Russia or the Government of Belarus.

(2) Have business operations that involve contracts with

or the provision of goods or services to the Government of

Russia or the Government of Belarus.

(3) Are headquartered or have a principal place of

business in Russia or Belarus.

(4) Support, assist or facilitate the Government of

Russia or the Government of Belarus in the shared campaign to

invade the sovereignty of Ukraine, either through in-kind

support or for-profit dealings. publish a list of persons.

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(b) Update of list.--The list under subsection (a) shall be

updated every 90 days annually.

Section 4. Restrictions.

If a person is found to be on the list under section 3, the

person may not:

(1) Bid on, submit a proposal for, enter into, be a

party to or renew a contact CONTRACT with a Commonwealth

agency for the provision of goods or services.

(2) Submit a proposal for, be associated with or renew a

grant issued by the Commonwealth.

(3) Submit a proposal for, receive or renew a tax credit

offered by the Commonwealth.

Section 5. Notice and challenge.

(a) Notice.--The Treasury Department shall provide to each

person on the list under section 3 notice of:

(1) The person's inclusion on the list.

(2) The restrictions under section 4.

(3) The opportunity of the person to challenge the

person's inclusion on the list, through commenting in writing

that the person does not meet any of the criteria specified

in section 3(a).

(b) Successful challenge.--If a person challenges the

person's inclusion on the list under section 3 and demonstrates

to the satisfaction of the Treasury Department that the person

does not meet any of the criteria specified in section 3(a), the

person shall not be included on the list.

person's inclusion on the list under section 3 but does not

demonstrate to the satisfaction of the Treasury Department that

the person does not meet any of the criteria specified in

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section 3(a), the Treasury Department shall forward the matter

to the Attorney General for further review.

(d) Duty of Attorney General.--

(1) If, after receiving the matter under subsection (c),

the Attorney General finds that the evidence presented by the

person is with merit, the Attorney General shall make a

recommendation to the Treasury Department that the person not

be included on the list under section 3.

(2) If, after receiving the matter under subsection (c),

the Attorney General finds that the evidence presented by the

person is without merit, the Attorney General shall determine

whether to pursue appropriate criminal or civil charges

against the person.

(a) Notice.--The Treasury Department shall publish a list of

persons on its publicly accessible Internet website under

section 3.

(b) Challenge.--A person may challenge the person's

inclusion on the list under section 3 to the Attorney General.

If the person demonstrates to the satisfaction of the Attorney

General that the person should not be included on the list the

person shall be stricken from the list.

SECTION 6. CRITICAL MATERIALS AND CRITICAL MINERALS.

THE TREASURY DEPARTMENT SHALL DEVELOP A LIST OF CRITICAL

MATERIALS AND CRITICAL MINERALS THAT ARE EXEMPTED FROM THIS ACT

THAT INCLUDE THOSE MINERALS IDENTIFIED AS CRITICAL BY THE UNITED

STATES DEPARTMENT OF THE INTERIOR AS PART OF EXECUTIVE ORDER

13817. THIS LIST SHALL BE REVIEWED ANNUALLY BY THE TREASURY

DEPARTMENT. as identified as critical by the United States

Department of the Interior under Executive Order 13817. Any

person who provides, obtains or supplies a mineral identified as

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critical minerals or materials to the Federal Government or

United States domiciled business shall, upon notification to the

Treasury Department, be removed from the list and exempted from

any restrictions imposed by this act. This list shall be

reviewed annually and updated by the Treasury Department.

Section 7. Construction.

Nothing in this act shall be construed to prohibit

transactions authorized by the Federal Government or under

Federal law.

Section 6 7 8. Effective date.

This act shall take effect in 30 60 days.

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