senate Bill S6462

Relates to the application of the Iranian energy sector divestment act to public authorities and SUNY and CUNY

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 13 / Feb / 2012
    • REFERRED TO FINANCE
  • 01 / May / 2012
    • 1ST REPORT CAL.672
  • 02 / May / 2012
    • 2ND REPORT CAL.
  • 07 / May / 2012
    • ADVANCED TO THIRD READING
  • 09 / May / 2012
    • SUBSTITUTED BY A9224

Summary

Provides for the application of the Iranian energy sector divestment act to public authorities and SUNY and CUNY; prohibits certain contracts.

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Bill Details

See Assembly Version of this Bill:
A9224
Versions:
S6462
Legislative Cycle:
2011-2012
Law Section:
Public Authorities Law
Laws Affected:
Add §2879-c, Pub Auth L; amd §160, St Fin L

Sponsor Memo

BILL NUMBER:S6462

TITLE OF BILL: An act to amend the public authorities law and the state
finance law, in relation to the application of the Iranian energy sector
divestment act to certain entities

PURPOSE OR GENERAL IDEA OF THE BILL: This bill would impose limitations
on vendors that contribute to the Iranian energy sector and seek
contracts with the state and local authorities.

SUMMARY OF SPECIFIC PROVISIONS: This bill would prohibit entities that
invest in the Iranian energy sector from receiving contracts from state
and local public authorities, interstate and international authorities
and their subsidiaries, unless the entity has certified that it does not
have or has ceased or is taking steps to cease such investments, or the
state is unable to procure the needed services or commodities elsewhere.

In addition, this bill also makes the state university of New York and
the city university of New York subject to section 165-a of the State
Finance Law.

JUSTIFICATION: This bill is based on the federal Comprehensive Iran
Sanctions, Accountability, and Divestment Act of 2010, which allows
state and local governments to divest assets and prohibit the investment
of state or local assets in certain companies that either invest or
provide credit in the Iranian energy sector. Allowing the Iranian
government to develop nuclear weapons would post a threat to the United
States and the safety of our allies in the Middle East. Therefore, it is
important for New York State to follow the lead of the federal govern-
ment in seeking to halt Iran's nuclear program.

PRIOR LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: Minimal.

EFFECTIVE DATE: Takes effect the same date and same manner as Chapter 1
of the laws of 2012.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6462

                            I N  S E N A T E

                            February 13, 2012
                               ___________

Introduced  by  Sen.  SKELOS -- read twice and ordered printed, and when
  printed to be committed to the Committee on Finance

AN ACT to amend the public authorities law and the state finance law, in
  relation to the application of the Iranian  energy  sector  divestment
  act to certain entities

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The public authorities law  is  amended  by  adding  a  new
section 2879-c to read as follows:
  S  2879-C.  IRANIAN  ENERGY  SECTOR  DIVESTMENT.  1.  AS  USED IN THIS
SECTION:
  A. "ENERGY SECTOR" SHALL HAVE THE SAME MEANING AS DEFINED IN PARAGRAPH
(A) OF SUBDIVISION ONE OF SECTION ONE HUNDRED SIXTY-FIVE-A OF THE  STATE
FINANCE LAW.
  B.  "FINANCIAL  INSTITUTION" SHALL HAVE THE SAME MEANING AS DEFINED IN
PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION ONE HUNDRED SIXTY-FIVE-A  OF
THE STATE FINANCE LAW.
  C.  "INVESTMENT"  SHALL  HAVE THE SAME MEANING AS DEFINED IN PARAGRAPH
(C) OF SUBDIVISION ONE OF SECTION ONE HUNDRED SIXTY-FIVE-A OF THE  STATE
FINANCE LAW.
  D.  "IRAN"  SHALL HAVE THE SAME MEANING AS DEFINED IN PARAGRAPH (D) OF
SUBDIVISION ONE OF SECTION ONE HUNDRED SIXTY-FIVE-A OF THE STATE FINANCE
LAW.
  E. "PERSON" SHALL HAVE THE SAME MEANING AS DEFINED IN PARAGRAPH (E) OF
SUBDIVISION ONE OF SECTION ONE HUNDRED SIXTY-FIVE-A OF THE STATE FINANCE
LAW.
  2. FOR PURPOSES OF THIS SECTION, A PERSON ENGAGES IN INVESTMENT ACTIV-
ITIES IN IRAN IF:
  A. THE PERSON PROVIDES GOODS OR SERVICES OF TWENTY MILLION DOLLARS  OR
MORE  IN THE ENERGY SECTOR OF IRAN, INCLUDING A PERSON THAT PROVIDES OIL
OR LIQUEFIED NATURAL GAS TANKERS, OR PRODUCTS USED TO CONSTRUCT OR MAIN-
TAIN PIPELINES USED TO TRANSPORT OIL OR LIQUEFIED NATURAL GAS,  FOR  THE
ENERGY SECTOR OF IRAN; OR

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14401-01-2

S. 6462                             2

  B.  THE  PERSON IS A FINANCIAL INSTITUTION THAT EXTENDS TWENTY MILLION
DOLLARS OR MORE IN CREDIT TO ANOTHER  PERSON,  FOR  FORTY-FIVE  DAYS  OR
MORE, IF THAT PERSON WILL USE THE CREDIT TO PROVIDE GOODS OR SERVICES IN
THE ENERGY SECTOR IN IRAN.
  3.  NOTWITHSTANDING  ANY  OTHER PROVISION OF THIS CHAPTER OR ANY OTHER
LAW TO THE CONTRARY, NO STATE OR LOCAL PUBLIC AUTHORITY OR AN INTERSTATE
OR INTERNATIONAL AUTHORITY, OR SUBSIDIARY THEREOF, SHALL ENTER INTO  ANY
CONTRACT FOR WORK OR SERVICES PERFORMED OR TO BE PERFORMED OR GOODS SOLD
OR TO BE SOLD, WITH A PERSON THAT IS IDENTIFIED ON A LIST CREATED PURSU-
ANT  TO PARAGRAPH (B) OF SUBDIVISION THREE OF SECTION ONE HUNDRED SIXTY-
FIVE-A OF THE STATE FINANCE LAW  AS  A  PERSON  ENGAGING  IN  INVESTMENT
ACTIVITIES IN IRAN AS DESCRIBED IN SUBDIVISION TWO OF THIS SECTION.
  4.  NOTWITHSTANDING  ANY  OTHER PROVISION OF THIS CHAPTER OR ANY OTHER
LAW TO THE CONTRARY, EVERY CONTRACT ENTERED INTO WITH A STATE  OR  LOCAL
PUBLIC AUTHORITY OR AN INTERSTATE OR INTERNATIONAL AUTHORITY FOR WORK OR
SERVICES PERFORMED OR TO BE PERFORMED OR GOODS SOLD OR TO BE SOLD, SHALL
CONTAIN THE FOLLOWING STATEMENT SUBSCRIBED BY AND AFFIRMED BY THE PERSON
ENTERING INTO THE CONTRACT AS TRUE UNDER THE PENALTIES OF PERJURY:
  A.  "BY  SIGNING THIS CONTRACT, EACH PERSON AND EACH PERSON SIGNING ON
BEHALF OF ANY OTHER PARTY CERTIFIES, AND IN THE CASE OF A JOINT  BID  OR
PARTNERSHIP  EACH  PARTY  THERETO  CERTIFIES AS TO ITS OWN ORGANIZATION,
UNDER PENALTY OF PERJURY, THAT TO THE BEST OF ITS KNOWLEDGE  AND  BELIEF
THAT EACH PERSON IS NOT ON THE LIST CREATED PURSUANT TO PARAGRAPH (B) OF
SUBDIVISION 3 OF SECTION 165-A OF THE STATE FINANCE LAW."
  B.  NOTWITHSTANDING  PARAGRAPH A OF THIS SUBDIVISION, THE STATEMENT OF
NON-INVESTMENT IN THE IRANIAN ENERGY SECTOR MAY BE  SUBMITTED  ELECTRON-
ICALLY.
  C.  A  CONTRACT  SHALL  NOT  BE  CONSIDERED  NOR SHALL ANY CONTRACT BE
ENTERED INTO WHERE THE CONDITION SET FORTH IN PARAGRAPH A OF THIS SUBDI-
VISION HAS NOT BEEN COMPLIED WITH; PROVIDED, HOWEVER,  THAT  IF  IN  ANY
CASE  THE  PERSON  CANNOT  MAKE  THE FOREGOING CERTIFICATION, THE PERSON
SHALL SO STATE AND SHALL FURNISH WITH THE CONTRACT  A  SIGNED  STATEMENT
WHICH  SETS FORTH IN DETAIL THE REASONS THEREFOR. A PUBLIC AUTHORITY MAY
AWARD OR ENTER INTO A CONTRACT WITH A PERSON WHO CANNOT MAKE THE CERTIF-
ICATION PURSUANT TO PARAGRAPH A OF THIS SUBDIVISION  ON  A  CASE-BY-CASE
BASIS IF:
  (1)  THE  INVESTMENT ACTIVITIES IN IRAN WERE MADE BEFORE THE EFFECTIVE
DATE OF THIS SECTION, THE INVESTMENT ACTIVITIES IN IRAN  HAVE  NOT  BEEN
EXPANDED  OR  RENEWED  AFTER THE EFFECTIVE DATE OF THIS SECTION, AND THE
PERSON HAS ADOPTED, PUBLICIZED, AND IS IMPLEMENTING  A  FORMAL  PLAN  TO
CEASE  THE INVESTMENT ACTIVITIES IN IRAN AND TO REFRAIN FROM ENGAGING IN
ANY NEW INVESTMENTS IN IRAN; OR
  (2) THE PUBLIC AUTHORITY MAKES  A  DETERMINATION  THAT  THE  GOODS  OR
SERVICES ARE NECESSARY FOR THE PUBLIC AUTHORITY TO PERFORM ITS FUNCTIONS
AND THAT, ABSENT SUCH AN EXEMPTION, THE PUBLIC AUTHORITY WOULD BE UNABLE
TO  OBTAIN THE GOODS OR SERVICES FOR WHICH THE CONTRACT IS OFFERED. SUCH
DETERMINATION SHALL BE MADE IN WRITING AND SHALL BE A PUBLIC DOCUMENT.
  S 2. Subdivision 9 of section 160 of the state finance law,  as  added
by chapter 83 of the laws of 1995, is amended to read as follows:
  9.  "State  agency"  or  "state agencies" means all state departments,
boards, commissions, offices or institutions but excludes, however,  for
the  purposes of subdivision five of section three hundred fifty-five of
the education law, the state university of New York  and  excludes,  for
the  purposes  of subdivision a of section sixty-two hundred eighteen of
the education law, the city university of New York;  PROVIDED,  HOWEVER,
THAT  THE  STATE  UNIVERSITY  OF NEW YORK AND THE CITY UNIVERSITY OF NEW

S. 6462                             3

YORK  SHALL  BE  SUBJECT  TO  THE  PROVISIONS  OF  SECTION  ONE  HUNDRED
SIXTY-FIVE-A  OF  THIS ARTICLE. Furthermore, such term shall not include
the legislature or the judiciary.
  S  3.  This  act  shall  take  effect on the same date and in the same
manner as chapter 1 of the laws of 2012, takes effect.

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