senate Bill S5917A

Signed By Governor
2011-2012 Legislative Session

Relates to enacting the Iran divestment act of 2012

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Archive: Last Bill Status Via A8668 - Signed by Governor


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 13, 2012 signed chap.1
Jan 11, 2012 delivered to governor
Jan 09, 2012 returned to assembly
passed senate
3rd reading cal.8
substituted for s5917a
Jan 09, 2012 substituted by a8668a
ordered to third reading cal.8
reported and committed to rules
Jan 04, 2012 print number 5917a
amend and recommit to finance
referred to finance
Nov 04, 2011 referred to finance

Votes

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Jan 9, 2012 - Finance committee Vote

S5917A
34
0
committee
34
Aye
0
Nay
1
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Finance committee vote details

Jan 9, 2012 - Rules committee Vote

S5917A
23
1
committee
23
Aye
1
Nay
0
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Rules committee vote details

Bill Amendments

Original
A (Active)
Original
A (Active)

Co-Sponsors

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S5917 - Bill Details

See Assembly Version of this Bill:
A8668A
Law Section:
State Finance Law
Laws Affected:
Add §165-a, St Fin L; add §103-g, Gen Muni L

S5917 - Bill Texts

view summary

Enacts the Iran divestment act of 2012 to prevent public investment in companies operating in Iran's energy sector with investments that have the result of directly or indirectly supporting the efforts of the Government of Iran to achieve nuclear weapons capability.

view sponsor memo
BILL NUMBER:S5917

TITLE OF BILL:
An act
to amend the state finance law and the general municipal law,
in relation to enacting the Iran
divestment act of 2012

PURPOSE:
This bill would impose limitations on vendors that contribute to the
Iranian energy sector and seek contracts with the state and local
governments.

SUMMARY OF PROVISIONS:
This bill would prohibit entities that invest in the Iranian energy
sector from receiving state contracts 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. The Office of General Services (OGS) would be
required to develop a list of entities that invest in the Iranian
energy sector. OGS would have to notify those who are on the list
that they are prohibited from receiving state contracts and provide
them with an opportunity to appeal.

In addition, the bill would require local government contractors to
certify that they are not investing in the Iranian energy sector in
order to receive local government contracts.

EXISTING LAW:
None.

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 government in seeking to halt Iran's nuclear program.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
To be determined.

LOCAL FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
90 days after enactment.


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

                                  5917

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            November 4, 2011
                               ___________

Introduced  by  Sens. SKELOS, ALESI, BALL, BONACIC, DeFRANCISCO, FARLEY,
  FLANAGAN, FUSCHILLO, GALLIVAN, GOLDEN, GRIFFO, GRISANTI, HANNON, JOHN-
  SON, LANZA, LARKIN,  LAVALLE,  LIBOUS,  LITTLE,  MARCELLINO,  MARTINS,
  MAZIARZ,  McDONALD,  NOZZOLIO,  O'MARA,  RANZENHOFER, RITCHIE, ROBACH,
  SALAND, SEWARD, YOUNG, ZELDIN -- read twice and ordered  printed,  and
  when printed to be committed to the Committee on Finance

AN  ACT to amend the state finance law and the general municipal law, in
  relation to enacting the Iran divestment act of 2012

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

  Section  1.  This  act  shall  be  known and may be cited as the "Iran
Divestment Act of 2012".
  S 2. The legislature hereby finds and declares all of the following:
  (a) In imposing United States sanctions  on  Iran,  Congress  and  the
President  have  determined  that  the illicit nuclear activities of the
Government of Iran, combined  with  its  development  of  unconventional
weapons and ballistic missiles, and its support of international terror-
ism,  represent  a  serious threat to the security of the United States,
Israel, and other United States allies in Europe, the Middle  East,  and
around the world.
  (b)  The  International  Atomic  Energy  Agency  has repeatedly called
attention to Iran's unlawful nuclear activities, and, as a  result,  the
United  Nations  Security  Council  has  adopted  a  range  of sanctions
designed to encourage the government of Iran to cease  those  activities
and  comply  with its obligations under the Treaty on the Non-Prolifera-
tion of Nuclear Weapons (commonly known as the  "Nuclear  Non-Prolifera-
tion Treaty").
  (c)  On  July  1,  2010,  President  Barack Obama signed into law H.R.
2194, the "Comprehensive Iran Sanctions, Accountability, and  Divestment
Act of 2010" (Public Law 111-195), which expressly authorizes states and
local  governments to prevent investment in, including prohibiting entry

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13338-07-1

S. 5917                             2

into or renewing contracts with, companies operating  in  Iran's  energy
sector  with  investments that have the result of directly or indirectly
supporting the efforts of the government  of  Iran  to  achieve  nuclear
weapons capability.
  (d) The serious and urgent nature of the threat from Iran demands that
states,  local  governments, and private institutions work together with
the federal government and American allies  to  do  everything  possible
diplomatically,  politically,  and  economically  to  prevent  Iran from
acquiring a nuclear weapons capability.
  (e) The human rights situation in Iran has  steadily  deteriorated  as
punctuated   by   transparently  fraudulent  elections  and  the  brutal
repression and murder, arbitrary arrests, and show  trials  of  peaceful
dissidents.
  (f)  The concerns of the state of New York regarding Iran are strictly
the result of the actions of the government of Iran and  should  not  be
construed as enmity towards the Iranian people.
  (g)  In  order  to effectively address the need for the governments of
this state to respond to the policies of  Iran  in  a  uniform  fashion,
prohibiting  contracts  with persons engaged in investment activities in
the energy sector of Iran must be accomplished on a statewide basis.
  (h) It is the intent of the legislature  to  implement  the  authority
granted  under Section 202 of the Comprehensive Iran Sanctions, Account-
ability, and Divestment Act of 2010 (Public Law 111-195).
  S 3. The state finance law is amended by adding a new section 165-a to
read as follows:
  S 165-A. IRAN DIVESTMENT.  1. AS USED IN THIS SECTION,  THE  FOLLOWING
DEFINITIONS SHALL APPLY:
  (A)  "ENERGY  SECTOR" OF IRAN MEANS ACTIVITIES TO DEVELOP PETROLEUM OR
NATURAL GAS RESOURCES OR NUCLEAR POWER IN IRAN.
  (B) "FINANCIAL INSTITUTION" MEANS THE TERM AS USED IN  SECTION  14  OF
THE  IRAN  SANCTIONS  ACT  OF  1996  (PUBLIC LAW 104-172; 50 U.S.C. 1701
NOTE).
  (C) "INVESTMENT" MEANS A COMMITMENT OR CONTRIBUTION OF FUNDS OR  PROP-
ERTY, A LOAN OR OTHER EXTENSION OF CREDIT; AND THE ENTRY INTO OR RENEWAL
OF A CONTRACT FOR GOODS OR SERVICES.
  (D)  "IRAN"  INCLUDES THE GOVERNMENT OF IRAN AND ANY AGENCY OR INSTRU-
MENTALITY OF IRAN.
  (E) "PERSON" MEANS ANY OF THE FOLLOWING:
  (1) A NATURAL PERSON, CORPORATION, COMPANY, LIMITED LIABILITY COMPANY,
BUSINESS ASSOCIATION, PARTNERSHIP, SOCIETY, TRUST, OR ANY OTHER  NONGOV-
ERNMENTAL ENTITY, ORGANIZATION, OR GROUP.
  (2)  ANY  GOVERNMENTAL  ENTITY  OR  INSTRUMENTALITY  OF  A GOVERNMENT,
INCLUDING A MULTILATERAL DEVELOPMENT INSTITUTION, AS DEFINED IN  SECTION
1701(C)(3)  OF  THE  INTERNATIONAL FINANCIAL INSTITUTIONS ACT (22 U.S.C.
262R(C)(3)).
  (3) ANY SUCCESSOR, SUBUNIT, PARENT ENTITY, OR SUBSIDIARY  OF,  OR  ANY
ENTITY  UNDER  COMMON OWNERSHIP OR CONTROL WITH, ANY ENTITY DESCRIBED IN
SUBPARAGRAPH ONE OR TWO OF THIS PARAGRAPH.
  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

S. 5917                             3

  (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 AND IS IDENTIFIED ON A LIST  CREATED  PURSUANT
TO PARAGRAPH (B) OF SUBDIVISION THREE OF THIS SECTION AS A PERSON ENGAG-
ING  IN  INVESTMENT  ACTIVITIES IN IRAN AS DESCRIBED IN PARAGRAPH (A) OF
THIS SUBDIVISION.
  3. (A) (1) A PERSON THAT IS IDENTIFIED ON A LIST CREATED  PURSUANT  TO
PARAGRAPH  (B)  OF  THIS  SUBDIVISION AS A PERSON ENGAGING IN INVESTMENT
ACTIVITIES IN IRAN AS DESCRIBED IN PARAGRAPH (A) OF SUBDIVISION  TWO  OF
THIS  SECTION, SHALL NOT BE DEEMED A RESPONSIVE BIDDER OR OFFERER PURSU-
ANT TO SECTION ONE HUNDRED SIXTY-THREE OF THIS ARTICLE.
  (2) A  PERSON  THAT  ENGAGES  IN  INVESTMENT  ACTIVITIES  IN  IRAN  AS
DESCRIBED  IN PARAGRAPH (B) OF SUBDIVISION TWO OF THIS SECTION SHALL NOT
BE DEEMED A RESPONSIVE BIDDER OR OFFERER PURSUANT TO SECTION ONE HUNDRED
SIXTY-THREE OF THIS ARTICLE.
  (B) (1) NOT LATER THAN ONE HUNDRED TWENTY  DAYS  AFTER  THE  EFFECTIVE
DATE OF THIS SECTION, THE COMMISSIONER SHALL, USING CREDIBLE INFORMATION
AVAILABLE  TO  THE  PUBLIC,  DEVELOP,  OR CONTRACT TO DEVELOP, A LIST OF
PERSONS IT  DETERMINES  ENGAGE  IN  INVESTMENT  ACTIVITIES  IN  IRAN  AS
DESCRIBED IN PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION.
  (2)  THE  COMMISSIONER  SHALL UPDATE THE LIST EVERY ONE HUNDRED EIGHTY
DAYS.
  (3) BEFORE FINALIZING AN INITIAL LIST PURSUANT TO SUBPARAGRAPH ONE  OF
THIS  PARAGRAPH  OR AN UPDATED LIST PURSUANT TO SUBPARAGRAPH TWO OF THIS
PARAGRAPH, THE COMMISSIONER SHALL DO  ALL  OF  THE  FOLLOWING  BEFORE  A
PERSON IS INCLUDED ON THE LIST:
  (A)  PROVIDE  NINETY DAYS' WRITTEN NOTICE OF THE COMMISSIONER'S INTENT
TO INCLUDE THE PERSON ON THE LIST. THE NOTICE SHALL  INFORM  THE  PERSON
THAT INCLUSION ON THE LIST WOULD MAKE THE PERSON A NON-RESPONSIVE BIDDER
OR  OFFERER PURSUANT TO SECTION ONE HUNDRED SIXTY-THREE OF THIS ARTICLE.
THE NOTICE SHALL SPECIFY THAT THE PERSON, IF IT CEASES ITS ENGAGEMENT IN
INVESTMENT ACTIVITIES IN IRAN AS DESCRIBED IN PARAGRAPH (A) OF  SUBDIVI-
SION TWO OF THIS SECTION, MAY BE REMOVED FROM THE LIST.
  (B)  THE  COMMISSIONER  SHALL  PROVIDE A PERSON WITH AN OPPORTUNITY TO
COMMENT IN WRITING THAT IT IS NOT ENGAGED IN  INVESTMENT  ACTIVITIES  IN
IRAN.  IF THE PERSON DEMONSTRATES TO THE COMMISSIONER THAT THE PERSON IS
NOT ENGAGED IN INVESTMENT ACTIVITIES IN IRAN AS DESCRIBED  IN  PARAGRAPH
(A) OF SUBDIVISION TWO OF THIS SECTION, THE PERSON SHALL NOT BE INCLUDED
ON THE LIST.
  (4)  THE  COMMISSIONER  SHALL  MAKE  EVERY EFFORT TO AVOID ERRONEOUSLY
INCLUDING A PERSON ON THE LIST.
  (5) A PERSON THAT HAS A CONTRACT WITH THE NEW  YORK  STATE  AND  LOCAL
EMPLOYEES'  RETIREMENT  SYSTEM,  THE NEW YORK STATE AND LOCAL POLICE AND
FIRE RETIREMENT SYSTEM, OR  THE  NEW  YORK  STATE  TEACHERS'  RETIREMENT
SYSTEM,  SHALL  NOT BE DEEMED A PERSON THAT ENGAGES IN INVESTMENT ACTIV-
ITIES IN IRAN AS DESCRIBED BY SUBDIVISION TWO OF  THIS  SECTION  ON  THE
BASIS OF THOSE INVESTMENTS WITH SUCH RETIREMENT SYSTEMS, PROVIDED HOWEV-
ER,  THAT  NOTHING IN THIS SUBPARAGRAPH SHALL PREVENT THE NEW YORK STATE
AND LOCAL EMPLOYEES' RETIREMENT SYSTEM, NEW YORK STATE AND LOCAL  POLICE
AND  FIRE  RETIREMENT  SYSTEM OR THE NEW YORK STATE TEACHERS' RETIREMENT
SYSTEM FROM PURSUING A POLICY OF DIVESTMENT IN THE IRANIAN ECONOMY.
  (C) NOTWITHSTANDING PARAGRAPH (A) OF THIS SUBDIVISION, A STATE  AGENCY
MAY  PERMIT  A  PERSON  ENGAGED  IN  INVESTMENT  ACTIVITIES  IN  IRAN AS
DESCRIBED BY SUBDIVISION TWO OF THIS SECTION TO BE DEEMED  A  RESPONSIVE
BIDDER OR OFFERER, ON A CASE-BY-CASE BASIS WITH A STATE AGENCY IF:

S. 5917                             4

  (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 STATE AGENCY MAKES A PUBLIC FINDING THAT  THE  COMMODITIES  OR
SERVICES ARE NECESSARY FOR THE STATE AGENCY TO PERFORM ITS FUNCTIONS AND
THAT,  ABSENT  SUCH  AN  EXEMPTION,  THE STATE AGENCY WOULD BE UNABLE TO
OBTAIN THE COMMODITIES OR SERVICES FOR WHICH THE  CONTRACT  IS  OFFERED.
SUCH FINDING SHALL BE ENTERED INTO THE PROCUREMENT RECORD.
  4.  A  STATE  AGENCY  SHALL  REQUIRE  A  PERSON  THAT SUBMITS A BID OR
PROPOSAL, OR OTHERWISE PROPOSES TO ENTER INTO OR RENEW A CONTRACT WITH A
STATE AGENCY WITH RESPECT TO A CONTRACT FOR COMMODITIES OR  SERVICES  TO
CERTIFY,  AT  THE  TIME THE BID IS SUBMITTED OR THE CONTRACT IS RENEWED,
THAT THE PERSON IS NOT IDENTIFIED ON A LIST CREATED  PURSUANT  TO  PARA-
GRAPH  (B)  OF SUBDIVISION THREE OF THIS SECTION AS A PERSON ENGAGING IN
INVESTMENT ACTIVITIES IN IRAN AS DESCRIBED IN PARAGRAPH (A) OF  SUBDIVI-
SION  TWO  OF THIS SECTION, OR AS A PERSON DESCRIBED IN PARAGRAPH (B) OF
SUCH SUBDIVISION, AS APPLICABLE. A STATE AGENCY  SHALL  INCLUDE  CERTIF-
ICATION INFORMATION IN THE PROCUREMENT RECORD.
  5.  UPON  RECEIVING INFORMATION THAT A PERSON WHO HAS MADE THE CERTIF-
ICATION REQUIRED BY SUBDIVISION FOUR OF THIS  SECTION  IS  IN  VIOLATION
THEREOF,  THE  STATE  AGENCY SHALL REVIEW SUCH INFORMATION AND OFFER THE
PERSON AN OPPORTUNITY TO RESPOND. IF  THE  STATE  AGENCY  FINDS  THAT  A
VIOLATION  HAS OCCURRED, IT SHALL TAKE SUCH ACTION AS MAY BE APPROPRIATE
AND PROVIDED FOR BY LAW, RULE OR CONTRACT, INCLUDING,  BUT  NOT  LIMITED
TO,  IMPOSING  SANCTIONS,  SEEKING  COMPLIANCE,  RECOVERING  DAMAGES  OR
DECLARING THE CONTRACTOR IN DEFAULT.
  6. THE COMMISSIONER SHALL REPORT TO THE GOVERNOR AND  THE  LEGISLATURE
ANNUALLY  ON  OR  BEFORE  OCTOBER  FIRST,  ON  THE STATUS OF THE FEDERAL
"COMPREHENSIVE IRAN SANCTIONS, ACCOUNTABILITY,  AND  DIVESTMENT  ACT  OF
2010"  (PUBLIC  LAW 111-195), "THE IRAN DIVESTMENT ACT OF 2012", AND ANY
RULES OR REGULATIONS ADOPTED THEREUNDER.
  S 4. The general municipal law is amended  by  adding  a  new  section
103-g to read as follows:
  S  103-G.  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:

S. 5917                             5

  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
  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.  A. A PERSON THAT IS IDENTIFIED ON A LIST CREATED PURSUANT TO PARA-
GRAPH (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 PARAGRAPH A OF SUBDIVISION  TWO  OF  THIS  SECTION,
SHALL  NOT BE DEEMED A RESPONSIBLE BIDDER OR OFFERER PURSUANT TO SECTION
ONE HUNDRED THREE OF THIS ARTICLE.
  B. A PERSON THAT ENGAGES IN INVESTMENT ACTIVITIES IN IRAN AS DESCRIBED
IN PARAGRAPH B OF SUBDIVISION TWO OF THIS SECTION SHALL NOT BE DEEMED  A
RESPONSIBLE  BIDDER  OR OFFERER PURSUANT TO SECTION ONE HUNDRED THREE OF
THIS ARTICLE.
  4. EVERY BID OR PROPOSAL HEREAFTER MADE TO A POLITICAL SUBDIVISION  OF
THE  STATE  OR  ANY  PUBLIC DEPARTMENT, AGENCY OR OFFICIAL THEREOF WHERE
COMPETITIVE BIDDING IS REQUIRED BY STATUTE, RULE,  REGULATION  OR  LOCAL
LAW,  FOR WORK OR SERVICES PERFORMED OR TO BE PERFORMED OR GOODS SOLD OR
TO BE SOLD, SHALL CONTAIN THE  FOLLOWING  STATEMENT  SUBSCRIBED  BY  THE
BIDDER AND AFFIRMED BY SUCH BIDDER AS TRUE UNDER THE PENALTIES OF PERJU-
RY:
  A.  "BY SUBMISSION OF THIS BID, EACH BIDDER AND EACH PERSON SIGNING ON
BEHALF OF ANY BIDDER CERTIFIES, AND IN THE CASE  OF  A  JOINT  BID  EACH
PARTY  THERETO  CERTIFIES  AS  TO ITS OWN ORGANIZATION, UNDER PENALTY OF
PERJURY, THAT TO THE BEST OF ITS KNOWLEDGE AND BELIEF THAT  EACH  BIDDER
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  IN  ACCORDANCE WITH THE PROVISIONS OF SUBDIVISION ONE OF SECTION
ONE HUNDRED THREE OF THIS ARTICLE.
  C. A BID SHALL NOT BE CONSIDERED FOR AWARD NOR SHALL ANY AWARD BE MADE
WHERE THE CONDITION SET FORTH IN PARAGRAPH A OF THIS SUBDIVISION HAS NOT
BEEN COMPLIED WITH; PROVIDED, HOWEVER, THAT IF IN ANY  CASE  THE  BIDDER
CANNOT  MAKE  THE FOREGOING CERTIFICATION, THE BIDDER SHALL SO STATE AND
SHALL FURNISH WITH THE BID A SIGNED STATEMENT WHICH SETS FORTH IN DETAIL
THE REASONS THEREFOR. A POLITICAL SUBDIVISION  MAY  AWARD  A  BID  TO  A
BIDDER WHO CANNOT MAKE THE CERTIFICATION 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 POLITICAL SUBDIVISION MAKES A PUBLIC FINDING THAT THE GOODS OR
SERVICES ARE NECESSARY FOR THE  POLITICAL  SUBDIVISION  TO  PERFORM  ITS
FUNCTIONS  AND THAT, ABSENT SUCH AN EXEMPTION, THE POLITICAL SUBDIVISION
WOULD BE UNABLE TO OBTAIN THE GOODS OR SERVICES FOR WHICH  THE  CONTRACT
IS OFFERED.  SUCH FINDING SHALL BE MADE IN WRITING AND SHALL BE A PUBLIC
DOCUMENT.

S. 5917                             6

  S  5.  The  secretary of state shall submit to the attorney general of
the United States a written notice describing this act  within  30  days
after the effective date of this act.
  S 6. Severability. If any clause, sentence, paragraph, section or part
of  this act shall be adjudged by any court of competent jurisdiction to
be invalid and after exhaustion of  all  further  judicial  review,  the
judgment  shall  not affect, impair or invalidate the remainder thereof,
but shall be confined in its operation to the  clause,  sentence,  para-
graph,  section or part of this act directly involved in the controversy
in which the judgment shall have been rendered.
  S 7. This act shall take effect on the ninetieth day  after  it  shall
have  become  a  law; provided, however, that effective immediately, the
addition, amendment and/or repeal of any rule  or  regulation  necessary
for  the implementation of this act on its effective date are authorized
and directed to be made and completed on or before such effective date.

Co-Sponsors

view additional co-sponsors

S5917A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A8668A
Law Section:
State Finance Law
Laws Affected:
Add §165-a, St Fin L; add §103-g, Gen Muni L

S5917A (ACTIVE) - Bill Texts

view summary

Enacts the Iran divestment act of 2012 to prevent public investment in companies operating in Iran's energy sector with investments that have the result of directly or indirectly supporting the efforts of the Government of Iran to achieve nuclear weapons capability.

view sponsor memo
BILL NUMBER:S5917A

TITLE OF BILL:
An act
to amend the state finance law and the general municipal law,
in relation to enacting the Iran
divestment act of 2012

PURPOSE:
This bill would impose limitations on vendors that contribute to the
Iranian energy sector and seek contracts with the state and local
governments.

SUMMARY OF PROVISIONS:
This bill would prohibit entities that invest in the Iranian energy
sector from receiving state contracts 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. The Office of General Services (OGS) would be
required to develop a list of entities that invest in the Iranian
energy sector. OGS would have to notify those who are on the list
that they are prohibited from receiving state contracts and provide
them with an opportunity to appeal.

In addition, the bill would require local government contractors to
certify that they are not investing in the Iranian energy sector in
order to receive local government contracts.

EXISTING LAW:
None.

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 government in seeking to halt Iran's nuclear program.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
To be determined.

LOCAL FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
90 days after enactment.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5917--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            November 4, 2011
                               ___________

Introduced  by  Sens. SKELOS, ALESI, BALL, BONACIC, DeFRANCISCO, FARLEY,
  FLANAGAN, FUSCHILLO, GALLIVAN, GOLDEN, GRIFFO, GRISANTI, HANNON, JOHN-
  SON, LANZA, LARKIN,  LAVALLE,  LIBOUS,  LITTLE,  MARCELLINO,  MARTINS,
  MAZIARZ,  McDONALD,  NOZZOLIO,  O'MARA,  RANZENHOFER, RITCHIE, ROBACH,
  SALAND, SEWARD, YOUNG, ZELDIN, CARLUCCI, OPPENHEIMER -- read twice and
  ordered printed, and when printed to be committed to the Committee  on
  Finance  --  committee  discharged, bill amended, ordered reprinted as
  amended and recommitted to said committee

AN ACT to amend the state finance law and the general municipal law,  in
  relation to enacting the Iran divestment act of 2012

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

  Section 1. This act shall be known and  may  be  cited  as  the  "Iran
Divestment Act of 2012".
  S 2. The legislature hereby finds and declares all of the following:
  (a) Congress and the President have determined that the illicit nucle-
ar  activities  of the Government of Iran, combined with its development
of unconventional weapons and ballistic missiles,  and  its  support  of
international  terrorism,  represent a serious threat to the security of
the United States, Israel, and other United States allies in Europe, the
Middle East, and around the world.
  (b) The International  Atomic  Energy  Agency  has  repeatedly  called
attention  to  Iran's unlawful nuclear activities, and, as a result, the
United Nations  Security  Council  has  adopted  a  range  of  sanctions
designed  to  encourage the government of Iran to cease those activities
and comply with its obligations under the Treaty on  the  Non-Prolifera-
tion  of  Nuclear Weapons (commonly known as the "Nuclear Non-Prolifera-
tion Treaty").
  (c) On July 1, 2010, President  Barack  Obama  signed  into  law  H.R.
2194,  the "Comprehensive Iran Sanctions, Accountability, and Divestment
Act of 2010" (Public Law 111-195), which expressly authorizes states and

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13338-13-1

S. 5917--A                          2

local governments to prevent investment in, including prohibiting  entry
into  or  renewing  contracts with, companies operating in Iran's energy
sector with investments that have the result of directly  or  indirectly
supporting  the  efforts  of  the  government of Iran to achieve nuclear
weapons capability.
  (d) The serious and urgent nature of the threat from Iran demands that
states, local governments, and private institutions work  together  with
the  federal  government  and  American allies to do everything possible
diplomatically, politically,  and  economically  to  prevent  Iran  from
acquiring a nuclear weapons capability.
  (e)  Respect  for  human  rights  in Iran has steadily deteriorated as
demonstrated  by  transparently  fraudulent  elections  and  the  brutal
repression  and  murder,  arbitrary arrests, and show trials of peaceful
dissidents.
  (f) The concerns of the state of New York regarding Iran are  strictly
the  result  of  the actions of the government of Iran and should not be
construed as enmity towards the Iranian people.
  (g) In order to effectively address the need for  the  governments  of
this  state  to  respond  to  the policies of Iran in a uniform fashion,
prohibiting contracts with persons engaged in investment  activities  in
the energy sector of Iran must be accomplished on a statewide basis.
  (h) It is the intent of the legislature to fully implement the author-
ity  granted  under  Section  202  of  the Comprehensive Iran Sanctions,
Accountability, and Divestment Act of 2010 (Public Law 111-195).
  S 3. The state finance law is amended by adding a new section 165-a to
read as follows:
  S 165-A. IRAN DIVESTMENT.  1. AS USED IN THIS SECTION,  THE  FOLLOWING
DEFINITIONS SHALL APPLY:
  (A)  "ENERGY  SECTOR" OF IRAN MEANS ACTIVITIES TO DEVELOP PETROLEUM OR
NATURAL GAS RESOURCES OR NUCLEAR POWER IN IRAN.
  (B) "FINANCIAL INSTITUTION" MEANS THE TERM AS USED IN  SECTION  14  OF
THE  IRAN  SANCTIONS  ACT  OF  1996  (PUBLIC LAW 104-172; 50 U.S.C. 1701
NOTE).
  (C) "INVESTMENT" MEANS A COMMITMENT OR CONTRIBUTION OF FUNDS OR  PROP-
ERTY, A LOAN OR OTHER EXTENSION OF CREDIT; AND THE ENTRY INTO OR RENEWAL
OF A CONTRACT FOR GOODS OR SERVICES.
  (D)  "IRAN"  INCLUDES THE GOVERNMENT OF IRAN AND ANY AGENCY OR INSTRU-
MENTALITY OF IRAN.
  (E) "PERSON" MEANS ANY OF THE FOLLOWING:
  (1) A NATURAL PERSON, CORPORATION, COMPANY, LIMITED LIABILITY COMPANY,
BUSINESS ASSOCIATION, PARTNERSHIP, SOCIETY, TRUST, OR ANY OTHER  NONGOV-
ERNMENTAL ENTITY, ORGANIZATION, OR GROUP.
  (2)  ANY  GOVERNMENTAL  ENTITY  OR  INSTRUMENTALITY  OF  A GOVERNMENT,
INCLUDING A MULTILATERAL DEVELOPMENT INSTITUTION, AS DEFINED IN  SECTION
1701(C)(3)  OF  THE  INTERNATIONAL FINANCIAL INSTITUTIONS ACT (22 U.S.C.
262R(C)(3)).
  (3) ANY SUCCESSOR, SUBUNIT, PARENT ENTITY, OR SUBSIDIARY  OF,  OR  ANY
ENTITY  UNDER  COMMON OWNERSHIP OR CONTROL WITH, ANY ENTITY DESCRIBED IN
SUBPARAGRAPH ONE OR TWO OF THIS PARAGRAPH.
  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

S. 5917--A                          3

  (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 AND IS IDENTIFIED ON A LIST  CREATED  PURSUANT
TO PARAGRAPH (B) OF SUBDIVISION THREE OF THIS SECTION AS A PERSON ENGAG-
ING  IN  INVESTMENT  ACTIVITIES IN IRAN AS DESCRIBED IN PARAGRAPH (A) OF
THIS SUBDIVISION.
  3. (A) A PERSON THAT IS IDENTIFIED ON A LIST CREATED PURSUANT TO PARA-
GRAPH (B) OF THIS SUBDIVISION AS A PERSON ENGAGING IN INVESTMENT  ACTIV-
ITIES IN IRAN AS DESCRIBED IN SUBDIVISION TWO OF THIS SECTION, SHALL NOT
BE DEEMED A RESPONSIVE BIDDER OR OFFERER PURSUANT TO SECTION ONE HUNDRED
SIXTY-THREE OF THIS ARTICLE.
  (B)  (1)  NOT  LATER  THAN ONE HUNDRED TWENTY DAYS AFTER THE EFFECTIVE
DATE OF THIS SECTION, THE COMMISSIONER  SHALL  DEVELOP  OR  CONTRACT  TO
DEVELOP,  USING  CREDIBLE INFORMATION AVAILABLE TO THE PUBLIC, A LIST OF
PERSONS IT  DETERMINES  ENGAGE  IN  INVESTMENT  ACTIVITIES  IN  IRAN  AS
DESCRIBED  IN  SUBDIVISION TWO OF THIS SECTION.  IF THE COMMISSIONER HAS
CONTRACTED TO DEVELOP THE LIST, THE LIST SHALL BE FINALLY DEVELOPED  NOT
LATER THAN ONE HUNDRED TWENTY DAYS AFTER THIS SECTION SHALL TAKE EFFECT.
SUCH  LIST, WHEN COMPLETED, SHALL BE POSTED ON THE WEBSITE OF THE OFFICE
OF GENERAL SERVICES.
  (2) THE COMMISSIONER SHALL UPDATE THE LIST EVERY  ONE  HUNDRED  EIGHTY
DAYS.
  (3)  BEFORE FINALIZING AN INITIAL LIST PURSUANT TO SUBPARAGRAPH ONE OF
THIS PARAGRAPH OR AN UPDATED LIST PURSUANT TO SUBPARAGRAPH TWO  OF  THIS
PARAGRAPH,  THE  COMMISSIONER  SHALL  DO  ALL  OF THE FOLLOWING BEFORE A
PERSON IS INCLUDED ON THE LIST:
  (A) PROVIDE NINETY DAYS' WRITTEN NOTICE OF THE  COMMISSIONER'S  INTENT
TO  INCLUDE  THE  PERSON ON THE LIST. THE NOTICE SHALL INFORM THE PERSON
THAT INCLUSION ON THE LIST WOULD MAKE THE PERSON A NON-RESPONSIVE BIDDER
OR OFFERER.  THE NOTICE SHALL SPECIFY THAT THE PERSON, IF IT CEASES  ITS
ENGAGEMENT  IN INVESTMENT ACTIVITIES IN IRAN AS DESCRIBED IN SUBDIVISION
TWO OF THIS SECTION, MAY BE REMOVED FROM THE LIST.
  (B) THE COMMISSIONER SHALL PROVIDE A PERSON  WITH  AN  OPPORTUNITY  TO
COMMENT  IN  WRITING  THAT IT IS NOT ENGAGED IN INVESTMENT ACTIVITIES IN
IRAN. IF THE PERSON DEMONSTRATES TO THE COMMISSIONER THAT THE PERSON  IS
NOT ENGAGED IN INVESTMENT ACTIVITIES IN IRAN AS DESCRIBED IN SUBDIVISION
TWO OF THIS SECTION, THE PERSON SHALL NOT BE INCLUDED ON THE LIST.
  (4)  THE  COMMISSIONER  SHALL  MAKE  EVERY EFFORT TO AVOID ERRONEOUSLY
INCLUDING A PERSON ON THE LIST.
  (5) A PERSON THAT HAS A  CONTRACT  WITH  THE  NEW  YORK  STATE  COMMON
RETIREMENT  FUND,  THE  NEW  YORK  STATE AND LOCAL EMPLOYEES' RETIREMENT
SYSTEM, THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT  SYSTEM,
OR THE NEW YORK STATE TEACHERS' RETIREMENT SYSTEM, SHALL NOT BE DEEMED A
PERSON  THAT  ENGAGES  IN  INVESTMENT ACTIVITIES IN IRAN AS DESCRIBED IN
SUBDIVISION TWO OF THIS SECTION ON  THE  BASIS  OF  THOSE  CONTRACTS  OR
INVESTMENTS WITH SUCH RETIREMENT SYSTEMS, PROVIDED HOWEVER, THAT NOTHING
IN  THIS SUBPARAGRAPH SHALL PREVENT THE NEW YORK STATE COMMON RETIREMENT
FUND, THE NEW YORK STATE AND LOCAL  EMPLOYEES'  RETIREMENT  SYSTEM,  NEW
YORK  STATE  AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM OR THE NEW YORK
STATE TEACHERS' RETIREMENT SYSTEM FROM PURSUING A POLICY  OF  DIVESTMENT
IN THE IRANIAN ECONOMY.
  (C)  NOTWITHSTANDING PARAGRAPH (A) OF THIS SUBDIVISION, A STATE AGENCY
MAY PERMIT  A  PERSON  ENGAGED  IN  INVESTMENT  ACTIVITIES  IN  IRAN  AS
DESCRIBED  BY  SUBDIVISION TWO OF THIS SECTION TO BE DEEMED A RESPONSIVE
BIDDER OR OFFERER, ON A CASE-BY-CASE BASIS WITH A STATE AGENCY IF:

S. 5917--A                          4

  (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 STATE AGENCY MAKES A DETERMINATION  THAT  THE  COMMODITIES  OR
SERVICES ARE NECESSARY FOR THE STATE AGENCY TO PERFORM ITS FUNCTIONS AND
THAT,  ABSENT  SUCH  AN  EXEMPTION,  THE STATE AGENCY WOULD BE UNABLE TO
OBTAIN THE COMMODITIES OR SERVICES FOR WHICH THE  CONTRACT  IS  OFFERED.
SUCH DETERMINATION SHALL BE ENTERED INTO THE PROCUREMENT RECORD.
  4.  (A)  A  STATE  AGENCY SHALL REQUIRE A PERSON THAT SUBMITS A BID OR
OFFER IN RESPONSE TO A NOTICE OF PROCUREMENT, OR THAT PROPOSES TO  RENEW
AN  EXISTING  PROCUREMENT  CONTRACT  WITH  A STATE AGENCY OR PROPOSES TO
ASSUME THE RESPONSIBILITY OF A  CONTRACTOR  PURSUANT  TO  A  PROCUREMENT
CONTRACT  WITH  A  STATE  AGENCY  OR  OTHERWISE PROPOSES TO ENTER INTO A
CONTRACT WITH A STATE AGENCY WITH RESPECT TO A CONTRACT FOR COMMODITIES,
SERVICES, CONSTRUCTION, OR CONTRACTS ENTERED PURSUANT  TO  SECTIONS  SIX
AND  SEVEN  OF  THE  NEW  YORK  STATE PRINTING AND PUBLIC DOCUMENTS LAW,
SECTION EIGHT OF THE PUBLIC BUILDINGS LAW, OR  SECTION  THIRTY-EIGHT  OF
THE  HIGHWAY  LAW,  TO  CERTIFY, AT THE TIME THE BID IS SUBMITTED OR THE
CONTRACT IS RENEWED OR ASSIGNED, THAT THE PERSON OR THE ASSIGNEE IS  NOT
IDENTIFIED  ON  A  LIST CREATED PURSUANT TO PARAGRAPH (B) OF SUBDIVISION
THREE OF THIS SECTION. A STATE AGENCY SHALL INCLUDE CERTIFICATION INFOR-
MATION IN THE PROCUREMENT RECORD.
  (B) A PERSON THAT SUBMITS A BID OR OFFER IN RESPONSE TO  A  NOTICE  OF
PROCUREMENT  OR  THAT PROPOSES TO RENEW AN EXISTING PROCUREMENT CONTRACT
WITH A STATE AGENCY OR  PROPOSES  TO  ASSUME  THE  RESPONSIBILITY  OF  A
CONTRACTOR  PURSUANT  TO  A PROCUREMENT CONTRACT WITH A STATE AGENCY, OR
OTHERWISE PROPOSES TO ENTER INTO A CONTRACT WITH  A  STATE  AGENCY  WITH
RESPECT  TO  A  CONTRACT  FOR  COMMODITIES,  SERVICES,  CONSTRUCTION, OR
CONTRACTS ENTERED PURSUANT TO SECTIONS SIX AND SEVEN  OF  THE  NEW  YORK
STATE  PRINTING  AND  PUBLIC  DOCUMENTS LAW, SECTION EIGHT OF THE PUBLIC
BUILDINGS LAW, OR SECTION THIRTY-EIGHT OF  THE  HIGHWAY  LAW  SHALL  NOT
UTILIZE,  ON  THE CONTRACT WITH THE STATE AGENCY, ANY SUBCONTRACTOR THAT
IS IDENTIFIED ON A LIST CREATED PURSUANT TO PARAGRAPH (B) OF SUBDIVISION
THREE OF THIS SECTION.
  5. UPON RECEIVING INFORMATION THAT A PERSON WHO HAS MADE  THE  CERTIF-
ICATION  REQUIRED  BY  SUBDIVISION  FOUR OF THIS SECTION IS IN VIOLATION
THEREOF, THE STATE AGENCY SHALL REVIEW SUCH INFORMATION  AND  OFFER  THE
PERSON  AN  OPPORTUNITY  TO  RESPOND. IF THE PERSON FAILS TO DEMONSTRATE
THAT IS HAS  CEASED  ITS  ENGAGEMENT  IN  THE  INVESTMENT  WHICH  IS  IN
VIOLATION OF THIS ACT WITHIN NINETY DAYS AFTER THE DETERMINATION OF SUCH
VIOLATION, THEN THE STATE AGENCY SHALL TAKE SUCH ACTION AS MAY BE APPRO-
PRIATE  AND  PROVIDED  FOR  BY LAW, RULE OR CONTRACT, INCLUDING, BUT NOT
LIMITED TO, IMPOSING SANCTIONS, SEEKING COMPLIANCE,  RECOVERING  DAMAGES
OR DECLARING THE CONTRACTOR IN DEFAULT.
  6.  THE  COMMISSIONER SHALL REPORT TO THE GOVERNOR AND THE LEGISLATURE
ANNUALLY ON OR BEFORE OCTOBER  FIRST,  ON  THE  STATUS  OF  THE  FEDERAL
"COMPREHENSIVE  IRAN  SANCTIONS,  ACCOUNTABILITY,  AND DIVESTMENT ACT OF
2010" (PUBLIC LAW 111-195), "THE IRAN DIVESTMENT ACT OF 2012",  AND  ANY
RULES OR REGULATIONS ADOPTED THEREUNDER.
  S  4.  The  general  municipal  law is amended by adding a new section
103-g to read as follows:
  S 103-G. IRANIAN ENERGY  SECTOR  DIVESTMENT.    1.  AS  USED  IN  THIS
SECTION:

S. 5917--A                          5

  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
  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. A PERSON THAT IS IDENTIFIED ON A LIST CREATED PURSUANT 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, SHALL NOT BE DEEMED A
RESPONSIBLE BIDDER OR OFFERER PURSUANT TO SECTION ONE HUNDRED  THREE  OF
THIS ARTICLE.
  4.  EVERY BID OR PROPOSAL HEREAFTER MADE TO A POLITICAL SUBDIVISION OF
THE STATE OR ANY PUBLIC DEPARTMENT, AGENCY  OR  OFFICIAL  THEREOF  WHERE
COMPETITIVE  BIDDING  IS  REQUIRED BY STATUTE, RULE, REGULATION OR LOCAL
LAW, FOR WORK OR SERVICES PERFORMED OR TO BE PERFORMED OR GOODS SOLD  OR
TO  BE  SOLD,  SHALL  CONTAIN  THE FOLLOWING STATEMENT SUBSCRIBED BY THE
BIDDER AND AFFIRMED BY SUCH BIDDER AS TRUE UNDER THE PENALTIES OF PERJU-
RY:
  A. "BY SUBMISSION OF THIS BID, EACH BIDDER AND EACH PERSON SIGNING  ON
BEHALF  OF  ANY  BIDDER  CERTIFIES,  AND IN THE CASE OF A JOINT BID EACH
PARTY THERETO CERTIFIES AS TO ITS OWN  ORGANIZATION,  UNDER  PENALTY  OF
PERJURY,  THAT  TO THE BEST OF ITS KNOWLEDGE AND BELIEF THAT EACH BIDDER
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 IN ACCORDANCE WITH THE PROVISIONS OF SUBDIVISION ONE  OF  SECTION
ONE HUNDRED THREE OF THIS ARTICLE.
  C. A BID SHALL NOT BE CONSIDERED FOR AWARD NOR SHALL ANY AWARD BE MADE
WHERE THE CONDITION SET FORTH IN PARAGRAPH A OF THIS SUBDIVISION HAS NOT
BEEN  COMPLIED  WITH;  PROVIDED, HOWEVER, THAT IF IN ANY CASE THE BIDDER
CANNOT MAKE THE FOREGOING CERTIFICATION, THE BIDDER SHALL SO  STATE  AND
SHALL FURNISH WITH THE BID A SIGNED STATEMENT WHICH SETS FORTH IN DETAIL
THE  REASONS  THEREFOR.  A  POLITICAL  SUBDIVISION  MAY AWARD A BID TO A

S. 5917--A                          6

BIDDER WHO CANNOT MAKE THE CERTIFICATION 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 POLITICAL SUBDIVISION MAKES A DETERMINATION THAT THE GOODS  OR
SERVICES  ARE  NECESSARY  FOR  THE  POLITICAL SUBDIVISION TO PERFORM ITS
FUNCTIONS AND THAT, ABSENT SUCH AN EXEMPTION, THE POLITICAL  SUBDIVISION
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  5.  The  secretary of state shall submit to the attorney general of
the United States a written notice describing this act  within  30  days
after the effective date of this act.
  S 6. Severability. If any clause, sentence, paragraph, section or part
of  this act shall be adjudged by any court of competent jurisdiction to
be invalid and after exhaustion of  all  further  judicial  review,  the
judgment  shall  not affect, impair or invalidate the remainder thereof,
but shall be confined in its operation to the  clause,  sentence,  para-
graph,  section or part of this act directly involved in the controversy
in which the judgment shall have been rendered.
  S 7. This act shall take effect on the ninetieth day  after  it  shall
have  become  a  law; provided, however, that effective immediately, the
addition, amendment and/or repeal of any rule  or  regulation  necessary
for  the implementation of this act on its effective date are authorized
and directed to be made and completed on or before such effective date.

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