SB-1024, As Passed Senate, June 12, 2012

SUBSTITUTE FOR

SENATE BILL NO. 1024

     A bill to prohibit persons who have certain economic

relationships with Iran from submitting bids on requests for

proposals with this state, political subdivisions of this state,

and other public entities; to require bidders for certain public

contracts to submit certification of eligibility with the bid; to

require reports; and to provide for sanctions for false

certification.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 1. This act shall be known and may be cited as the "Iran

economic sanctions act".

     Sec. 2. As used in this act:

     (a) "Iran" means any agency or instrumentality of Iran.

     (b) "Iran linked business" means either of the following:

     (i) A person with an investment in the energy sector of Iran,

including a person that provides oil or liquefied natural gas

tankers or products used to construct or maintain pipelines used to

transport oil or liquefied natural gas for the energy sector of

Iran.

     (ii) A financial institution that extends credit to another

person, if that person will use the credit for investment in the

energy sector of Iran.

     (c) "Person" means any of the following:

     (i) An individual, corporation, company, limited liability

company, business association, partnership, society, trust, or any

other nongovernmental entity, organization, or group.

     (ii) Any governmental entity or instrumentality of a

government, including a multilateral development institution, as

defined in section 1701(c)(3) of the international financial

institutional act, 22 USC 262r(c)(3).

     (iii) Any successor, subunit, parent company, or subsidiary of,

or company under common ownership or control with, any entity

described in subparagraph (i) or (ii).

     (d) "Public entity" means this state or an agency or authority

of this state, school district, community college district,

intermediate school district, city, village, township, county,

public authority, or public airport authority.

     Sec. 3. (1) Beginning January 1, 2013, an Iran linked business

is not eligible to submit a bid on a request for proposal with a

public entity.

     (2) Beginning January 1, 2013, a public entity shall require a

person that submits a bid on a request for proposal with the public

entity to certify that it is not an Iran linked business.

     Sec. 4. If a public entity determines that a person has

submitted a false certification under section 3(2), the person is

subject to all of the following:

     (a) Termination of any existing contract with the public

entity, at the option of the public entity.

     (b) Ineligibility to bid on a request for proposal for 3 years

from the date the public entity determines that the person has

submitted the false certification.

     (c) Referral for civil prosecution under section 5 for

collection of a fine of not more than $250,000.00 or 2 times the

amount of the contract or proposed contract for which the false

certification was made, whichever is greater.

     Sec. 5. If a public entity determines that a person has

submitted a false certification under section 3(2), the public

entity shall report the name of the person to the attorney general

together with information supporting the determination. The

attorney general may bring a civil action against the person to

collect the fine under section 4(c). If a civil action results in a

finding that the person submitted a false certification, the person

is responsible for the cost of the public entity's investigation

and reasonable attorney fees, in addition to the fine.

     Sec. 6. (1) If a public entity determines, based on credible

information, that a person that has submitted a bid on a request

for proposal in violation of this act and entered into a contract

with the public entity is an Iran linked business, the public

entity shall notify the person of the determination and of the

intent not to enter into or renew a contract with the person. The

notice shall include information on how to contest the

determination. The notice shall specify that the person may become

eligible for a future contract with the public entity if the person

ceases the activities that cause it to be an Iran linked business.

     (2) Upon the request of a person notified under subsection

(1), the public entity shall provide the person it determined to be

an Iran linked business with an opportunity to demonstrate to the

public entity that it is not an Iran linked business. If the public

entity then determines that the person is not an Iran linked

business, the person shall be notified that it is not ineligible

under this act to bid on a request for proposal with the public

entity.

     Enacting section 1. This act takes effect January 1, 2013.