March 15, 2012, Introduced by Reps. Knollenberg, Agema, Callton, Haines, Kowall and Moss and referred to the Committee on Banking and Financial Services.
A bill to prohibit persons who have certain economic
relationships with Iran from submitting bids or entering into
contracts 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" includes any agency or instrumentality of Iran.
(b) "Iran-linked business" means a person that has investments
in Iran or holds a contract with the government of Iran or a
political subdivision 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, school
district, community college district, intermediate school district,
city, village, township, or county of this state.
Sec. 3. (1) An Iran-linked business is not eligible for award
of, and shall not submit a bid or proposal or enter into, a
contract with a public entity in which the contract is for more
than $2,500.00.
(2) A public entity shall require a person that submits a bid
or proposal to enter into a contract 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, or for award of, a contract 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 or contract
proposal or that is a party to an existing 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 enter into or renew a contract with the public
entity.
Enacting section 1. This act takes effect January 1, 2013.