S5917-2011 Actions

• Jan 9, 2012: SUBSTITUTED BY A8668A
• Jan 9, 2012: ORDERED TO THIRD READING CAL.8
• Jan 9, 2012: REPORTED AND COMMITTED TO RULES
• Jan 4, 2012: PRINT NUMBER 5917A
• Jan 4, 2012: AMEND AND RECOMMIT TO FINANCE
• Jan 4, 2012: REFERRED TO FINANCE
• Nov 4, 2011: REFERRED TO FINANCE

S5917-2011 Votes

S5917-2011 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, Account-
ability, 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.

S5917-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         5917
 2011-2012 Regular Sessions
 I N  SENATE
 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.

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