Bill S6462-2011

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

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

Details

Actions

  • May 9, 2012: SUBSTITUTED BY A9224
  • May 7, 2012: ADVANCED TO THIRD READING
  • May 2, 2012: 2ND REPORT CAL.
  • May 1, 2012: 1ST REPORT CAL.672
  • Feb 13, 2012: REFERRED TO FINANCE

Meetings

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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 government 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.


Text

STATE OF NEW YORK ________________________________________________________________________ 6462 IN SENATE 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
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
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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