Bill Text: MI SB1024 | 2011-2012 | 96th Legislature | Engrossed
Bill Title: State financing and management; purchasing; Iran economic sanctions act; enact. Creates new act.
Spectrum: Moderate Partisan Bill (Republican 5-1)
Status: (Passed) 2012-12-31 - Assigned Pa 0517'12 With Immediate Effect [SB1024 Detail]
Download: Michigan-2011-SB1024-Engrossed.html
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.
