Bill Text: NY S05917 | 2011-2012 | General Assembly | Amended
Bill Title: Enacts the Iran divestment act of 2012 to prevent public investment in 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.
Spectrum: Slight Partisan Bill (Republican 32-13)
Status: (Introduced - Dead) 2012-01-09 - SUBSTITUTED BY A8668A [S05917 Detail]
Download: New_York-2011-S05917-Amended.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 5917--A 2011-2012 Regular Sessions I N S E N A T E 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, CARLUCCI, OPPENHEIMER -- read twice and ordered printed, and when printed to be committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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: 1 Section 1. This act shall be known and may be cited as the "Iran 2 Divestment Act of 2012". 3 S 2. The legislature hereby finds and declares all of the following: 4 (a) Congress and the President have determined that the illicit nucle- 5 ar activities of the Government of Iran, combined with its development 6 of unconventional weapons and ballistic missiles, and its support of 7 international terrorism, represent a serious threat to the security of 8 the United States, Israel, and other United States allies in Europe, the 9 Middle East, and around the world. 10 (b) The International Atomic Energy Agency has repeatedly called 11 attention to Iran's unlawful nuclear activities, and, as a result, the 12 United Nations Security Council has adopted a range of sanctions 13 designed to encourage the government of Iran to cease those activities 14 and comply with its obligations under the Treaty on the Non-Prolifera- 15 tion of Nuclear Weapons (commonly known as the "Nuclear Non-Prolifera- 16 tion Treaty"). 17 (c) On July 1, 2010, President Barack Obama signed into law H.R. 18 2194, the "Comprehensive Iran Sanctions, Accountability, and Divestment 19 Act of 2010" (Public Law 111-195), which expressly authorizes states and EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD13338-13-1 S. 5917--A 2 1 local governments to prevent investment in, including prohibiting entry 2 into or renewing contracts with, companies operating in Iran's energy 3 sector with investments that have the result of directly or indirectly 4 supporting the efforts of the government of Iran to achieve nuclear 5 weapons capability. 6 (d) The serious and urgent nature of the threat from Iran demands that 7 states, local governments, and private institutions work together with 8 the federal government and American allies to do everything possible 9 diplomatically, politically, and economically to prevent Iran from 10 acquiring a nuclear weapons capability. 11 (e) Respect for human rights in Iran has steadily deteriorated as 12 demonstrated by transparently fraudulent elections and the brutal 13 repression and murder, arbitrary arrests, and show trials of peaceful 14 dissidents. 15 (f) The concerns of the state of New York regarding Iran are strictly 16 the result of the actions of the government of Iran and should not be 17 construed as enmity towards the Iranian people. 18 (g) In order to effectively address the need for the governments of 19 this state to respond to the policies of Iran in a uniform fashion, 20 prohibiting contracts with persons engaged in investment activities in 21 the energy sector of Iran must be accomplished on a statewide basis. 22 (h) It is the intent of the legislature to fully implement the author- 23 ity granted under Section 202 of the Comprehensive Iran Sanctions, 24 Accountability, and Divestment Act of 2010 (Public Law 111-195). 25 S 3. The state finance law is amended by adding a new section 165-a to 26 read as follows: 27 S 165-A. IRAN DIVESTMENT. 1. AS USED IN THIS SECTION, THE FOLLOWING 28 DEFINITIONS SHALL APPLY: 29 (A) "ENERGY SECTOR" OF IRAN MEANS ACTIVITIES TO DEVELOP PETROLEUM OR 30 NATURAL GAS RESOURCES OR NUCLEAR POWER IN IRAN. 31 (B) "FINANCIAL INSTITUTION" MEANS THE TERM AS USED IN SECTION 14 OF 32 THE IRAN SANCTIONS ACT OF 1996 (PUBLIC LAW 104-172; 50 U.S.C. 1701 33 NOTE). 34 (C) "INVESTMENT" MEANS A COMMITMENT OR CONTRIBUTION OF FUNDS OR PROP- 35 ERTY, A LOAN OR OTHER EXTENSION OF CREDIT; AND THE ENTRY INTO OR RENEWAL 36 OF A CONTRACT FOR GOODS OR SERVICES. 37 (D) "IRAN" INCLUDES THE GOVERNMENT OF IRAN AND ANY AGENCY OR INSTRU- 38 MENTALITY OF IRAN. 39 (E) "PERSON" MEANS ANY OF THE FOLLOWING: 40 (1) A NATURAL PERSON, CORPORATION, COMPANY, LIMITED LIABILITY COMPANY, 41 BUSINESS ASSOCIATION, PARTNERSHIP, SOCIETY, TRUST, OR ANY OTHER NONGOV- 42 ERNMENTAL ENTITY, ORGANIZATION, OR GROUP. 43 (2) ANY GOVERNMENTAL ENTITY OR INSTRUMENTALITY OF A GOVERNMENT, 44 INCLUDING A MULTILATERAL DEVELOPMENT INSTITUTION, AS DEFINED IN SECTION 45 1701(C)(3) OF THE INTERNATIONAL FINANCIAL INSTITUTIONS ACT (22 U.S.C. 46 262R(C)(3)). 47 (3) ANY SUCCESSOR, SUBUNIT, PARENT ENTITY, OR SUBSIDIARY OF, OR ANY 48 ENTITY UNDER COMMON OWNERSHIP OR CONTROL WITH, ANY ENTITY DESCRIBED IN 49 SUBPARAGRAPH ONE OR TWO OF THIS PARAGRAPH. 50 2. FOR PURPOSES OF THIS SECTION, A PERSON ENGAGES IN INVESTMENT ACTIV- 51 ITIES IN IRAN IF: 52 (A) THE PERSON PROVIDES GOODS OR SERVICES OF TWENTY MILLION DOLLARS OR 53 MORE IN THE ENERGY SECTOR OF IRAN, INCLUDING A PERSON THAT PROVIDES OIL 54 OR LIQUEFIED NATURAL GAS TANKERS, OR PRODUCTS USED TO CONSTRUCT OR MAIN- 55 TAIN PIPELINES USED TO TRANSPORT OIL OR LIQUEFIED NATURAL GAS, FOR THE 56 ENERGY SECTOR OF IRAN; OR S. 5917--A 3 1 (B) THE PERSON IS A FINANCIAL INSTITUTION THAT EXTENDS TWENTY MILLION 2 DOLLARS OR MORE IN CREDIT TO ANOTHER PERSON, FOR FORTY-FIVE DAYS OR 3 MORE, IF THAT PERSON WILL USE THE CREDIT TO PROVIDE GOODS OR SERVICES IN 4 THE ENERGY SECTOR IN IRAN AND IS IDENTIFIED ON A LIST CREATED PURSUANT 5 TO PARAGRAPH (B) OF SUBDIVISION THREE OF THIS SECTION AS A PERSON ENGAG- 6 ING IN INVESTMENT ACTIVITIES IN IRAN AS DESCRIBED IN PARAGRAPH (A) OF 7 THIS SUBDIVISION. 8 3. (A) A PERSON THAT IS IDENTIFIED ON A LIST CREATED PURSUANT TO PARA- 9 GRAPH (B) OF THIS SUBDIVISION AS A PERSON ENGAGING IN INVESTMENT ACTIV- 10 ITIES IN IRAN AS DESCRIBED IN SUBDIVISION TWO OF THIS SECTION, SHALL NOT 11 BE DEEMED A RESPONSIVE BIDDER OR OFFERER PURSUANT TO SECTION ONE HUNDRED 12 SIXTY-THREE OF THIS ARTICLE. 13 (B) (1) NOT LATER THAN ONE HUNDRED TWENTY DAYS AFTER THE EFFECTIVE 14 DATE OF THIS SECTION, THE COMMISSIONER SHALL DEVELOP OR CONTRACT TO 15 DEVELOP, USING CREDIBLE INFORMATION AVAILABLE TO THE PUBLIC, A LIST OF 16 PERSONS IT DETERMINES ENGAGE IN INVESTMENT ACTIVITIES IN IRAN AS 17 DESCRIBED IN SUBDIVISION TWO OF THIS SECTION. IF THE COMMISSIONER HAS 18 CONTRACTED TO DEVELOP THE LIST, THE LIST SHALL BE FINALLY DEVELOPED NOT 19 LATER THAN ONE HUNDRED TWENTY DAYS AFTER THIS SECTION SHALL TAKE EFFECT. 20 SUCH LIST, WHEN COMPLETED, SHALL BE POSTED ON THE WEBSITE OF THE OFFICE 21 OF GENERAL SERVICES. 22 (2) THE COMMISSIONER SHALL UPDATE THE LIST EVERY ONE HUNDRED EIGHTY 23 DAYS. 24 (3) BEFORE FINALIZING AN INITIAL LIST PURSUANT TO SUBPARAGRAPH ONE OF 25 THIS PARAGRAPH OR AN UPDATED LIST PURSUANT TO SUBPARAGRAPH TWO OF THIS 26 PARAGRAPH, THE COMMISSIONER SHALL DO ALL OF THE FOLLOWING BEFORE A 27 PERSON IS INCLUDED ON THE LIST: 28 (A) PROVIDE NINETY DAYS' WRITTEN NOTICE OF THE COMMISSIONER'S INTENT 29 TO INCLUDE THE PERSON ON THE LIST. THE NOTICE SHALL INFORM THE PERSON 30 THAT INCLUSION ON THE LIST WOULD MAKE THE PERSON A NON-RESPONSIVE BIDDER 31 OR OFFERER. THE NOTICE SHALL SPECIFY THAT THE PERSON, IF IT CEASES ITS 32 ENGAGEMENT IN INVESTMENT ACTIVITIES IN IRAN AS DESCRIBED IN SUBDIVISION 33 TWO OF THIS SECTION, MAY BE REMOVED FROM THE LIST. 34 (B) THE COMMISSIONER SHALL PROVIDE A PERSON WITH AN OPPORTUNITY TO 35 COMMENT IN WRITING THAT IT IS NOT ENGAGED IN INVESTMENT ACTIVITIES IN 36 IRAN. IF THE PERSON DEMONSTRATES TO THE COMMISSIONER THAT THE PERSON IS 37 NOT ENGAGED IN INVESTMENT ACTIVITIES IN IRAN AS DESCRIBED IN SUBDIVISION 38 TWO OF THIS SECTION, THE PERSON SHALL NOT BE INCLUDED ON THE LIST. 39 (4) THE COMMISSIONER SHALL MAKE EVERY EFFORT TO AVOID ERRONEOUSLY 40 INCLUDING A PERSON ON THE LIST. 41 (5) A PERSON THAT HAS A CONTRACT WITH THE NEW YORK STATE COMMON 42 RETIREMENT FUND, THE NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT 43 SYSTEM, THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM, 44 OR THE NEW YORK STATE TEACHERS' RETIREMENT SYSTEM, SHALL NOT BE DEEMED A 45 PERSON THAT ENGAGES IN INVESTMENT ACTIVITIES IN IRAN AS DESCRIBED IN 46 SUBDIVISION TWO OF THIS SECTION ON THE BASIS OF THOSE CONTRACTS OR 47 INVESTMENTS WITH SUCH RETIREMENT SYSTEMS, PROVIDED HOWEVER, THAT NOTHING 48 IN THIS SUBPARAGRAPH SHALL PREVENT THE NEW YORK STATE COMMON RETIREMENT 49 FUND, THE NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM, NEW 50 YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM OR THE NEW YORK 51 STATE TEACHERS' RETIREMENT SYSTEM FROM PURSUING A POLICY OF DIVESTMENT 52 IN THE IRANIAN ECONOMY. 53 (C) NOTWITHSTANDING PARAGRAPH (A) OF THIS SUBDIVISION, A STATE AGENCY 54 MAY PERMIT A PERSON ENGAGED IN INVESTMENT ACTIVITIES IN IRAN AS 55 DESCRIBED BY SUBDIVISION TWO OF THIS SECTION TO BE DEEMED A RESPONSIVE 56 BIDDER OR OFFERER, ON A CASE-BY-CASE BASIS WITH A STATE AGENCY IF: S. 5917--A 4 1 (1) THE INVESTMENT ACTIVITIES IN IRAN WERE MADE BEFORE THE EFFECTIVE 2 DATE OF THIS SECTION, THE INVESTMENT ACTIVITIES IN IRAN HAVE NOT BEEN 3 EXPANDED OR RENEWED AFTER THE EFFECTIVE DATE OF THIS SECTION, AND THE 4 PERSON HAS ADOPTED, PUBLICIZED, AND IS IMPLEMENTING A FORMAL PLAN TO 5 CEASE THE INVESTMENT ACTIVITIES IN IRAN AND TO REFRAIN FROM ENGAGING IN 6 ANY NEW INVESTMENTS IN IRAN; OR 7 (2) THE STATE AGENCY MAKES A DETERMINATION THAT THE COMMODITIES OR 8 SERVICES ARE NECESSARY FOR THE STATE AGENCY TO PERFORM ITS FUNCTIONS AND 9 THAT, ABSENT SUCH AN EXEMPTION, THE STATE AGENCY WOULD BE UNABLE TO 10 OBTAIN THE COMMODITIES OR SERVICES FOR WHICH THE CONTRACT IS OFFERED. 11 SUCH DETERMINATION SHALL BE ENTERED INTO THE PROCUREMENT RECORD. 12 4. (A) A STATE AGENCY SHALL REQUIRE A PERSON THAT SUBMITS A BID OR 13 OFFER IN RESPONSE TO A NOTICE OF PROCUREMENT, OR THAT PROPOSES TO RENEW 14 AN EXISTING PROCUREMENT CONTRACT WITH A STATE AGENCY OR PROPOSES TO 15 ASSUME THE RESPONSIBILITY OF A CONTRACTOR PURSUANT TO A PROCUREMENT 16 CONTRACT WITH A STATE AGENCY OR OTHERWISE PROPOSES TO ENTER INTO A 17 CONTRACT WITH A STATE AGENCY WITH RESPECT TO A CONTRACT FOR COMMODITIES, 18 SERVICES, CONSTRUCTION, OR CONTRACTS ENTERED PURSUANT TO SECTIONS SIX 19 AND SEVEN OF THE NEW YORK STATE PRINTING AND PUBLIC DOCUMENTS LAW, 20 SECTION EIGHT OF THE PUBLIC BUILDINGS LAW, OR SECTION THIRTY-EIGHT OF 21 THE HIGHWAY LAW, TO CERTIFY, AT THE TIME THE BID IS SUBMITTED OR THE 22 CONTRACT IS RENEWED OR ASSIGNED, THAT THE PERSON OR THE ASSIGNEE IS NOT 23 IDENTIFIED ON A LIST CREATED PURSUANT TO PARAGRAPH (B) OF SUBDIVISION 24 THREE OF THIS SECTION. A STATE AGENCY SHALL INCLUDE CERTIFICATION INFOR- 25 MATION IN THE PROCUREMENT RECORD. 26 (B) A PERSON THAT SUBMITS A BID OR OFFER IN RESPONSE TO A NOTICE OF 27 PROCUREMENT OR THAT PROPOSES TO RENEW AN EXISTING PROCUREMENT CONTRACT 28 WITH A STATE AGENCY OR PROPOSES TO ASSUME THE RESPONSIBILITY OF A 29 CONTRACTOR PURSUANT TO A PROCUREMENT CONTRACT WITH A STATE AGENCY, OR 30 OTHERWISE PROPOSES TO ENTER INTO A CONTRACT WITH A STATE AGENCY WITH 31 RESPECT TO A CONTRACT FOR COMMODITIES, SERVICES, CONSTRUCTION, OR 32 CONTRACTS ENTERED PURSUANT TO SECTIONS SIX AND SEVEN OF THE NEW YORK 33 STATE PRINTING AND PUBLIC DOCUMENTS LAW, SECTION EIGHT OF THE PUBLIC 34 BUILDINGS LAW, OR SECTION THIRTY-EIGHT OF THE HIGHWAY LAW SHALL NOT 35 UTILIZE, ON THE CONTRACT WITH THE STATE AGENCY, ANY SUBCONTRACTOR THAT 36 IS IDENTIFIED ON A LIST CREATED PURSUANT TO PARAGRAPH (B) OF SUBDIVISION 37 THREE OF THIS SECTION. 38 5. UPON RECEIVING INFORMATION THAT A PERSON WHO HAS MADE THE CERTIF- 39 ICATION REQUIRED BY SUBDIVISION FOUR OF THIS SECTION IS IN VIOLATION 40 THEREOF, THE STATE AGENCY SHALL REVIEW SUCH INFORMATION AND OFFER THE 41 PERSON AN OPPORTUNITY TO RESPOND. IF THE PERSON FAILS TO DEMONSTRATE 42 THAT IS HAS CEASED ITS ENGAGEMENT IN THE INVESTMENT WHICH IS IN 43 VIOLATION OF THIS ACT WITHIN NINETY DAYS AFTER THE DETERMINATION OF SUCH 44 VIOLATION, THEN THE STATE AGENCY SHALL TAKE SUCH ACTION AS MAY BE APPRO- 45 PRIATE AND PROVIDED FOR BY LAW, RULE OR CONTRACT, INCLUDING, BUT NOT 46 LIMITED TO, IMPOSING SANCTIONS, SEEKING COMPLIANCE, RECOVERING DAMAGES 47 OR DECLARING THE CONTRACTOR IN DEFAULT. 48 6. THE COMMISSIONER SHALL REPORT TO THE GOVERNOR AND THE LEGISLATURE 49 ANNUALLY ON OR BEFORE OCTOBER FIRST, ON THE STATUS OF THE FEDERAL 50 "COMPREHENSIVE IRAN SANCTIONS, ACCOUNTABILITY, AND DIVESTMENT ACT OF 51 2010" (PUBLIC LAW 111-195), "THE IRAN DIVESTMENT ACT OF 2012", AND ANY 52 RULES OR REGULATIONS ADOPTED THEREUNDER. 53 S 4. The general municipal law is amended by adding a new section 54 103-g to read as follows: 55 S 103-G. IRANIAN ENERGY SECTOR DIVESTMENT. 1. AS USED IN THIS 56 SECTION: S. 5917--A 5 1 A. "ENERGY SECTOR" SHALL HAVE THE SAME MEANING AS DEFINED IN PARAGRAPH 2 (A) OF SUBDIVISION ONE OF SECTION ONE HUNDRED SIXTY-FIVE-A OF THE STATE 3 FINANCE LAW. 4 B. "FINANCIAL INSTITUTION" SHALL HAVE THE SAME MEANING AS DEFINED IN 5 PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION ONE HUNDRED SIXTY-FIVE-A OF 6 THE STATE FINANCE LAW. 7 C. "INVESTMENT" SHALL HAVE THE SAME MEANING AS DEFINED IN PARAGRAPH 8 (C) OF SUBDIVISION ONE OF SECTION ONE HUNDRED SIXTY-FIVE-A OF THE STATE 9 FINANCE LAW. 10 D. "IRAN" SHALL HAVE THE SAME MEANING AS DEFINED IN PARAGRAPH (D) OF 11 SUBDIVISION ONE OF SECTION ONE HUNDRED SIXTY-FIVE-A OF THE STATE FINANCE 12 LAW. 13 E. "PERSON" SHALL HAVE THE SAME MEANING AS DEFINED IN PARAGRAPH (E) 14 OF SUBDIVISION ONE OF SECTION ONE HUNDRED SIXTY-FIVE-A OF THE STATE 15 FINANCE LAW. 16 2. FOR PURPOSES OF THIS SECTION, A PERSON ENGAGES IN INVESTMENT ACTIV- 17 ITIES IN IRAN IF: 18 A. THE PERSON PROVIDES GOODS OR SERVICES OF TWENTY MILLION DOLLARS OR 19 MORE IN THE ENERGY SECTOR OF IRAN, INCLUDING A PERSON THAT PROVIDES OIL 20 OR LIQUEFIED NATURAL GAS TANKERS, OR PRODUCTS USED TO CONSTRUCT OR MAIN- 21 TAIN PIPELINES USED TO TRANSPORT OIL OR LIQUEFIED NATURAL GAS, FOR THE 22 ENERGY SECTOR OF IRAN; OR 23 B. THE PERSON IS A FINANCIAL INSTITUTION THAT EXTENDS TWENTY MILLION 24 DOLLARS OR MORE IN CREDIT TO ANOTHER PERSON, FOR FORTY-FIVE DAYS OR 25 MORE, IF THAT PERSON WILL USE THE CREDIT TO PROVIDE GOODS OR SERVICES IN 26 THE ENERGY SECTOR IN IRAN. 27 3. A PERSON THAT IS IDENTIFIED ON A LIST CREATED PURSUANT TO PARAGRAPH 28 (B) OF SUBDIVISION THREE OF SECTION ONE HUNDRED SIXTY-FIVE-A OF THE 29 STATE FINANCE LAW AS A PERSON ENGAGING IN INVESTMENT ACTIVITIES IN IRAN 30 AS DESCRIBED IN SUBDIVISION TWO OF THIS SECTION, SHALL NOT BE DEEMED A 31 RESPONSIBLE BIDDER OR OFFERER PURSUANT TO SECTION ONE HUNDRED THREE OF 32 THIS ARTICLE. 33 4. EVERY BID OR PROPOSAL HEREAFTER MADE TO A POLITICAL SUBDIVISION OF 34 THE STATE OR ANY PUBLIC DEPARTMENT, AGENCY OR OFFICIAL THEREOF WHERE 35 COMPETITIVE BIDDING IS REQUIRED BY STATUTE, RULE, REGULATION OR LOCAL 36 LAW, FOR WORK OR SERVICES PERFORMED OR TO BE PERFORMED OR GOODS SOLD OR 37 TO BE SOLD, SHALL CONTAIN THE FOLLOWING STATEMENT SUBSCRIBED BY THE 38 BIDDER AND AFFIRMED BY SUCH BIDDER AS TRUE UNDER THE PENALTIES OF PERJU- 39 RY: 40 A. "BY SUBMISSION OF THIS BID, EACH BIDDER AND EACH PERSON SIGNING ON 41 BEHALF OF ANY BIDDER CERTIFIES, AND IN THE CASE OF A JOINT BID EACH 42 PARTY THERETO CERTIFIES AS TO ITS OWN ORGANIZATION, UNDER PENALTY OF 43 PERJURY, THAT TO THE BEST OF ITS KNOWLEDGE AND BELIEF THAT EACH BIDDER 44 IS NOT ON THE LIST CREATED PURSUANT TO PARAGRAPH (B) OF SUBDIVISION 3 OF 45 SECTION 165-A OF THE STATE FINANCE LAW." 46 B. NOTWITHSTANDING PARAGRAPH A OF THIS SUBDIVISION, THE STATEMENT OF 47 NON-INVESTMENT IN THE IRANIAN ENERGY SECTOR MAY BE SUBMITTED ELECTRON- 48 ICALLY IN ACCORDANCE WITH THE PROVISIONS OF SUBDIVISION ONE OF SECTION 49 ONE HUNDRED THREE OF THIS ARTICLE. 50 C. A BID SHALL NOT BE CONSIDERED FOR AWARD NOR SHALL ANY AWARD BE MADE 51 WHERE THE CONDITION SET FORTH IN PARAGRAPH A OF THIS SUBDIVISION HAS NOT 52 BEEN COMPLIED WITH; PROVIDED, HOWEVER, THAT IF IN ANY CASE THE BIDDER 53 CANNOT MAKE THE FOREGOING CERTIFICATION, THE BIDDER SHALL SO STATE AND 54 SHALL FURNISH WITH THE BID A SIGNED STATEMENT WHICH SETS FORTH IN DETAIL 55 THE REASONS THEREFOR. A POLITICAL SUBDIVISION MAY AWARD A BID TO A S. 5917--A 6 1 BIDDER WHO CANNOT MAKE THE CERTIFICATION PURSUANT TO PARAGRAPH A OF THIS 2 SUBDIVISION ON A CASE-BY-CASE BASIS IF: 3 (1) THE INVESTMENT ACTIVITIES IN IRAN WERE MADE BEFORE THE EFFECTIVE 4 DATE OF THIS SECTION, THE INVESTMENT ACTIVITIES IN IRAN HAVE NOT BEEN 5 EXPANDED OR RENEWED AFTER THE EFFECTIVE DATE OF THIS SECTION, AND THE 6 PERSON HAS ADOPTED, PUBLICIZED, AND IS IMPLEMENTING A FORMAL PLAN TO 7 CEASE THE INVESTMENT ACTIVITIES IN IRAN AND TO REFRAIN FROM ENGAGING IN 8 ANY NEW INVESTMENTS IN IRAN; OR 9 (2) THE POLITICAL SUBDIVISION MAKES A DETERMINATION THAT THE GOODS OR 10 SERVICES ARE NECESSARY FOR THE POLITICAL SUBDIVISION TO PERFORM ITS 11 FUNCTIONS AND THAT, ABSENT SUCH AN EXEMPTION, THE POLITICAL SUBDIVISION 12 WOULD BE UNABLE TO OBTAIN THE GOODS OR SERVICES FOR WHICH THE CONTRACT 13 IS OFFERED. SUCH DETERMINATION SHALL BE MADE IN WRITING AND SHALL BE A 14 PUBLIC DOCUMENT. 15 S 5. The secretary of state shall submit to the attorney general of 16 the United States a written notice describing this act within 30 days 17 after the effective date of this act. 18 S 6. Severability. If any clause, sentence, paragraph, section or part 19 of this act shall be adjudged by any court of competent jurisdiction to 20 be invalid and after exhaustion of all further judicial review, the 21 judgment shall not affect, impair or invalidate the remainder thereof, 22 but shall be confined in its operation to the clause, sentence, para- 23 graph, section or part of this act directly involved in the controversy 24 in which the judgment shall have been rendered. 25 S 7. This act shall take effect on the ninetieth day after it shall 26 have become a law; provided, however, that effective immediately, the 27 addition, amendment and/or repeal of any rule or regulation necessary 28 for the implementation of this act on its effective date are authorized 29 and directed to be made and completed on or before such effective date.