§ 165-A — Iran divestment

§ 165-a. Iran divestment. 1. As used in this section, the following\ndefinitions shall apply:\n (a) "Energy sector" of Iran means activities to develop petroleum or\nnatural gas resources or nuclear power in Iran.\n (b) "Financial institution" means the term as used in Section 14 of\nthe Iran Sanctions Act of 1996 (Public Law 104-172; 50 U.S.C. 1701\nnote).\n (c) "Investment" means a commitment or contribution of funds or\nproperty, a loan or other extension of credit; and the entry into or\nrenewal of a contract for goods or services.\n (d) "Iran" includes the government of Iran and any agency or\ninstrumentality of Iran.\n (e) "Person" means any of the following:\n (1) A natural person, corporation, company, limited liability company,\nbusiness association, partnership, society, trust, or any other\nnongovernmental entity, organization, or group.\n (2) Any governmental entity or instrumentality of a government,\nincluding a multilateral development institution, as defined in Section\n1701(c)(3) of the International Financial Institutions Act (22 U.S.C.\n262r(c)(3)).\n (3) Any successor, subunit, parent entity, or subsidiary of, or any\nentity under common ownership or control with, any entity described in\nsubparagraph one or two of this paragraph.\n 2. For purposes of this section, a person engages in investment\nactivities in Iran if:\n (a) The person provides goods or services of twenty million dollars or\nmore in the energy sector of Iran, including a person that provides oil\nor liquefied natural gas tankers, or products used to construct or\nmaintain pipelines used to transport oil or liquefied natural gas, for\nthe energy sector of Iran; or\n (b) The person is a financial institution that extends twenty million\ndollars or more in credit to another person, for forty-five days or\nmore, if that person will use the credit to provide goods or services in\nthe energy sector in Iran and is identified on a list created pursuant\nto paragraph (b) of subdivision three of this section as a person\nengaging in investment activities in Iran as described in paragraph (a)\nof this subdivision.\n 3. (a) A person that is identified on a list created pursuant to\nparagraph (b) of this subdivision as a person engaging in investment\nactivities in Iran as described in subdivision two of this section,\nshall not be deemed a responsive bidder or offerer pursuant to section\none hundred sixty-three of this article.\n (b) (1) Not later than one hundred twenty days after the effective\ndate of this section, the commissioner shall develop or contract to\ndevelop, using credible information available to the public, a list of\npersons it determines engage in investment activities in Iran as\ndescribed in subdivision two of this section. If the commissioner has\ncontracted to develop the list, the list shall be finally developed not\nlater than one hundred twenty days after this section shall take effect.\nSuch list, when completed, shall be posted on the website of the office\nof general services.\n (2) The commissioner shall update the list every one hundred eighty\ndays.\n (3) Before finalizing an initial list pursuant to subparagraph one of\nthis paragraph or an updated list pursuant to subparagraph two of this\nparagraph, the commissioner shall do all of the following before a\nperson is included on the list:\n (A) Provide ninety days' written notice of the commissioner's intent\nto include the person on the list. The notice shall inform the person\nthat inclusion on the list would make the person a non-responsive bidder\nor offerer. The notice shall specify that the person, if it ceases its\nengagement in investment activities in Iran as described in subdivision\ntwo of this section, may be removed from the list.\n (B) The commissioner shall provide a person with an opportunity to\ncomment in writing that it is not engaged in investment activities in\nIran. If the person demonstrates to the commissioner that the person is\nnot engaged in investment activities in Iran as described in subdivision\ntwo of this section, the person shall not be included on the list.\n (4) The commissioner shall make every effort to avoid erroneously\nincluding a person on the list.\n (5) A person that has a contract with the New York state common\nretirement fund, the New York state and local employees' retirement\nsystem, the New York state and local police and fire retirement system,\nor the New York state teachers' retirement system, shall not be deemed a\nperson that engages in investment activities in Iran as described in\nsubdivision two of this section on the basis of those contracts or\ninvestments with such retirement systems, provided however, that nothing\nin this subparagraph shall prevent the New York state common retirement\nfund, the New York state and local employees' retirement system, New\nYork state and local police and fire retirement system or the New York\nstate teachers' retirement system from pursuing a policy of divestment\nin the Iranian economy.\n (c) Notwithstanding paragraph (a) of this subdivision, a state agency\nmay permit a person engaged in investment activities in Iran as\ndescribed by subdivision two of this section to be deemed a responsive\nbidder or offerer, on a case-by-case basis with a state agency if:\n (1) The investment activities in Iran were made before the effective\ndate of this section, the investment activities in Iran have not been\nexpanded or renewed after the effective date of this section, and the\nperson has adopted, publicized, and is implementing a formal plan to\ncease the investment activities in Iran and to refrain from engaging in\nany new investments in Iran; or\n (2) The state agency makes a determination that the commodities or\nservices are necessary for the state agency to perform its functions and\nthat, absent such an exemption, the state agency would be unable to\nobtain the commodities or services for which the contract is offered.\nSuch determination shall be entered into the procurement record.\n 4. (a) A state agency shall require a person that submits a bid or\noffer in response to a notice of procurement, or that proposes to renew\nan existing procurement contract with a state agency or proposes to\nassume the responsibility of a contractor pursuant to a procurement\ncontract with a state agency or otherwise proposes to enter into a\ncontract with a state agency with respect to a contract for commodities,\nservices, construction, or contracts entered pursuant to sections six\nand seven of the New York state printing and public documents law,\nsection eight of the public buildings law, or section thirty-eight of\nthe highway law, to certify, at the time the bid is submitted or the\ncontract is renewed or assigned, that the person or the assignee is not\nidentified on a list created pursuant to paragraph (b) of subdivision\nthree of this section. A state agency shall include certification\ninformation in the procurement record.\n (b) A person that submits a bid or offer in response to a notice of\nprocurement or that proposes to renew an existing procurement contract\nwith a state agency or proposes to assume the responsibility of a\ncontractor pursuant to a procurement contract with a state agency, or\notherwise proposes to enter into a contract with a state agency with\nrespect to a contract for commodities, services, construction, or\ncontracts entered pursuant to sections six and seven of the New York\nstate printing and public documents law, section eight of the public\nbuildings law, or section thirty-eight of the highway law shall not\nutilize, on the contract with the state agency, any subcontractor that\nis identified on a list created pursuant to paragraph (b) of subdivision\nthree of this section.\n 5. Upon receiving information that a person who has made the\ncertification required by subdivision four of this section is in\nviolation thereof, the state agency shall review such information and\noffer the person an opportunity to respond. If the person fails to\ndemonstrate that is has ceased its engagement in the investment which is\nin violation of this act within ninety days after the determination of\nsuch violation, then the state agency shall take such action as may be\nappropriate and provided for by law, rule or contract, including, but\nnot limited to, imposing sanctions, seeking compliance, recovering\ndamages or declaring the contractor in default.\n 6. The commissioner shall report to the governor and the legislature\nannually on or before October first, on the status of the federal\n"Comprehensive Iran Sanctions, Accountability, and Divestment Act of\n2010" (Public Law 111-195), "the Iran divestment act of 2012", and any\nrules or regulations adopted thereunder.\n