Bill Text: FL H0959 | 2012 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: State and Local Government Relations with Cuba or Syria

Spectrum: Moderate Partisan Bill (Republican 10-2-1)

Status: (Engrossed - Dead) 2012-03-09 - Ordered enrolled -HJ 1714 [H0959 Detail]

Download: Florida-2012-H0959-Introduced.html

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HB 959

1	A bill to be entitled
2	An act relating to scrutinized companies; amending s.
3	215.473, F.S.; providing legislative findings;
4	revising and providing definitions; requiring the
5	State Board of Administration to identify all
6	companies in which public moneys are invested that are
7	doing certain types of business in or with Cuba or
8	Syria; requiring the board to create and maintain
9	certain scrutinized companies lists that name all such
10	companies; requiring the board to periodically contact
11	all scrutinized companies and encourage them to
12	refrain from engaging in certain types of business in
13	or with Cuba or Syria; requiring the board to inform
14	scrutinized companies of their status as a scrutinized
15	company and to provide notice of the opportunity to
16	clarify the nature of the company's business
17	activities; providing for removal of a company from
18	the list under certain conditions; requiring the board
19	to divest all publicly traded securities of a
20	scrutinized company under certain conditions;
21	providing for reintroduction of a company onto the
22	list; providing exceptions to the divestment
23	requirement; prohibiting the board from acquiring
24	securities of scrutinized companies that have active
25	business operations; providing an exemption to the
26	divestment requirement and investment prohibition;
27	providing an additional exception from the divestment
28	requirement and the investment prohibition for certain
29	indirect holdings in actively managed investment
30	funds; providing procedures of the board with respect
31	to requesting removal of scrutinized companies from
32	actively managed investment funds and defined
33	contribution plans or the creation of a similar fund
34	that excludes such companies; providing reporting
35	requirements of the board; providing for cessation of
36	assembly of the Scrutinized Companies with Activities
37	in Cuba List and the Scrutinized Companies with
38	Activities in Syria List, cessation of engagement and
39	divestment of such companies, and restoration of
40	authority to reinvest in such companies under
41	specified conditions; authorizing the board to cease
42	divesting or reinvesting in certain companies having
43	scrutinized active business operations under specified
44	conditions; amending s. 287.135, F.S.; prohibiting a
45	state agency or local governmental entity from
46	contracting for goods and services of more than a
47	certain amount with a company that is on the
48	Scrutinized Companies with Activities in Cuba List or
49	the Scrutinized Companies with Activities in Syria
50	List; requiring a contract provision that allows for
51	termination of the contract if the company is found to
52	have been placed on such list; providing exceptions;
53	requiring certification upon submission of a bid or
54	proposal for a contract, or before a company enters
55	into or renews a contract, with an agency or
56	governmental entity that the company is not on the
57	Scrutinized Companies with Activities in Cuba List or
58	the Scrutinized Companies with Activities in Syria
59	List; providing procedures upon determination that a
60	company has submitted a false certification; providing
61	for civil action; providing penalties; providing
62	attorney fees and costs; providing a statute of
63	repose; prohibiting a private right of action;
64	requiring the Department of Management Services to
65	notify the Attorney General after the act becomes law;
66	providing an effective date.
67
68	WHEREAS, with a population of approximately 11 million,
69	Cuba is a totalitarian communist state that does not tolerate
70	opposition to official policy, and
71	WHEREAS, the current government of Cuba assumed power on
72	January 1, 1959, and
73	WHEREAS, although the Cuban constitution recognizes the
74	unicameral National Assembly as the supreme authority in Cuba,
75	the Communist Party is recognized in the constitution as the
76	only legal party and "the superior leading force of society and
77	of the state," and
78	WHEREAS, elections in January 2008 for the Cuban National
79	Assembly were neither free nor fair, and all of the candidates
80	had to be preapproved by a Communist Party candidacy commission,
81	with the result that the Communist Party candidates and their
82	allies won 98.7 percent of the vote and 607 of 614 seats in the
83	National Assembly, and
84	WHEREAS, the Cuban government continues to deny its
85	citizens their basic human rights, including the right to change
86	their government, and has committed numerous and serious abuses
87	against the citizens of Cuba, and
88	WHEREAS, among the human rights problems reported within
89	Cuba are beatings and abuse of prisoners and detainees, harsh
90	and life-threatening prison conditions, including denial of
91	medical care, harassment, and beatings, and threats against
92	political opponents by government-recruited mobs, police, and
93	state security officials who acted with impunity, and
94	WHEREAS, arbitrary arrest and detention of human rights
95	advocates and members of independent professional organizations,
96	and denial of fair trial for at least 194 political prisoners
97	and as many as 5,000 persons who have been convicted of
98	potential "dangerousness" without being charged with any
99	specific crime are also reported, and
100	WHEREAS, there have also been severe limitations on freedom
101	of speech and the press, denial of peaceful assembly and
102	association, restrictions on freedom of movement, including
103	selective denial of exit permits to citizens and the forcible
104	removal of persons from Havana to their hometowns, restrictions
105	on freedom of religion and refusal to recognize domestic human
106	rights groups or permit them to function legally, discrimination
107	against persons of African descent, and severe restrictions on
108	workers' rights, including the right to form independent unions,
109	and
110	WHEREAS, other problems that are prevalent in Cuba include
111	increasing incidences of domestic violence, underage
112	prostitution, and trafficking in human beings, and
113	WHEREAS, Cuba is on the United States Department of State's
114	list of State Sponsors of Terrorism, and for nearly half a
115	century the United States has unilaterally imposed an economic,
116	commercial, and financial embargo against Cuba, and
117	WHEREAS, the embargo, partially imposed on Cuba in October
118	1960, was enacted after Cuba nationalized the properties of
119	United States citizens and corporations and it was strengthened
120	to a near-total embargo on February 7, 1962, and
121	WHEREAS, though the severity and the scope of the sanctions
122	have varied, depending upon political developments in Cuba, the
123	United States, and the rest of the world, the United States
124	Government Accountability Office has stated that "the embargo on
125	Cuba is the most comprehensive set of United States sanctions on
126	any country, including other countries designated by the United
127	States Government to be state sponsors of terrorism," and
128	WHEREAS, also on the Department of State's list of State
129	Sponsors of Terrorism is the nation of Syria, and
130	WHEREAS, on March 8, 1963, the Baath Party in Syria enacted
131	an emergency law that suspended basic constitutional rights such
132	as freedom of speech and assembly and instituted martial law,
133	and
134	WHEREAS, in February 1982, the Syrian army, under the
135	orders of Syrian President Hafez al-Assad, effectively ended a
136	campaign begun in 1976 by Sunni Islamic groups against the Assad
137	regime with what is now known as "the Hama massacre," the
138	quelling of a revolt by the Sunni Muslim community against the
139	al-Assad regime that resulted in Syrian deaths, the estimates of
140	which range from 10,000 to possibly as many as 40,000 Syrian
141	citizens according to the Syrian Human Rights Committee, and
142	WHEREAS, the Hama massacre has been described as being
143	among "the single deadliest acts by any Arab government against
144	its own people in the Middle East," and
145	WHEREAS, in 2011 the "Syrian uprising" began in that
146	country, and
147	WHEREAS, the Syrian uprising is an ongoing internal
148	conflict occurring in Syria that began with protests that
149	started on January 26, 2011, and then escalated to an uprising
150	by March 15, 2011, and
151	WHEREAS, the demands of protesters in this sustained
152	campaign of civil resistance include the allowance by the ruling
153	Baath Party of other political parties, the end of President
154	Bashar al-Assad's presidency, equal rights for Kurds, and broad
155	political freedoms such as freedom of the press, free speech,
156	and freedom to assemble, and
157	WHEREAS, as protests continued, the Syrian government used
158	tanks and snipers to force Syrian citizens off the streets,
159	water and electricity were shut off, and security forces began
160	confiscating flour and food in various areas of the country, and
161	WHEREAS, violence escalated as the crisis wore on and as a
162	result more than 3,000 people were killed, many more were
163	injured, and thousands of protesters have been detained, with
164	dozens of detainees reportedly having been tortured and killed,
165	and
166	WHEREAS, since the beginning of the uprising, the Syrian
167	government has made several concessions, including the repeal on
168	April 21, 2011, of the 1963 emergency law which allowed the
169	government sweeping authority to suspend constitutional rights,
170	though the concessions are widely considered trivial and
171	superficial by protesters demanding more meaningful reform,
172	especially in light of the fact that government crackdowns on
173	protesters have continued to heighten, and
174	WHEREAS, the oppressive Assad Regime blatantly murders
175	protesters of the regime in mass, regularly detains political
176	and human rights activists and journalists, engages in
177	widespread media censorship, and is associated with the
178	disappearance of citizens opposed to the Assad regime, and
179	WHEREAS, the United States Government and other nations
180	throughout the world have openly called for President Assad to
181	step down from office, and
182	WHEREAS, effective August 18, 2011, President Barack Obama
183	issued a new Executive Order imposing significant new economic
184	sanctions on Syria, and
185	WHEREAS, the action greatly expanded United States
186	international trade restrictions against Syria and its
187	government in certain important respects, representing a more
188	comprehensive unilateral economic embargo, and
189	WHEREAS, most notably, the sanctions now include a freeze
190	on the property and interests of property of the Government of
191	Syria in the United States or held by United States persons,
192	defined to include entities in the United States and their
193	foreign branch offices, United States citizens or lawful
194	permanent residents, and anyone of any nationality acting or
195	located within the United States, and
196	WHEREAS, the sanctions include prohibitions on United
197	States persons engaging in any transactions with the Syrian
198	Government, making new investments in Syria, providing any
199	services to Syria, or conducting business dealings in or related
200	to petroleum or petroleum products of Syrian origin, and
201	WHEREAS, the sanctions also include a ban on the
202	importation of Syrian-origin petroleum products into the United
203	States and a prohibition against United States persons
204	facilitating, approving, financing, or guaranteeing a
205	transaction or dealing with a foreign person related to any of
206	the prohibitions in place against Syria, and
207	WHEREAS, both the Government of Cuba and the Government of
208	Syria have repeatedly committed human rights violations through
209	intimidation by military and security forces, through
210	bureaucratic and administrative obstruction, through acts of
211	terrorism and atrocities directed against civilians, and through
212	the displacement of citizens from their homes, and
213	WHEREAS, the Federal Government has imposed sanctions
214	against the Government of Cuba and the Government of Syria, and
215	such sanctions are monitored through the United States Treasury
216	Department's Office of Foreign Assets Control (OFAC), and
217	WHEREAS, according to a former chair of the United States
218	Securities and Exchange Commission, the fact that a foreign
219	company is doing material business with a country, government,
220	or entity on OFAC's sanctions list is, in the SEC staff's view,
221	substantially likely to be significant to a reasonable
222	investor's decision about whether to invest in that company, and
223	WHEREAS, because the United States Secretary of State has
224	determined that both Cuba and Syria are countries whose
225	governments have provided support for acts of international
226	terrorism, as a result, the United States has restricted
227	assistance, defense exports, defense sales, financial
228	transactions, and various other transactions with the Government
229	of Cuba and the Government of Syria, and
230	WHEREAS, a 2006 report by the United States House of
231	Representatives states that "a company's association with
232	sponsors of terrorism and human rights abuses, no matter how
233	large or small, can have a materially adverse result on a public
234	company's operations, financial condition, earnings, and stock
235	prices, all of which can negatively affect the value of an
236	investment," and
237	WHEREAS, in response to the financial risk posed by
238	investments in companies doing business with a state that
239	sponsors terrorists, the Securities and Exchange Commission
240	established its Office of Global Security Risk to provide for
241	enhanced disclosure of material information regarding such
242	companies, and
243	WHEREAS, divestment actions precipitated by such
244	sponsorship of terrorism and human rights violations encompass
245	universities, municipalities, states, and private pension plans,
246	and
247	WHEREAS, companies facing such widespread divestment
248	present further material risk to remaining investors, and
249	WHEREAS, it is a fundamental responsibility of the State of
250	Florida to decide where, how, and by whom financial resources in
251	its control should be invested, taking into account numerous
252	pertinent factors, and
253	WHEREAS, it is the prerogative and desire of the State of
254	Florida, with respect to investment resources in its control and
255	to the extent reasonable, with due consideration for return on
256	investment on behalf of the state and its investment
257	beneficiaries, not to participate in an ownership or capital-
258	providing capacity with entities that provide significant
259	practical support for terrorism and human rights violations,
260	including certain non-United States companies presently doing
261	business in such countries, and
262	WHEREAS, while divestiture should be considered with the
263	intent to improve investment performance and by the rules of
264	prudence, fiduciaries must take into account all relevant
265	substantive factors in arriving at an investment decision, and
266	WHEREAS, the State of Florida is deeply concerned about
267	investments in publicly traded companies that have business
268	activities in and ties to Cuba and Syria as a financial risk to
269	the shareholders, and
270	WHEREAS, by investing in publicly traded companies having
271	ties to Cuba and Syria, the Florida State Board of
272	Administration is putting the funds it oversees at substantial
273	financial risk, and
274	WHEREAS, divestiture from markets that are vulnerable to
275	embargo, loan restrictions, and sanctions from the United States
276	and the international community, including the United Nations
277	Security Council, is in accordance with the rules of prudence,
278	and
279	WHEREAS, the Legislature finds that this act should remain
280	in effect only insofar as it continues to be consistent with and
281	does not unduly interfere with the foreign policy of the United
282	States as determined by the Federal Government, and
283	WHEREAS, to protect Florida's assets, it is in the best
284	interest of the state to enact a statutory prohibition regarding
285	the investments managed by the State Board of Administration
286	doing business in Cuba and Syria, NOW, THEREFORE,
287
288	Be It Enacted by the Legislature of the State of Florida:
289
290	Section 1.  Section 215.473, Florida Statutes, is amended
291	to read:
292	215.473  Divestiture by the State Board of Administration;
293	Sudan; Iran; Cuba; Syria.-
294	(1)  DEFINITIONS.-As used in this act, the term:
295	(a)  "Active business operations" means all business
296	operations that are not inactive business operations.
297	(b)  "Business operations" means engaging in commerce in
298	any form in Sudan, or Iran, Cuba, or Syria, including, but not
299	limited to, acquiring, developing, maintaining, owning, selling,
300	possessing, leasing, or operating equipment, facilities,
301	personnel, products, services, personal property, real property,
302	or any other apparatus of business or commerce.
303	(c)  "Company" means any sole proprietorship, organization,
304	association, corporation, partnership, joint venture, limited
305	partnership, limited liability partnership, limited liability
306	company, or other entity or business association, including all
307	wholly owned subsidiaries, majority-owned subsidiaries, parent
308	companies, or affiliates of such entities or business
309	associations, that exists for the purpose of making profit.
310	(d)  "Complicit" means taking actions during any preceding
311	20-month period which have directly supported or promoted:
312	1.  The genocidal campaign in Darfur, including, but not
313	limited to, preventing Darfur's victimized population from
314	communicating with each other;
315	2.  Encouraging Sudanese citizens to speak out against an
316	internationally approved security force for Darfur;
317	3.  Actively working to deny, cover up, or alter the record
318	on human rights abuses in Darfur; or
319	4.  Other similar actions.
320	(e)  "Cuba" means the nation of Cuba.
321	(f)(e)  "Direct holdings" in a company means all securities
322	of that company that are held directly by the public fund or in
323	an account or fund in which the public fund owns all shares or
324	interests.
325	(g)  "Government of Cuba" means the government of Cuba,
326	under the control of General Raul Castro and the Cuban Communist
327	Party, its instrumentalities, and companies owned or controlled
328	by the government of Cuba.
329	(h)(f)  "Government of Iran" means the government of Iran,
330	its instrumentalities, and companies owned or controlled by the
331	government of Iran.
332	(i)(g)  "Government of Sudan" means the government in
333	Khartoum, Sudan, that is led by the National Congress Party,
334	formerly known as the National Islamic Front, or any successor
335	government formed on or after October 13, 2006, including the
336	coalition National Unity Government agreed upon in the
337	Comprehensive Peace Agreement for Sudan, and does not include
338	the regional government of southern Sudan.
339	(j)  "Government of Syria" means the government of Syria,
340	under the control of President Bashar Al-Assad and the Arab
341	Socialist Baath Party, its instrumentalities, and companies
342	owned or controlled by the government of Syria.
343	(k)(h)  "Inactive business operations" means the mere
344	continued holding or renewal of rights to property previously
345	operated for the purpose of generating revenues but not
346	presently deployed for such purpose.
347	(l)(i)  "Indirect holdings" in a company means all
348	securities of that company that are held in an account or fund,
349	such as a mutual fund, managed by one or more persons not
350	employed by the public fund, in which the public fund owns
351	shares or interests together with other investors not subject to
352	the provisions of this act.
353	(m)(j)  "Iran" means the Islamic Republic of Iran.
354	(n)(k)  "Marginalized populations of Sudan" include, but
355	are not limited to, the portion of the population in the Darfur
356	region that has been genocidally victimized; the portion of the
357	population of southern Sudan victimized by Sudan's north-south
358	civil war; the Beja, Rashidiya, and other similarly underserved
359	groups of eastern Sudan; the Nubian and other similarly
360	underserved groups in Sudan's Abyei, Southern Blue Nile, and
361	Nuba Mountain regions; and the Amri, Hamadab, Manasir, and other
362	similarly underserved groups of northern Sudan.
363	(o)(l)  "Military equipment" means weapons, arms, military
364	supplies, and equipment that may readily be used for military
365	purposes, including, but not limited to, radar systems,
366	military-grade transport vehicles, or supplies or services sold
367	or provided directly or indirectly to any force actively
368	participating in armed conflict in Sudan, Cuba, or Syria.
369	(p)(m)  "Mineral-extraction activities" include the
370	exploring, extracting, processing, transporting, or wholesale
371	selling or trading of elemental minerals or associated metal
372	alloys or oxides (ore), including gold, copper, chromium,
373	chromite, diamonds, iron, iron ore, silver, tungsten, uranium,
374	and zinc, as well as facilitating such activities, including
375	providing supplies or services in support of such activities.
376	(q)(n)  "Oil-related activities" include, but are not
377	limited to, owning rights to oil blocks; exporting, extracting,
378	producing, refining, processing, exploring for, transporting,
379	selling, or trading of oil; constructing, maintaining, or
380	operating a pipeline, refinery, or other oil-field
381	infrastructure; and facilitating such activities, including
382	providing supplies or services in support of such activities,
383	except that the mere retail sale of gasoline and related
384	consumer products is not considered an oil-related activity.
385	(r)(o)  "Petroleum resources" means petroleum, petroleum
386	byproducts, or natural gas.
387	(s)(p)  "Power-production activities" means any business
388	operation that involves a project commissioned by the National
389	Electricity Corporation (NEC) of Sudan or other similar entity
390	of the government of Sudan whose purpose is to facilitate power
391	generation and delivery, including, but not limited to,
392	establishing power-generating plants or hydroelectric dams,
393	selling or installing components for the project, providing
394	service contracts related to the installation or maintenance of
395	the project, as well as facilitating such activities, including
396	providing supplies or services in support of such activities.
397	(t)(q)  "Public fund" means all funds, assets, trustee, and
398	other designates under the State Board of Administration
399	pursuant to chapter 121.
400	(u)(r)  "Scrutinized active business operations" means
401	active business operations that have resulted in a company
402	becoming a scrutinized company.
403	(v)(s)  "Scrutinized business operations" means business
404	operations that have resulted in a company becoming a
405	scrutinized company.
406	(w)(t)  "Scrutinized company" means any company that meets
407	any of the following criteria:
408	1.  The company has business operations that involve
409	contracts with or provision of supplies or services to the
410	government of Sudan, companies in which the government of Sudan
411	has any direct or indirect equity share, consortiums or projects
412	commissioned by the government of Sudan, or companies involved
413	in consortiums or projects commissioned by the government of
414	Sudan, and:
415	a.  More than 10 percent of the company's revenues or
416	assets linked to Sudan involve oil-related activities or
417	mineral-extraction activities; less than 75 percent of the
418	company's revenues or assets linked to Sudan involve contracts
419	with or provision of oil-related or mineral-extracting products
420	or services to the regional government of southern Sudan or a
421	project or consortium created exclusively by that regional
422	government; and the company has failed to take substantial
423	action; or
424	b.  More than 10 percent of the company's revenues or
425	assets linked to Sudan involve power-production activities; less
426	than 75 percent of the company's power-production activities
427	include projects whose intent is to provide power or electricity
428	to the marginalized populations of Sudan; and the company has
429	failed to take substantial action.
430	2.  The company is complicit in the Darfur genocide.
431	3.  The company supplies military equipment within Sudan,
432	unless it clearly shows that the military equipment cannot be
433	used to facilitate offensive military actions in Sudan or the
434	company implements rigorous and verifiable safeguards to prevent
435	use of that equipment by forces actively participating in armed
436	conflict. Examples of safeguards include post-sale tracking of
437	such equipment by the company, certification from a reputable
438	and objective third party that such equipment is not being used
439	by a party participating in armed conflict in Sudan, or sale of
440	such equipment solely to the regional government of southern
441	Sudan or any internationally recognized peacekeeping force or
442	humanitarian organization.
443	4.  The company has business operations that involve
444	contracts with or provision of supplies or services to the
445	government of Iran, companies in which the government of Iran
446	has any direct or indirect equity share, consortiums, or
447	projects commissioned by the government of Iran, or companies
448	involved in consortiums or projects commissioned by the
449	government of Iran and:
450	a.  More than 10 percent of the company's total revenues or
451	assets are linked to Iran and involve oil-related activities or
452	mineral-extraction activities; and the company has failed to
453	take substantial action; or
454	b.  The company has, with actual knowledge, on or after
455	August 5, 1996, made an investment of $20 million or more, or
456	any combination of investments of at least $10 million each,
457	which in the aggregate equals or exceeds $20 million in any 12-
458	month period, and which directly or significantly contributes to
459	the enhancement of Iran's ability to develop the petroleum
460	resources of Iran.
461	5.  The company has business operations that involve
462	contracts with or provision of supplies or services to the
463	government of Cuba, companies in which the government of Cuba
464	has any direct or indirect equity share, consortiums or projects
465	commissioned by the government of Cuba, or companies involved in
466	consortiums or projects commissioned by the government of Cuba
467	and:
468	a.  More than 10 percent of the company's total revenues or
469	assets are linked to Cuba, and the company has failed to take
470	substantial action; or
471	b.  The company has, with actual knowledge, on or after
472	January 1, 1959, made an investment of $20 million or more, or
473	any combination of investments of at least $10 million each,
474	which in the aggregate equals or exceeds $20 million in any 12-
475	month period.
476	6.  The company supplies military equipment within Cuba,
477	unless it clearly shows that the military equipment cannot be
478	used to facilitate offensive military actions in Cuba or the
479	company implements rigorous and verifiable safeguards to prevent
480	use of that equipment by forces actively participating in armed
481	conflict. Examples of safeguards include post-sale tracking of
482	such equipment by the company, certification from a reputable
483	and objective third party that such equipment is not being used
484	by a party participating in armed conflict in Cuba, or sale of
485	such equipment solely to any internationally recognized
486	peacekeeping force or humanitarian organization.
487	7.  The company has business operations that involve
488	contracts with or provision of supplies or services to the
489	government of Syria, companies in which the government of Syria
490	has any direct or indirect equity share, consortiums or projects
491	commissioned by the government of Syria, or companies involved
492	in consortiums or projects commissioned by the government of
493	Syria and:
494	a.  More than 10 percent of the company's total revenues or
495	assets are linked to Syria and involve oil-related activities,
496	and the company has failed to take substantial action; or
497	b.  The company has, with actual knowledge, on or after
498	March 8, 1963, made an investment of $20 million or more, or any
499	combination of investments of at least $10 million each, which
500	in the aggregate equals or exceeds $20 million in any 12-month
501	period, and which directly or significantly contributes to the
502	enhancement of Syria's ability to develop the petroleum
503	resources of Syria.
504	8.  The company supplies military equipment within Syria,
505	unless it clearly shows that the military equipment cannot be
506	used to facilitate offensive military actions in Syria or the
507	company implements rigorous and verifiable safeguards to prevent
508	use of that equipment by forces actively participating in armed
509	conflict. Examples of safeguards include post-sale tracking of
510	such equipment by the company, certification from a reputable
511	and objective third party that such equipment is not being used
512	by a party participating in armed conflict in Syria, or sale of
513	such equipment solely to any internationally recognized
514	peacekeeping force or humanitarian organization.
515	(x)(u)  "Social-development company" means a company whose
516	primary purpose in Sudan is to provide humanitarian goods or
517	services, including medicine or medical equipment; agricultural
518	supplies or infrastructure; educational opportunities;
519	journalism-related activities; information or information
520	materials; spiritual-related activities; services of a purely
521	clerical or reporting nature; food, clothing, or general
522	consumer goods that are unrelated to oil-related activities;
523	mineral-extraction activities; or power-production activities.
524	(y)  "Substantial action specific to Cuba" means adopting,
525	publicizing, and implementing a formal plan to cease scrutinized
526	business operations within 1 year and to refrain from any such
527	new business operations.
528	(z)(v)  "Substantial action specific to Iran" means
529	adopting, publicizing, and implementing a formal plan to cease
530	scrutinized business operations within 1 year and to refrain
531	from any such new business operations.
532	(aa)(w)  "Substantial action specific to Sudan" means
533	adopting, publicizing, and implementing a formal plan to cease
534	scrutinized business operations within 1 year and to refrain
535	from any such new business operations; undertaking humanitarian
536	efforts in conjunction with an international organization, the
537	government of Sudan, the regional government of southern Sudan,
538	or a nonprofit entity evaluated and certified by an independent
539	third party to be substantially in a relationship to the
540	company's Sudan business operations and of benefit to one or
541	more marginalized populations of Sudan; or, through engagement
542	with the government of Sudan, materially improving conditions
543	for the genocidally victimized population in Darfur.
544	(bb)  "Substantial action specific to Syria" means
545	adopting, publicizing, and implementing a formal plan to cease
546	scrutinized business operations within 1 year and to refrain
547	from any such new business operations.
548	(cc)  "Syria" means the nation of Syria.
549	(2)  IDENTIFICATION OF COMPANIES.-
550	(a)  Within 90 days after the effective date of this act,
551	the public fund shall make its best efforts to identify all
552	scrutinized companies in which the public fund has direct or
553	indirect holdings or could possibly have such holdings in the
554	future. Such efforts include:
555	1.  Reviewing and relying, as appropriate in the public
556	fund's judgment, on publicly available information regarding
557	companies having business operations in Sudan, including
558	information provided by nonprofit organizations, research firms,
559	international organizations, and government entities;
560	2.  Contacting asset managers contracted by the public fund
561	that invest in companies having business operations in Sudan; or
562	3.  Contacting other institutional investors that have
563	divested from or engaged with companies that have business
564	operations in Sudan.
565	4.  Reviewing the laws of the United States regarding the
566	levels of business activity that would cause application of
567	sanctions for companies conducting business or investing in
568	countries that are designated state sponsors of terror.
569	(b)  By the first meeting of the public fund following the
570	90-day period described in paragraph (a), the public fund shall
571	assemble all scrutinized companies that fit criteria specified
572	in subparagraphs (1)(w)1., 2., and 3. (1)(t)1., 2., and 3. into
573	a "Scrutinized Companies with Activities in Sudan List," and
574	shall assemble all scrutinized companies that fit criteria
575	specified in subparagraph (1)(w)4. (1)(t)4. into a "Scrutinized
576	Companies with Activities in the Iran Petroleum Energy Sector
577	List,." shall assemble all scrutinized companies that fit
578	criteria specified in subparagraphs (1)(w)5. and 6. into a
579	"Scrutinized Companies with Activities in Cuba List," and shall
580	assemble all scrutinized companies that fit criteria specified
581	in subparagraphs (1)(w)7. and 8. into a "Scrutinized Companies
582	with Activities in Syria List."
583	(c)  The public fund shall update and make publicly
584	available quarterly the Scrutinized Companies with Activities in
585	Sudan List, and the Scrutinized Companies with Activities in the
586	Iran Petroleum Energy Sector List, the Scrutinized Companies
587	with Activities in Cuba List, and the Scrutinized Companies with
588	Activities in Syria List based on evolving information from,
589	among other sources, those listed in paragraph (a).
590	(d)  Notwithstanding the provisions of this act, a social-
591	development company that is not complicit in the Darfur genocide
592	is not considered a scrutinized company under subparagraph
593	(1)(w)1. (1)(t)1., subparagraph (1)(w)2. (1)(t)2., or
594	subparagraph (1)(w)3. (1)(t)3.
595	(3)  REQUIRED ACTIONS.-The public fund shall adhere to the
596	following procedure for assembling companies on the Scrutinized
597	Companies with Activities in Sudan List, and the Scrutinized
598	Companies with Activities in the Iran Petroleum Energy Sector
599	List, the Scrutinized Companies with Activities in Cuba List,
600	and the Scrutinized Companies with Activities in Syria List:
601	(a)  Engagement.-
602	1.  The public fund shall immediately determine the
603	companies on the Scrutinized Companies with Activities in Sudan
604	List, and the Scrutinized Companies with Activities in the Iran
605	Petroleum Energy Sector List, the Scrutinized Companies with
606	Activities in Cuba List, and the Scrutinized Companies with
607	Activities in Syria List in which the public fund owns direct or
608	indirect holdings.
609	2.  For each company identified in this paragraph that has
610	only inactive business operations, the public fund shall send a
611	written notice informing the company of this act and encouraging
612	it to continue to refrain from initiating active business
613	operations in Sudan, or Iran, Cuba, or Syria until it is able to
614	avoid scrutinized business operations. The public fund shall
615	continue such correspondence semiannually.
616	3.  For each company newly identified under this paragraph
617	that has active business operations, the public fund shall send
618	a written notice informing the company of its scrutinized
619	company status and that it may become subject to divestment by
620	the public fund. The notice must inform the company of the
621	opportunity to clarify its Sudan-related, or Iran-related, Cuba-
622	related, or Syria-related activities and encourage the company,
623	within 90 days, to cease its scrutinized business operations or
624	convert such operations to inactive business operations in order
625	to avoid qualifying for divestment by the public fund.
626	4.  If, within 90 days after the public fund's first
627	engagement with a company pursuant to this paragraph, that
628	company ceases scrutinized business operations, the company
629	shall be removed from the Scrutinized Companies with Activities
630	in Sudan List, and the Scrutinized Companies with Activities in
631	the Iran Petroleum Energy Sector List, the Scrutinized Companies
632	with Activities in Cuba List, and the Scrutinized Companies with
633	Activities in Syria List, and the provisions of this act shall
634	cease to apply to that company unless that company resumes
635	scrutinized business operations. If, within 90 days after the
636	public fund's first engagement, the company converts its
637	scrutinized active business operations to inactive business
638	operations, the company is subject to all provisions relating to
639	inactive business operations. A company may be removed from one
640	list but remain on the other list, in which case the company
641	shall be subject to the provisions applicable to the list on
642	which the company remains.
643	(b)  Divestment.-
644	1.  If, after 90 days following the public fund's first
645	engagement with a company pursuant to paragraph (a), the company
646	continues to have scrutinized active business operations, and
647	only while such company continues to have scrutinized active
648	business operations, the public fund shall sell, redeem, divest,
649	or withdraw all publicly traded securities of the company,
650	except as provided in paragraph (d), from the public fund's
651	assets under management within 12 months after the company's
652	most recent appearance on the Scrutinized Companies with
653	Activities in Sudan List, or on the Scrutinized Companies with
654	Activities in the Iran Petroleum Energy Sector List, the
655	Scrutinized Companies with Activities in Cuba List, or the
656	Scrutinized Companies with Activities in Syria List.
657	2.  If a company that ceased scrutinized active business
658	operations following engagement pursuant to paragraph (a)
659	resumes such operations, this paragraph immediately applies, and
660	the public fund shall send a written notice to the company. The
661	company shall also be immediately reintroduced onto the
662	Scrutinized Companies with Activities in Sudan List, or on the
663	Scrutinized Companies with Activities in the Iran Petroleum
664	Energy Sector List, the Scrutinized Companies with Activities in
665	Cuba List, or the Scrutinized Companies with Activities in Syria
666	List, as applicable.
667	(c)  Prohibition.-The public fund may not acquire
668	securities of companies on the Scrutinized Companies with
669	Activities in Sudan List, or the Scrutinized Companies with
670	Activities in the Iran Petroleum Energy Sector List, the
671	Scrutinized Companies with Activities in Cuba List, or the
672	Scrutinized Companies with Activities in Syria List that have
673	active business operations, except as provided in paragraph (d).
674	(d)  Exemption.-A company that the United States Government
675	affirmatively declares to be excluded from its present or any
676	future federal sanctions regime relating to Sudan, or Iran,
677	Cuba, or Syria is not subject to divestment or the investment
678	prohibition pursuant to paragraphs (b) and (c).
679	(e)  Excluded securities.-Notwithstanding the provisions of
680	this act, paragraphs (b) and (c) do not apply to indirect
681	holdings in actively managed investment funds. However, the
682	public fund shall submit letters to the managers of such
683	investment funds containing companies that have scrutinized
684	active business operations requesting that they consider
685	removing such companies from the fund or create a similar
686	actively managed fund having indirect holdings devoid of such
687	companies. If the manager creates a similar fund, the public
688	fund shall replace all applicable investments with investments
689	in the similar fund in an expedited timeframe consistent with
690	prudent investing standards. For the purposes of this section, a
691	private equity fund is deemed to be an actively managed
692	investment fund.
693	(f)  Further exclusions.-Notwithstanding any other
694	provision of this act, the public fund, when discharging its
695	responsibility for operation of a defined contribution plan,
696	shall engage the manager of the investment offerings in such
697	plans requesting that they consider removing scrutinized
698	companies from the investment offerings or create an alternative
699	investment offering devoid of scrutinized companies. If the
700	manager creates an alternative investment offering and the
701	offering is deemed by the public fund to be consistent with
702	prudent investor standards, the public fund shall consider
703	including such investment offering in the plan.
704	(4)  REPORTING.-
705	(a)  The public fund shall file a report with each member
706	of the Board of Trustees of the State Board of Administration,
707	the President of the Senate, and the Speaker of the House of
708	Representatives that includes the Scrutinized Companies with
709	Activities in Sudan List, and the Scrutinized Companies with
710	Activities in the Iran Petroleum Energy Sector List, the
711	Scrutinized Companies with Activities in Cuba List, and the
712	Scrutinized Companies with Activities in Syria List within 30
713	days after the list is created. This report shall be made
714	available to the public.
715	(b)  At each quarterly meeting of the Board of Trustees
716	thereafter, the public fund shall file a report, which shall be
717	made available to the public and to each member of the Board of
718	Trustees of the State Board of Administration, the President of
719	the Senate, and the Speaker of the House of Representatives, and
720	send a copy of that report to the United States Presidential
721	Special Envoy to Sudan, and the United States Presidential
722	Special Envoy to Iran, the United States Presidential Special
723	Envoy to Cuba, and the United States Presidential Special Envoy
724	to Syria, or an appropriate designee or successor, which
725	includes:
726	1.  A summary of correspondence with companies engaged by
727	the public fund under subparagraphs (3)(a)2. and 3.;
728	2.  All investments sold, redeemed, divested, or withdrawn
729	in compliance with paragraph (3)(b);
730	3.  All prohibited investments under paragraph (3)(c);
731	4.  Any progress made under paragraph (3)(e); and
732	5.  A list of all publicly traded securities held directly
733	by this state.
734	(5)  EXPIRATION.-This act expires upon the occurrence of
735	all of the following:
736	(a)  If any of the following occur, the public fund shall
737	no longer scrutinize companies according to subparagraphs
738	(1)(w)1., 2., and 3. (1)(t)1., 2., and 3. and shall no longer
739	assemble the Scrutinized Companies with Activities in Sudan
740	List, shall cease engagement and divestment of such companies,
741	and may reinvest in such companies as long as such companies do
742	not satisfy the criteria for inclusion in the Scrutinized
743	Companies with Activities in the Iran Petroleum Energy Sector
744	List, the Scrutinized Companies with Activities in Cuba List, or
745	the Scrutinized Companies with Activities in Syria List:
746	1.  The Congress or President of the United States,
747	affirmatively and unambiguously states, by means including, but
748	not limited to, legislation, executive order, or written
749	certification from the President to Congress, that the Darfur
750	genocide has been halted for at least 12 months;
751	2.  The United States revokes all sanctions imposed against
752	the government of Sudan;
753	3.  The Congress or President of the United States
754	affirmatively and unambiguously states, by means including, but
755	not limited to, legislation, executive order, or written
756	certification from the President to Congress, that the
757	government of Sudan has honored its commitments to cease attacks
758	on civilians, demobilize and demilitarize the Janjaweed and
759	associated militias, grant free and unfettered access for
760	deliveries of humanitarian assistance, and allow for the safe
761	and voluntary return of refugees and internally displaced
762	persons; or
763	4.  The Congress or President of the United States
764	affirmatively and unambiguously states, by means including, but
765	not limited to, legislation, executive order, or written
766	certification from the President to Congress, that mandatory
767	divestment of the type provided for in this act interferes with
768	the conduct of United States foreign policy.
769	(b)  If any of the following occur, the public fund shall
770	no longer scrutinize companies according to subparagraph
771	(1)(w)4. (1)(t)4. and shall no longer assemble the Scrutinized
772	Companies with Activities in the Iran Petroleum Energy Sector
773	List and shall cease engagement, investment prohibitions, and
774	divestment. The public fund may reinvest in such companies as
775	long as such companies do not satisfy the criteria for inclusion
776	in the Scrutinized Companies with Activities in Sudan List, the
777	Scrutinized Companies with Activities in Cuba List, or the
778	Scrutinized Companies with Activities in Syria List:
779	1.  The Congress or President of the United States
780	affirmatively and unambiguously states, by means including, but
781	not limited to, legislation, executive order, or written
782	certification from the President to Congress, that the
783	government of Iran has ceased to acquire weapons of mass
784	destruction and support international terrorism;
785	2.  The United States revokes all sanctions imposed against
786	the government of Iran; or
787	3.  The Congress or President of the United States
788	affirmatively and unambiguously declares, by means including,
789	but not limited to, legislation, executive order, or written
790	certification from the President to Congress, that mandatory
791	divestment of the type provided for in this act interferes with
792	the conduct of United States foreign policy.
793	(c)  If any of the following occur, the public fund shall
794	no longer scrutinize companies according to subparagraphs
795	(1)(w)5. and 6. and shall no longer assemble the Scrutinized
796	Companies with Activities in Cuba List and shall cease
797	engagement, investment prohibitions, and divestment. The public
798	fund may reinvest in such companies as long as such companies do
799	not satisfy the criteria for inclusion in the Scrutinized
800	Companies with Activities in Sudan List, the Scrutinized
801	Companies with Activities in the Iran Petroleum Energy Sector
802	List, or the Scrutinized Companies with Activities in Syria
803	List:
804	1.  The Congress or President of the United States
805	affirmatively and unambiguously states, by means including, but
806	not limited to, legislation, executive order, or written
807	certification from the President to Congress, that the
808	government of Cuba has ceased to acquire weapons of mass
809	destruction and support international terrorism;
810	2.  The United States revokes all sanctions imposed against
811	the government of Cuba; or
812	3.  The Congress or President of the United States
813	affirmatively and unambiguously declares, by means including,
814	but not limited to, legislation, executive order, or written
815	certification from the President to Congress, that mandatory
816	divestment of the type provided for in this act interferes with
817	the conduct of United States foreign policy.
818	(d)  If any of the following occur, the public fund shall
819	no longer scrutinize companies according to subparagraphs
820	(1)(w)7. and 8. and shall no longer assemble the Scrutinized
821	Companies with Activities in Syria List and shall cease
822	engagement, investment prohibitions, and divestment. The public
823	fund may reinvest in such companies as long as such companies do
824	not satisfy the criteria for inclusion in the Scrutinized
825	Companies with Activities in Sudan List, the Scrutinized
826	Companies with Activities in the Iran Petroleum Energy Sector
827	List, or the Scrutinized Companies with Activities in Cuba List:
828	1.  The Congress or President of the United States
829	affirmatively and unambiguously states, by means including, but
830	not limited to, legislation, executive order, or written
831	certification from the President to Congress, that the
832	government of Cuba has ceased to acquire weapons of mass
833	destruction and support international terrorism;
834	2.  The United States revokes all sanctions imposed against
835	the government of Syria; or
836	3.  The Congress or President of the United States
837	affirmatively and unambiguously declares, by means including,
838	but not limited to, legislation, executive order, or written
839	certification from the President to Congress, that mandatory
840	divestment of the type provided for in this act interferes with
841	the conduct of United States foreign policy.
842	(6)  INVESTMENT POLICY STATEMENT OBLIGATIONS.-The public
843	fund's actions taken in compliance with this act, including all
844	good faith determinations regarding companies as required by
845	this act, shall be adopted and incorporated into the public
846	fund's investment policy statement (the IPS) as set forth in s.
847	215.475.
848	(7)  REINVESTMENT IN CERTAIN COMPANIES HAVING SCRUTINIZED
849	ACTIVE BUSINESS OPERATIONS.-Notwithstanding any other provision
850	of this act to the contrary, the public fund may cease divesting
851	from certain scrutinized companies pursuant to paragraph (3)(b)
852	or reinvest in certain scrutinized companies from which it
853	divested pursuant to paragraph (3)(b) if clear and convincing
854	evidence shows that the value of all assets under management by
855	the public fund becomes equal to or less than 99.50 percent, or
856	50 basis points, of the hypothetical value of all assets under
857	management by the public fund assuming no divestment for any
858	company had occurred under paragraph (3)(b). Cessation of
859	divestment, reinvestment, or any subsequent ongoing investment
860	authorized by this act is limited to the minimum steps necessary
861	to avoid the contingency set forth in this subsection or that no
862	divestment of any company is required for less than fair value.
863	For any cessation of divestment, reinvestment, or subsequent
864	ongoing investment authorized by this act, the public fund shall
865	provide a written report to each member of the Board of Trustees
866	of the State Board of Administration, the President of the
867	Senate, and the Speaker of the House of Representatives in
868	advance of initial reinvestment, updated semiannually thereafter
869	as applicable, setting forth the reasons and justification,
870	supported by clear and convincing evidence, for its decisions to
871	cease divestment, reinvest, or remain invested in companies
872	having scrutinized active business operations. This act does not
873	apply to reinvestment in companies on the grounds that they have
874	ceased to have scrutinized active business operations.
875	Section 2.  Section 287.135, Florida Statutes, is amended
876	to read:
877	287.135  Prohibition against contracting with scrutinized
878	companies.-
879	(1)  In addition to the terms defined in ss. 287.012 and
880	215.473, as used in this section, the term:
881	(a)  "Awarding body" means, for purposes of state
882	contracts, an agency or the department, and for purposes of
883	local contracts, the governing body of the local governmental
884	entity.
885	(b)  "Local governmental entity" means a county,
886	municipality, special district, or other political subdivision
887	of the state.
888	(2)  A company that, at the time of bidding or submitting a
889	proposal for a new contract or renewal of an existing contract,
890	is on the Scrutinized Companies with Activities in Sudan List,
891	or the Scrutinized Companies with Activities in the Iran
892	Petroleum Energy Sector List, the Scrutinized Companies with
893	Activities in Cuba List, or the Scrutinized Companies with
894	Activities in Syria List, created pursuant to s. 215.473, is
895	ineligible for, and may not bid on, submit a proposal for, or
896	enter into or renew a contract with an agency or local
897	governmental entity for goods or services of $1 million or more.
898	(3)(a)  Any contract with an agency or local governmental
899	entity for goods or services of $1 million or more entered into
900	or renewed on or after July 1, 2011, through June 30, 2012, must
901	contain a provision that allows for the termination of such
902	contract at the option of the awarding body if the company is
903	found to have submitted a false certification as provided under
904	subsection (5) or been placed on the Scrutinized Companies with
905	Activities in Sudan List or the Scrutinized Companies with
906	Activities in the Iran Petroleum Energy Sector List.
907	(b)  Any contract with an agency or local governmental
908	entity for goods or services of $1 million or more entered into
909	or renewed on or after July 1, 2012, must contain a provision
910	that allows for the termination of such contract at the option
911	of the awarding body if the company is found to have submitted a
912	false certification as provided under subsection (5) or been
913	placed on the Scrutinized Companies with Activities in Sudan
914	List, the Scrutinized Companies with Activities in the Iran
915	Petroleum Energy Sector List, the Scrutinized Companies with
916	Activities in Cuba List, or the Scrutinized Companies with
917	Activities in Syria List.
918	(4)  Notwithstanding subsection (2) or subsection (3), an
919	agency or local governmental entity, on a case-by-case basis,
920	may permit a company on the Scrutinized Companies with
921	Activities in Sudan List, or the Scrutinized Companies with
922	Activities in the Iran Petroleum Energy Sector List, the
923	Scrutinized Companies with Activities in Cuba List, or the
924	Scrutinized Companies with Activities in Syria List to be
925	eligible for, bid on, submit a proposal for, or enter into or
926	renew a contract for goods or services of $1 million or more
927	under either of the following conditions set forth in paragraph
928	(a) or the conditions set forth in paragraph (b):
929	(a)1.  With respect to a company on the Scrutinized
930	Companies with Activities in Sudan List or the Scrutinized
931	Companies with Activities in the Iran Petroleum Energy Sector
932	List, all of the following occur:
933	a.1.  The scrutinized business operations were made before
934	July 1, 2011.
935	b.2.  The scrutinized business operations have not been
936	expanded or renewed after July 1, 2011.
937	c.3.  The agency or local governmental entity determines
938	that it is in the best interest of the state or local community
939	to contract with the company.
940	d.4.  The company has adopted, has publicized, and is
941	implementing a formal plan to cease scrutinized business
942	operations and to refrain from engaging in any new scrutinized
943	business operations.
944	2.  With respect to a company on the Scrutinized Companies
945	with Activities in Cuba List or the Scrutinized Companies with
946	Activities in Syria List, all of the following occur:
947	a.  The scrutinized business operations were made before
948	July 1, 2012.
949	b.  The scrutinized business operations have not been
950	expanded or renewed after July 1, 2012.
951	c.  The agency or local governmental entity determines that
952	it is in the best interest of the state or local community to
953	contract with the company.
954	d.  The company has adopted, has publicized, and is
955	implementing a formal plan to cease scrutinized business
956	operations and to refrain from engaging in any new scrutinized
957	business operations.
958	(b)  One of the following occurs:
959	1.  The local governmental entity makes a public finding
960	that, absent such an exemption, the local governmental entity
961	would be unable to obtain the goods or services for which the
962	contract is offered.
963	2.  For a contract with an executive agency, the Governor
964	makes a public finding that, absent such an exemption, the
965	agency would be unable to obtain the goods or services for which
966	the contract is offered.
967	3.  For a contract with an office of a state constitutional
968	officer other than the Governor, the state constitutional
969	officer makes a public finding that, absent such an exemption,
970	the office would be unable to obtain the goods or services for
971	which the contract is offered.
972	(5)  At the time a company submits a bid or proposal for a
973	contract or before the company enters into or renews a contract
974	with an agency or governmental entity for goods or services of
975	$1 million or more, the company must certify that the company is
976	not on the Scrutinized Companies with Activities in Sudan List,
977	or the Scrutinized Companies with Activities in the Iran
978	Petroleum Energy Sector List, the Scrutinized Companies with
979	Activities in Cuba List, or the Scrutinized Companies with
980	Activities in Syria List.
981	(a)  If, after the agency or the local governmental entity
982	determines, using credible information available to the public,
983	that the company has submitted a false certification, the agency
984	or local governmental entity shall provide the company with
985	written notice of its determination. The company shall have 90
986	days following receipt of the notice to respond in writing and
987	to demonstrate that the determination of false certification was
988	made in error. If the company does not make such demonstration
989	within 90 days after receipt of the notice, the agency or the
990	local governmental entity shall bring a civil action against the
991	company. If a civil action is brought and the court determines
992	that the company submitted a false certification, the company
993	shall pay the penalty described in subparagraph 1. and all
994	reasonable attorney attorney's fees and costs, including any
995	costs for investigations that led to the finding of false
996	certification.
997	1.  A civil penalty equal to the greater of $2 million or
998	twice the amount of the contract for which the false
999	certification was submitted shall be imposed.
1000	2.  The company is ineligible to bid on any contract with
1001	an agency or local governmental entity for 3 years after the
1002	date the agency or local governmental entity determined that the
1003	company submitted a false certification.
1004	(b)  A civil action to collect the penalties described in
1005	paragraph (a) must commence within 3 years after the date the
1006	false certification is submitted.
1007	(6)  Only the agency or local governmental entity that is a
1008	party to the contract may cause a civil action to be brought
1009	under this section. This section does not create or authorize a
1010	private right of action or enforcement of the penalties provided
1011	in this section. An unsuccessful bidder, or any other person
1012	other than the agency or local governmental entity, may not
1013	protest the award of a contract or contract renewal on the basis
1014	of a false certification.
1015	(7)  This section preempts any ordinance or rule of any
1016	agency or local governmental entity involving public contracts
1017	for goods or services of $1 million or more with a company
1018	engaged in scrutinized business operations.
1019	(8)  The department shall submit to the Attorney General of
1020	the United States a written notice:
1021	(a)  Describing this section within 30 days after July 1,
1022	2011.
1023	(b)  Within 30 days after July 1, 2012, apprising the
1024	Attorney General of the United States of the inclusion of
1025	companies on the Scrutinized Companies with Activities in Cuba
1026	List and the Scrutinized Companies with Activities in Syria List
1027	within the provisions of this section.
1028	(9)  This section becomes inoperative on the date that
1029	federal law ceases to authorize the states to adopt and enforce
1030	the contracting prohibitions of the type provided for in this
1031	section.
1032	Section 3.  This act shall take effect July 1, 2012.

CODING: Words stricken are deletions; words underlined are additions.