Bill Text: MI HB5479 | 2011-2012 | 96th Legislature | Engrossed
Bill Title: State financing and management; purchasing; engaging in contracts with companies that have business activities in Iran; prohibit. Creates new act.
Spectrum: Moderate Partisan Bill (Republican 20-4)
Status: (Introduced - Dead) 2012-04-26 - Referred To Committee On Banking And Financial Institutions [HB5479 Detail]
Download: Michigan-2011-HB5479-Engrossed.html
HB-5479, As Passed House, April 25, 2012
SUBSTITUTE FOR
HOUSE BILL NO. 5479
A bill to prohibit persons who have certain economic
relationships with Iran and other state sponsors of terror 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
and other state sponsors of terror economic sanctions act".
Sec. 2. As used in this act:
(a) "Person" means any of the following:
(i) An individual, corporation, company, limited liability
House Bill No. 5479 (H-2) as amended April 24, 2012
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).
(b) "Public entity" means this state or an agency, school
district, community college district, intermediate school district,
city, village, township, or county of this state.
(c) "State sponsor of terror" means that term as defined in
section 2 of the divestment from terror act, 2008 PA 234, MCL
129.292.
(d) "State sponsor of terror linked business" means a person
that has [direct] investments in a state sponsor of terror or holds a
contract with a state sponsor of terror or a political subdivision
of a state sponsor of terror. [A state sponsor of terror linked
business does not include a social development company as defined in
section 2 of the divestment from terror act, 2008 PA 234, MCL 129.292.]
Sec. 3. (1) A state sponsor of terror linked business is not
eligible to submit a bid on a request for proposal with a public
entity.
(2) 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 a state sponsor of terror linked business.
(3) This section is not effective against a state sponsor of
terror linked business if the state sponsor of terror associated
with that state sponsor of terror linked business is no longer
sanctioned by the United States government.
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 and entered into a contract with the public entity is
a state sponsor of terror 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 a state sponsor of terror linked business.
(2) Upon the request of a person notified under subsection
(1), the public entity shall provide the person it determined to be
a state sponsor of terror linked business with an opportunity to
demonstrate to the public entity that it is not a state sponsor of
terror linked business. If the public entity then determines that
the person is not a state sponsor of terror 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.
