Senate Bill 2596

AN ACT TO PROHIBIT STATE AND LOCAL GOVERNMENT CONTRACTS WITH COMPANIES THAT ARE ON THE SCRUTINIZED COMPANIES WITH ACTIVITIES IN THE IRAN PETROLEUM ENERGY SECTOR LIST; TO PROVIDE EXCEPTIONS THERETO; TO PROVIDE CIVIL PENALTIES AGAINST ANY COMPANY THAT SUBMITS A FALSE CERTIFICATION; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) As used in this section, the term:

(a) "Awarding body" means, for purposes of state contracts, an agency or the department, and for purposes of local contracts, the governing body of the local governmental entity.

(b) "Business operations" means engaging in commerce in any form in, including, but not limited to, acquiring, developing, maintaining, owning, selling, possessing, leasing or operating equipment, facilities, personnel, products, services, personal property, real property, military equipment, or any other apparatus of business or commerce.

(c) "Local governmental entity" means a county, municipality, special district or other political subdivision of the state.

(2) A company that, at the time of bidding or submitting a proposal for a new contract or renewal of an existing contract, is on the Scrutinized Companies with Activities in the Iran Petroleum Energy Sector List, created pursuant to Senate Bill No. 2596, 2013 Regular Session, is ineligible for, and may not bid on, submit a proposal for, or enter into or renew a contract with an agency or local governmental entity for goods or services of One Million Dollars ($1,000,000.00) or more.

(3) Any contract with an agency or local governmental entity for goods or services of One Million Dollars ($1,000,000.00) or more entered into or renewed on or after July 1, 2013, through June 30, 2014, must contain a provision that allows for the termination of such contract at the option of the awarding body if the company is found to have submitted a false certification as provided under subsection (5) or been placed on the Scrutinized Companies with Activities in the Iran Petroleum Energy Sector List.

(4) Notwithstanding subsection (2) or (3) of this act, an agency or local governmental entity, on a case-by-case basis, may permit a company on the Scrutinized Companies with Activities in the Iran Petroleum Energy Sector List to be eligible for, bid on, submit a proposal for, or enter into or renew a contract for goods or services of One Million Dollars ($1,000,000.00) or more under the conditions set forth in paragraph (a) of this subsection or the conditions set forth in paragraph (b) of this subsection:

(a) With respect to a company on the Scrutinized Companies with Activities in the Iran Petroleum Energy Sector List, all of the following occur:

(i) The scrutinized business operations were made before July 1, 2013;

(ii) The scrutinized business operations have not been expanded or renewed after July 1, 2013;

(iii) The agency or local governmental entity determines that it is in the best interest of the state or local community to contract with the company;

(iv) The company has adopted, has publicized, and is implementing a formal plan to cease scrutinized business operations and to refrain from engaging in any new scrutinized business operations; and

(b) One (1) of the following occurs:

(i) The local governmental entity makes a public finding that, absent such an exemption, the local governmental entity would be unable to obtain the goods or services for which the contract is offered.

(ii) For a contract with an executive agency, the Governor makes a public finding that, absent such an exemption, the agency would be unable to obtain the goods or services for which the contract is offered.

(iii) For a contract with an office of a state constitutional officer other than the Governor, the state constitutional officer makes a public finding that, absent such an exemption, the office would be unable to obtain the goods or services for which the contract is offered.

(5) At the time a company submits a bid or proposal for a contract or before the company enters into or renews a contract with an agency or governmental entity for goods or services of One Million Dollars ($1,000,000.00) or more, the company must certify that the company is not on the Scrutinized Companies with Activities in the Iran Petroleum Energy Sector List.

(a) If, after the agency or the local governmental entity determines, using credible information available to the public, that the company has submitted a false certification, the agency or local governmental entity shall provide the company with written notice of its determination. The company shall have ninety (90) days following receipt of the notice to respond in writing and to demonstrate that the determination of false certification was made in error. If the company does not make such demonstration within ninety (90) days after receipt of the notice, the agency or the local governmental entity shall bring a civil action against the company. If a civil action is brought and the court determines that the company submitted a false certification, the company shall pay the penalty described in subparagraph (i) and all reasonable attorney fees and costs, including any costs for investigations that led to the finding of false certification.

(i) A civil penalty equal to the greater of Two Million Dollars ($2,000,000.00) or twice the amount of the contract for which the false certification was submitted shall be imposed.

(ii) The company is ineligible to bid on any contract with an agency or local governmental entity for three (3) years after the date the agency or local governmental entity determined that the company submitted a false certification.

(b) A civil action to collect the penalties described in paragraph (a) must commence within three (3) years after the date the false certification is submitted.

(6) Only the Attorney General may cause a civil action to be brought under this section. This section does not create or authorize a private right of action or enforcement of the penalties provided in this section. An unsuccessful bidder, or any other person other than the agency or local governmental entity, may not protest the award of a contract or contract renewal on the basis of a false certification.

(7) This section preempts any ordinance or rule of any agency or local governmental entity involving public contracts for goods or services of One Million Dollars ($1,000,000.00) or more with a company engaged in scrutinized business operations.

(8) This section becomes inoperative on the date that federal law ceases to authorize the states to adopt and enforce the contracting prohibitions of the type provided for in this section.

SECTION 2. This act shall take effect and be in force from and after July 1, 2013.