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* § 6-115 a. With respect to contracts described in subdivisions b and
c of this section, and in accordance with such provisions, no city
agency shall contract for the supply of goods, services or construction
with any person who does not agree to stipulate to the following as
material conditions of the contract if there is another person who will
contract to supply goods, services or construction of comparable quality
at a comparable price:
(1) That the contractor and its affiliates shall not during the term
of such contract sell or agree to sell goods or services to Burma, the
Government of Burma, or to any entity owned or controlled by the
Government of Burma; and
(2) In the case of a contract to supply goods, that none of the goods
to be supplied to the city originated in Burma.
(3) The contractor and its affiliates do not do business in Burma or
the contractor and its affiliates are actively engaged in the withdrawal
of their operations from Burma and will have completed such withdrawal
in six months, provided, however, that any such company that has
withdrawn or is so engaged in withdrawing its operations from Burma that
maintains a presence in Burma after such six month period solely for the
purpose of liquidating its business shall not be ineligible for that
reason to make the certification provided for in this paragraph.
(4)(a) It shall not make new investments in Burma.
(b) If at any time during the course of the contract the contractor
acquires an entity which is doing business in Burma, the contractor
shall initiate withdrawal of its acquisition's operations from Burma.
(c) It shall not enter into any new agreement with a Burmese entity
allowing the use of its trademark, copyright or patent by such entity.
(5) In the case of a contract to supply motor vehicles, heavy
equipment, electronic data processing equipment and software, copying
machines or petroleum products, the contractor will, in addition to
providing the certification described in this section with respect to
itself and its affiliates, certify or provide a certification to the
contracting agency from the manufacturer or refiner of the product to be
supplied to the city that such manufacturer or refiner of the product to
be supplied to the city that such manufacturer or refiner and its
affiliates are in compliance with the terms set forth in this
subdivision and subdivision d of this section. The commissioner of the
department of citywide administrative services shall consider whether to
designate other goods supplied to the city to be subject to the
provisions of this paragraph, and by rule so designate any such goods as
he or she determine appropriate based upon considerations including
information that one or more manufacturers of such goods or affiliates
of such manufacturers have not withdrawn operations from Burma, the
effects on the city's procurement process, including the opportunities
of small, minority and women owned business enterprises to compete for
such contracts, and the recommendations of other agency heads.
(6) For the purposes of this subdivision, an entity shall be
considered to have withdrawn its operations from Burma if:
(a) it does not maintain any office, plant or employee in Burma other
than for the following purposes: (i) the activities of religious,
educational or charitable organizations; (ii) activities intended to
promote the exchange of information, including the publication or sale
of newspapers, magazines, books, films, television programming,
photographs, microfilm, microfiche, and similar materials; (iii) the
gathering or dissemination of information by news media organizations;
and (iv) the providing of telecommunications and mail services not
involving the sale or leasing of equipment;
(b) it has no investments in Burma; and
(c) it does not provide goods or services to any Burmese entity
pursuant to any non-equity agreement.
(7) The provisions of paragraphs four and six of this subdivision
concerning investments, agreements concerning trademarks, copyrights and
patents, and non-equity agreements shall not apply to the ownership or
agreements with entities engaged in activities described in clauses, i,
ii, iii and iv of subparagraph a of paragraph six.
(8) Notwithstanding the provisions of this section a city agency may
purchase medical supplies intended to preserve or prolong life or to
cure, prevent, or ameliorate diseases, including hospital, nutritional,
diagnostic, pharmaceutical and non-prescription products specifically
manufactured to satisfy identified health care needs, or for which there
is no medical substitute. The determination of whether no medical
substitute exists shall be made by the city agency requiring the supply,
pursuant to general standards of good medical and professional practice.
The city agency shall give notice to the city chief procurement officer
in writing, certifying compliance with this exemption, said notice and
certification being sufficient to allow the purchase of medical supplies
under this exemption.
To the extent that a person doing business in Burma is providing only
medical supplies, as described hereinabove, to persons in Burma, then
the supply of goods or equipment to the city by said person shall also
be exempt from the requirements of this section. This exemption from the
requirements of this section shall not apply in any case in which the
nature of any person's business dealings in Burma include both medical
and non-medical supplies.
(9) For the purposes of this subdivision:
(a) "Affiliates" of a contractor means the parent company of the
contractor, and any subsidiaries of the parent company, and any
subsidiaries of the contractor.
(b) "Parent company" shall mean an entity that directly controls the
contractor.
(c) "Subsidiary" shall mean an entity that is controlled directly or
indirectly through one or more intermediaries, by a contractor or the
contractor's parent company.
(d) "Control" shall mean holding five percent or more of the
outstanding voting securities of a corporation, or having an interest of
five percent or more in any other entity.
(e) "Entity" shall mean a sole proprietorship, partnership,
association, joint venture, company, corporation or any other form of
doing business.
(f) "Burmese entity" shall mean an entity organized in Burma, or a
branch or office in Burma of an entity that is domiciled or organized
outside Burma.
(g) "Investment" shall mean the beneficial ownership or control or a
controlling interest in a Burmese entity, but shall not include the
purchase of securities of a Burmese entity for a customer's account.
(h) "Non-equity agreement" shall mean a license, franchise,
distribution or other written agreement pursuant to which an entity
provides management, maintenance, or training services directly to a
Burmese entity, or supplies goods directly to a Burmese entity for
distribution by such Burmese entity, or for use as component parts in
the manufacture of other goods by such Burmese entity. In addition, a
non-equity agreement shall mean an original equipment manufacturer
agreement, as defined pursuant to rules promulgated by the commissioner
of the department of citywide administrative services, for equipment
sold by a manufacturer of computers, copiers, or telecommunication
equipment, which provides for or authorizes the sale of such equipment
alone or part of a finished product, to a Burmese entity. Such
commissioner shall consider whether to designate other equipment to be
subject to this provision regarding original equipment manufacturer
agreements, and by rule to so designate any such equipment as he or she
determines appropriate based upon considerations including the effects
on the city's procurement process, including the opportunities of small,
minority and women owned business enterprises to compete for such city
contracts.
b. In the case of contracts subject to competitive sealed bidding
pursuant to section three hundred thirteen of the charter, whenever the
lowest responsible bidder has not agreed to stipulate to the conditions
set forth in subdivision a of this section and another bidder who has
agreed to stipulate to such conditions has submitted a bid within five
percent of the lowest responsible bid for a contract to supply goods,
services or construction of comparable quality, the contracting agency
shall refer such bids to the mayor or such other official as may
exercise such power pursuant to section three hundred ten of the
charter, who, in accordance with subdivision b of section three hundred
thirteen of the charter may determine that it is in the best interest of
the city that the contract shall be awarded to other than the lowest
responsible bidder.
c. In the case of contracts for goods, services or construction
involving an expenditure of an amount greater than the amounts
established pursuant to subdivisions b and c of section three hundred
fourteen of the charter, the contracting agency shall not award to a
proposed contractor who has not agreed to stipulate to the conditions
set forth in subdivision a of this section unless the head of the agency
seeking to use the goods, services or construction determines that the
goods, services or construction supplied by such person are necessary
for the agency to perform its functions and there is no other
responsible contractor who will supply goods, services or construction
of comparable quality at a comparable price. Such determination shall be
made in writing and shall be forwarded to the procurement policy board
and the agency designated by the mayor pursuant to subdivision j of this
section, and published in the City Record.
d. No city agency shall enter into a contract for an amount in excess
of the amounts established pursuant to subdivisions b and c of section
three hundred fourteen of the charter with any proposed contractor who
does not agree to stipulate as a material condition of the contract that
such entity and its affiliates have not within the twelve months prior
to the award of such contract violated, and shall not during the period
of such contract violate the provisions of section 138 of the U.S.
customs and trade act of 1990 or any other sanctions imposed by the
United States government with regard to Burma.
e. Upon receiving information that a contractor, manufacturer or
refiner who has agreed to the conditions set forth in subdivision a of
this section is in violation thereof, the contracting agency shall
review such information and offer the contractor and such other entity
an opportunity to respond. If the contracting agency finds that a
violation of such conditions has occurred, or if a final determination
has been made by the commerce department or any other agency of the
United States or a finding has been made by a court that any such entity
has violated any provision of section 138 of the U.S. customs and trade
act of 1990 or any other sanctions imposed by the United States
government with regard to Burma, the contracting agency shall take such
actions as may be appropriate and provided by law, rule or contract,
including but not limited to imposing sanctions, seeking compliance,
recovering damages and declaring the contractor in default. The mayor
shall designate an agency to maintain records of actions taken in such
cases.
f. As used in this section the term "contract" shall not include
contracts with governmental and non-profit organizations, contracts
awarded pursuant to the emergency procurement procedure set forth in
section three hundred fifteen of the charter, or contracts, resolutions,
indentures, declarations of trust, or other instruments authorizing or
relating to the authorization, issuance, award, sale or purchase of
bonds, certificates of indebtedness, notes or other fiscal obligations
of the city, provided that agencies, shall consider the policies of this
law when selecting a consultant to provide financial or legal advice,
and when selecting managing underwriters in connection with such
activities.
g. The provisions of this section shall not apply to contracts for
which the city receives funds administered by the United States
department of transportation, except to the extent congress has directed
that the department of transportation, not to withhold funds from states
and localities that implement Burmese embargo policies, or to the extent
that such funds are not otherwise withheld by the department of
transportation.
h. The department of the citywide administrative services and any
other agency or agencies designated by the mayor shall conduct a study
to develop recommendations concerning the application of the policies
set forth in this section to procurement of goods, services or
construction for amounts less than or equal to the amounts established
pursuant to subdivisions b and c of section three hundred fourteen of
this charter, and shall, on or before January first, nineteen hundred
ninety-seven, submit a report to the mayor and the council containing
such recommendations.
i. Nothing in this section shall be construed to limit the authority
of a contracting agency or any official authorized by the charter to
approve the selection of a contractor from taking into account, in
making a determination to select or approve the selection of a
contractor, in a manner consistent with applicable law and rules, any
information concerning any direct or indirect relationship an entity may
have related to business activities in Burma.
j. (1) The mayor shall designate an agency or agencies to collect
information concerning entities doing business in Burma and to maintain
records of contractors which have or have not agreed to the conditions
set forth in subdivision a of this section. In October of each year,
beginning in nineteen hundred ninety-seven, such agency or agencies
shall submit a report to the mayor and the council setting forth
information concerning contractors that have and have not agreed to such
terms during the previous fiscal year, and the circumstances under which
any contract subject to this section was awarded to a contractor who did
not agree to such terms. The agency shall also report at such time on
the efforts of public and quasi-public entities operating in the city to
implement the Burmese embargo policies.
(2) The mayor shall designate an agency to collect information
concerning whether entities withdrawing from Burma have given or agreed
to give advance notification to their Burmese employees and
representative trade unions (or other representative employee
organizations if there are no appropriate unions) of the planned
termination of investment not less than six months prior to such
termination, and have engaged or agreed to engage in good faith
negotiations with such representative unions or organizations regarding
the terms of such termination, including but not limited to pension
benefits; relocation of employees; continuation of existing union
recognition agreements; severance pay; and acquisition of the terminated
business or its assets by representative trade unions, union-sponsored
workers trusts, other representative worker organizations or employees.
Such agency shall inform such entities of, and offer them an opportunity
to respond to, any such information it collects. In October of each
year, beginning in nineteen hundred ninety-seven, such agency shall
submit a report to the mayor and the council on the information
collected pursuant to this subdivision.
* NB Enacted without section heading.