2010 Arizona Revised Statutes
Title 35 - Public Finances
35-393.06 Prohibition on government contracts

35-393.06. Prohibition on government contracts

(Conditionally Rpld.)

A. Within thirty days after receipt of a report required by section 35-393.03, the central procurement officer of this state shall send a notice to the scrutinized company indicating that this state and its political subdivisions are prohibited from purchasing any product or service from a scrutinized company until the company is no longer on the scrutinized companies with activities in the Iran petroleum energy sector list. This prohibition does not apply to any existing contract but does apply to any new contract or renewal of a contract.

B. This state and political subdivisions of this state shall ensure that each contract entered into by the state or political subdivision of this state for the procurement of goods or services includes a clause that requires the contractor to certify to the contracting officer that the contractor does not have scrutinized business operations in Iran.

C. If this state or political subdivision of this state determines that the contractor has submitted a false certification under subsection B of this section, the state or political subdivision may impose remedies as provided by law. On the determination of a false certification under subsection B of this section, this state or political subdivision of this state may terminate a covered contract.

D. This state or political subdivision of this state shall notify the central procurement officer of this state of any contractor that has submitted a false certification under subsection B of this section.

E. Based on information reported in section 35-393.03, the central procurement officer of this state shall compile and make available, on an annual basis, a list of parties with activities in the Iran petroleum energy sector excluded from Arizona procurement.

F. Based on information reported in section 35-393.03, the central procurement officer of this state may suspend a contractor from eligibility for state or political subdivision contracts upon the notification from the state or political subdivision of a false certification under subsection B of this section. The suspension period shall not exceed three years.

G. This section does not limit the use of other remedies available to this state or a political subdivision of this state or any other official of this state the basis of a false certification under subsection B of this section.

H. The governor may waive the requirements of subsection A or B of this section on a case-by-case basis if the governor determines and certifies in writing to the central procurement officer of this state that it is in the state's best interest to do so.

I. Within one year after the effective date of this section, the central procurement officer of this state shall provide a written report to the governor, the senate and the house of representatives committees that are responsible for retirement issues on the actions taken under this section.

J. This section applies to all affiliated companies and subsidiaries of the company.