AB 570

Under current law, the Department of Administration (DOA), other agencies

to which DOA has delegated purchasing authority, the legislature, the judicial

branch, and authorities (collectively, "purchasing agents") may purchase all

necessary materials and contractual services. Current law also generally authorizes

DOA to contract for construction work when the project cost is estimated to exceed

$50,000. With some exceptions, the purchases or contracts must be awarded to the

lowest bidder.

This bill creates a new exception to the lowest-bidder award. Under the bill,

a purchasing agent may not purchase from, or contract for materials or services with,

an entity that, among other actions, provides goods or services to the energy, finance,

or construction sectors in Iran; purchases oil or natural gas from Iran; provides goods

or services to a person on the Specially Designated Nationals List for Iran or to a

person placed on the Specially Designated Nationals List for a violation of Iran

sanctions imposed by the U.S. Office of Foreign Assets Control; or transfers to Iran,

or provides services to Iran regarding, certain items or technology such as firearms,

ammunition, tear gas, surveillance technology, or items that could be used by the

Iranian government to commit human rights abuses against Iranian citizens.

In addition, the bill requires an entity submitting a bid to a purchasing agent

to certify that the entity is not engaging in any actions that would prohibit, under

the bill, the purchasing agent from entering into a purchasing contract with the

entity. Any entity that provides a false or misleading certification is subject to a

forfeiture of the lesser of $1,000,000 or twice the amount of the contract for which the

certification was made.

Finally, the bill requires DOA to maintain a list of entities that DOA determines

have engaged in an activity that would prohibit, under the bill, a purchasing agent

from entering into a purchasing contract with the entity, including submitting a

certification that is required under the bill that is false or misleading. DOA must use

credible publicly available information when maintaining the list and must provide

a 30-day notice to an entity before it will appear on the list so as to give the entity

an opportunity to appeal the listing.