SB 1203 — An Act preventing the Commonwealth from dealing with persons associated with the Government of Russia or the Government of Belarus; and imposing duties on the Treasury Department and the Attorney General.

1611, 17591759, 1810 PRINTER'S NO.

18101931 THE GENERAL ASSEMBLY OF PENNSYLVANIA SENATE BILL Session of No.

1203 2022 INTRODUCED BY ARGALL, SCHWANK, GEBHARD, MENSCH, BARTOLOTTA, KANE, YUDICHAK, COSTA, STREET, ROBINSON, PITTMAN AND STEFANO, APRIL 22, 2022 AS AMENDED ON SECONDTHIRD CONSIDERATION, JUNESEPTEMBER 22,20, 2022 AN ACT Preventing the Commonwealth from dealing with persons associated with the Government of Russia or the Government of Belarus;

"Person." An individual, corporation, partnership, limited liability company, business trust, association, estate, trust, foundation, business entity or government entity.entity who is owned or controlled by, or acting for or on behalf of, Russia or Belarus as defined by the Office of Foreign Assets Control of the United States Department of Treasury as of the effective date of this definition.

WHO IS OWNED <-- OR CONTROLLED BY, OR ACTING FOR OR ON BEHALF OF, RUSSIA OR BELARUS AS DEFINED BY THE OFFICE OF FOREIGN ASSETS CONTROL OF THE UNITED STATES DEPARTMENT OF TREASURY AS OF THE EFFECTIVE DATE OF THIS DEFINITION.

(a) Development of list.--Within 60 days of the effective date of this section, the Treasury Department shall,shall usingpublish <-- credible information available to the public, develop a list of personspersons. in this Commonwealth that, as determined by the Treasury Department, meet any of the following criteria:

(1)(b) HaveUpdate aof directlist.--The equitylist shareunder withsubsection the(a) Governmentshall ofbe Russiaupdated orannually. the Government of Belarus.

(2)Section Have4. business operations that involve contracts with or the provision of goods or services to the Government of Russia or the Government of Belarus.

(3) Are headquartered or have a principal place of business in Russia or Belarus.

(4) Support, assist or facilitate the Government of Russia or the Government of Belarus in the shared campaign to invade the sovereignty of Ukraine, either through in-kind support or for-profit dealings.

PUBLISH A LIST OF PERSONS.

<-- 20220SB1203PN1810 - 2 - (b) Update of list.--The list under subsection (a) shall be updated every 90 days ANNUALLY.

<-- Section 4.

(1) Bid on, submit a proposal for, enter into, BEbe Aa <--party PARTYto TO or renew a contract with a Commonwealth agency for the provision of goods or services.

(2) Submit a proposal for, BEbe ASSOCIATEDassociated WITHwith or renew a <-- grant issued by the Commonwealth.

(3) Submit a proposal for, RECEIVEreceive or renew a tax credit <-- offered by the Commonwealth.

20220SB1203PN1931 - 2 - (a) Notice.--The Treasury Department shall providepublish toa eachlist <--of personpersons on theits listpublicly underaccessible sectionInternet 3website noticeunder of:section 3.

(1)(b) TheChallenge.--A person may challenge the person's <-- inclusion on the list.list under section 3 to the Attorney General.

(2)If Thethe restrictionsperson underdemonstrates sectionto 4.the satisfaction of the Attorney General that the person should not be included on the list the person shall be stricken from the list.

(3)(B) TheCHALLENGE.--A opportunityPERSON ofMAY theCHALLENGE personTHE toPERSON'S challenge<-- theINCLUSION person'sON inclusionTHE onLIST theUNDER list,SECTION through3 commentingBY inPRESENTING writingPROOF thatOF theREMOVAL personFROM doesTHE notSPECIALLY meetDESIGNATED anyNATIONALS ofAND theBLOCKED criteriaPERSONS specifiedLIST inMAINTAINED sectionBY 3(a).THE UNITED STATES DEPARTMENT OF TREASURY, OFFICE OF FOREIGN ASSETS CONTROL, TO THE TREASURY DEPARTMENT TO BE STRICKEN FROM THE LIST.

(b) Successful challenge.--If a person challenges the person's inclusion on the list under section 3 and demonstrates to the satisfaction of the Treasury Department that the person does not meet any of the criteria specified in section 3(a), the person shall not be included on the list.

(c) Unsuccessful challenge.--If a person challenges the person's inclusion on the list under section 3 but does not demonstrate to the satisfaction of the Treasury Department that the person does not meet any of the criteria specified in 20220SB1203PN1810 - 3 - section 3(a), the Treasury Department shall forward the matter to the Attorney General for further review.

(d) Duty of Attorney General.-- (1) If, after receiving the matter under subsection (c), the Attorney General finds that the evidence presented by the person is with merit, the Attorney General shall make a recommendation to the Treasury Department that the person not be included on the list under section 3.

(2) If, after receiving the matter under subsection (c), the Attorney General finds that the evidence presented by the person is without merit, the Attorney General shall determine whether to pursue appropriate criminal or civil charges against the person.

(A) NOTICE.--THE TREASURY DEPARTMENT SHALL PUBLISH A LIST OF <-- PERSONS ON ITS PUBLICLY ACCESSIBLE INTERNET WEBSITE UNDER SECTION 3.

(B) CHALLENGE.--A PERSON MAY CHALLENGE THE PERSON'S INCLUSION ON THE LIST UNDER SECTION 3 TO THE ATTORNEY GENERAL.

IF THE PERSON DEMONSTRATES TO THE SATISFACTION OF THE ATTORNEY GENERAL THAT THE PERSON SHOULD NOT BE INCLUDED ON THE LIST THE PERSON SHALL BE STRICKEN FROM THE LIST.

The Treasury Department shall develop a list of critical materials and critical minerals thatas are exempted from this act <-- that include those minerals identified as critical by the United States Department of the Interior asunder part of Executive Order 13817.

ThisAny listperson shallwho beprovides, reviewedobtains annuallyor bysupplies a mineral identified as critical minerals or materials to the Federal Government or United States domiciled business shall, upon notification to the Treasury Department.Department, be removed from the list and exempted from any restrictions imposed by this act.

ASThis IDENTIFIEDlist ASshall CRITICALbe BYreviewed THEannually UNITEDand STATESupdated <--by DEPARTMENTthe OFTreasury THEDepartment. INTERIOR UNDER EXECUTIVE ORDER 13817.

ANYSection PERSON7. WHO PROVIDES, OBTAINS OR SUPPLIES A MINERAL IDENTIFIED AS 20220SB1203PN1810 - 4 - CRITICAL MINERALS OR MATERIALS TO THE FEDERAL GOVERNMENT OR UNITED STATES DOMICILED BUSINESS SHALL, UPON NOTIFICATION TO THE TREASURY DEPARTMENT, BE REMOVED FROM THE LIST AND EXEMPTED FROM ANY RESTRICTIONS IMPOSED BY THIS ACT.

THISConstruction. LIST SHALL BE REVIEWED ANNUALLY AND UPDATED BY THE TREASURY DEPARTMENT.

SECTIONNothing 7.in this act shall be construed to prohibit transactions authorized by the Federal Government or under Federal law.

CONSTRUCTION.Section 8.

NOTHING IN THIS ACT SHALL BE CONSTRUED TO PROHIBIT TRANSACTIONS AUTHORIZED BY THE FEDERAL GOVERNMENT OR UNDER FEDERAL LAW.

Section 7 8.

<--20220SB1203PN1931 - 3 - This act shall take effect in 30 60 days.

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