This legislation is intended to stop Georgia and county governments from conducting business with people of who invest in Iran.  It requires the Department of Administrative Services (DOAS) to compile a list of people that are engaged in investment activities in Iran.  DOAS would be required to post the list on their website and update it every six months.  

SB 406 deems any bid or proposal submitted to a county from a person who is on the DOAS list as "nonresponsbile." It also deems any person contracting or renewing a contract with a county as "nonresponsible."  Even if they are considered "nonresponsible," the "purchasing agency" may determine that the investment activities in Iran were made before July 1, 2015 (and have not been expanded or renewed since that time), as well as determine that it is in the best interest of the county.  If the person has adopted and publicized a formal plan to stop current investments and refrain from new investments in Iran and if the county chairman makes a written finding that the county would be unable to obtain the supplies or services elsewhere, then the county may contract with the person on the list.  

Whenever the county contracts with anyone not on the DOAS list, the person must provide a written certification that they are not engaged in investment activities in Iran.  This certification must be kept in the county's contract file.  If a person submits a certification that the "purchasing agency" believes to be false, then the "purchasing agency" must notify the Attorney General.  The Attorney General has the option to bring a civil action against the person.  If the Attorney General elects not to bring an action, then the county may bring a civil action against the person.  The court may impose a civil penalty of $250,000, as well as al court costs of the action against the person.  The "purchasing agency" may also terminate the contract.  

The legislation also provides that a person's investment contract with a public retirement system is not deemed to be an investment in the activities in Iran.