16 | | - | Enrolled, An Act, |
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17 | | - | Relating to public contracts; to prohibit governmental |
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18 | | - | entities from entering into certain contracts with companies |
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19 | | - | that boycott businesses because the business engages in |
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20 | | - | certain sectors or does not meet certain environmental or |
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21 | | - | corporate governance standards or does not facilitate certain |
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22 | | - | activities; to provide that no company in the state shall be |
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23 | | - | required by a governmental entity, nor penalized by a |
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24 | | - | governmental entity for declining to engage in economic |
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25 | | - | boycotts or other actions that further social, political, or |
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26 | | - | ideological interests; to require the Attorney General to take |
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27 | | - | actions to prevent federal laws or actions from penalizing, |
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28 | | - | inflicting harm on, limiting commercial relations with, or |
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29 | | - | changing or limiting the activities of companies or residents |
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30 | | - | of the state based on the furtherance of economic boycott |
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31 | | - | criteria; and to authorize the Attorney General to investigate |
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32 | | - | and enforce this act; and to provide definitions. |
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33 | | - | BE IT ENACTED BY THE LEGISLATURE OF ALABAMA: |
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34 | | - | Section 1. As used in this act, the following terms |
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35 | | - | have the following meanings: |
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36 | | - | (1) COMPANY. A for-profit entity, organization, |
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37 | | - | association, corporation, partnership, joint venture, limited |
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38 | | - | partnership, limited liability partnership, or limited |
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39 | | - | liability company. The term does not include sole |
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40 | | - | proprietorships. |
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41 | | - | (2) ECONOMIC BOYCOTT. Without an ordinary business |
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| 17 | + | SYNOPSIS: |
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| 18 | + | This bill would prohibit a governmental entity |
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| 19 | + | from entering into a public contract for goods or |
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| 20 | + | services with certain companies or businesses that |
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| 21 | + | engage in the economic boycott of businesses in certain |
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| 22 | + | sectors and industries; that fail to meet or commit to |
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| 23 | + | meet certain environmental standards; that fail to meet |
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| 24 | + | or commit to meet certain corporate governance |
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| 25 | + | criteria; or that fail to facilitate certain |
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| 26 | + | activities. |
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| 27 | + | This bill would prohibit any company in the |
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| 28 | + | state from being required to engage in economic |
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| 29 | + | boycotts or other actions that further social, |
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| 30 | + | political, or ideological interests, including economic |
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| 31 | + | boycott criteria. |
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| 32 | + | This bill would prohibit any company in the |
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| 33 | + | state from being penalized for declining to engage in |
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| 34 | + | economic boycotts or other actions that further social, |
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| 35 | + | political, or ideological interests, including economic |
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| 36 | + | boycott criteria. |
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| 37 | + | This bill would require the Attorney General to |
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| 38 | + | seek to prohibit the adoption of federal laws or |
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| 39 | + | actions that may penalize, inflict harm on, limit |
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| 40 | + | commercial relations with, or change or limit the |
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| 41 | + | activities of companies or residents of the state based |
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71 | | - | purpose, refusing to deal with, terminating business |
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72 | | - | activities with, or otherwise taking any commercial action |
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73 | | - | that is intended to penalize or inflict economic harm on a |
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74 | | - | company solely because the company, without violating |
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75 | | - | controlling law or regulation, does any of the following: |
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76 | | - | a. Engages in the exploration, production, utilization, |
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77 | | - | transportation, sale, or manufacturing of fossil fuel-based |
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78 | | - | energy, timber, mining, or agriculture. |
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79 | | - | b. Engages in, facilitates, or supports the |
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80 | | - | manufacture, import, distribution, marketing or advertising, |
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81 | | - | sale, or lawful use of firearms, ammunition, or component |
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82 | | - | parts and accessories of firearms or ammunition. |
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83 | | - | c. Does not meet, is not expected to meet, or does not |
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84 | | - | commit to meet environmental standards or disclosure criteria, |
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85 | | - | in particular to eliminate, reduce, offset, or disclose |
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86 | | - | greenhouse gas emissions. |
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87 | | - | d. Does not meet, is not expected to meet, or does not |
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88 | | - | commit to meet corporate employment or board composition, |
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89 | | - | compensation, or disclosure criteria. |
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90 | | - | e. Does not facilitate, is not expected to facilitate, |
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91 | | - | or does not commit to facilitate access to abortion or sex or |
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92 | | - | gender change surgery, medications, treatment, or therapies. |
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93 | | - | (3) GOVERNMENTAL ENTITY. A state agency, department, |
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94 | | - | regulatory body, board, bureau, or commission, or any county, |
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95 | | - | municipality, incorporated or unincorporated local government, |
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96 | | - | or other political subdivision of the state. |
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97 | | - | (4) ORDINARY BUSINESS PURPOSE. Includes a purpose that |
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98 | | - | is related to business operations and excludes a purpose that |
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| 71 | + | on the furtherance of economic boycott criteria. |
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| 72 | + | This bill would also authorize the Attorney |
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| 73 | + | General to investigate violations of and enforce this |
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| 74 | + | act. |
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| 75 | + | A BILL |
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| 76 | + | TO BE ENTITLED |
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| 77 | + | AN ACT |
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| 78 | + | Relating to public contracts; to prohibit governmental |
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| 79 | + | entities from entering into certain contracts with companies |
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| 80 | + | that boycott businesses because the business engages in |
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| 81 | + | certain sectors or does not meet certain environmental or |
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| 82 | + | corporate governance standards or does not facilitate certain |
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| 83 | + | activities; to provide that no company in the state shall be |
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| 84 | + | required, nor penalized for declining to engage in economic |
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| 85 | + | boycotts or other actions that further social, political, or |
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| 86 | + | ideological interests; to require the Attorney General to take |
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| 87 | + | actions to prevent federal laws or actions from penalizing, |
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| 88 | + | inflicting harm on, limiting commercial relations with, or |
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| 89 | + | changing or limiting the activities of companies or residents |
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| 90 | + | of the state based on the furtherance of economic boycott |
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| 91 | + | criteria; and to authorize the Attorney General to investigate |
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| 92 | + | and enforce this act; and to provide definitions. |
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| 93 | + | BE IT ENACTED BY THE LEGISLATURE OF ALABAMA: |
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| 94 | + | Section 1. As used in this act, the following terms |
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| 95 | + | have the following meanings: |
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128 | | - | is solely related to furthering social, political, or |
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129 | | - | ideological interests. |
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130 | | - | Section 2. (a) This section applies only to a contract |
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131 | | - | that meets both of the following: |
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132 | | - | (1) Is between a governmental entity and a company with |
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133 | | - | 10 or more full-time employees. |
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134 | | - | (2) Will pay or may pay a company at least fifteen |
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135 | | - | thousand dollars ($15,000) over the term of the contract |
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136 | | - | wholly or partly from public funds of the governmental entity; |
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137 | | - | provided, however, this subdivision shall apply separately to |
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138 | | - | all companies in a multiple-party contract. |
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139 | | - | (b) Except as provided by subsection (c), a |
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140 | | - | governmental entity may not enter into a contract with a |
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141 | | - | company for goods or services unless the contract contains a |
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142 | | - | written verification from the company that the company, |
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143 | | - | without violating controlling law or regulation, does not and |
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144 | | - | will not, during the term of the contract, engage in economic |
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145 | | - | boycotts. |
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146 | | - | (c) Subsection (b) does not apply to a contract related |
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147 | | - | to the issuance, incurrence, or management of debt |
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148 | | - | obligations, to the deposit, custody, management, borrowing, |
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149 | | - | or investment of funds, or to the procurement of insurance or |
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150 | | - | other financial products, or financial advisory services, or a |
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151 | | - | contract that would prevent the governmental entity from |
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152 | | - | obtaining the supplies or services to be provided in an |
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153 | | - | economically practicable manner. |
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154 | | - | (d) If a governmental entity is unable to comply with |
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155 | | - | this section without significantly increasing costs or |
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| 125 | + | (1) COMPANY. A for-profit entity, organization, |
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| 126 | + | association, corporation, partnership, joint venture, limited |
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| 127 | + | partnership, limited liability partnership, or limited |
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| 128 | + | liability company, including a wholly owned subsidiary, |
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| 129 | + | majority-owned subsidiary, parent company, or affiliate of |
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| 130 | + | those entities or business associations. The term does not |
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| 131 | + | include sole proprietorships. |
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| 132 | + | (2) ECONOMIC BOYCOTT. Without an ordinary business |
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| 133 | + | purpose, refusing to deal with, terminating business |
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| 134 | + | activities with, or otherwise taking any commercial action |
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| 135 | + | that is intended to penalize, inflict economic harm on, limit |
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| 136 | + | commercial relations with, or change or limit the activities |
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| 137 | + | of a company because the company, without violating |
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| 138 | + | controlling law, does any of the following: |
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| 139 | + | a. Engages in the exploration, production, utilization, |
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| 140 | + | transportation, sale, or manufacturing of fossil fuel-based |
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| 141 | + | energy, timber, mining, or agriculture. |
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| 142 | + | b. Engages in, facilitates, or supports the |
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| 143 | + | manufacture, import, distribution, marketing or advertising, |
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| 144 | + | sale, or lawful use of firearms, ammunition, or component |
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| 145 | + | parts and accessories of firearms or ammunition. |
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| 146 | + | c. Does not meet, is not expected to meet, or does not |
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| 147 | + | commit to meet environmental standards or disclosure criteria, |
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| 148 | + | in particular to eliminate, reduce, offset, or disclose |
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| 149 | + | greenhouse gas emissions. |
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| 150 | + | d. Does not meet, is not expected to meet, or does not |
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| 151 | + | commit to meet corporate employment or board composition, |
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| 152 | + | compensation, or disclosure criteria. |
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185 | | - | limiting the quality of options or services available, or |
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186 | | - | both, the governmental entity may waive the requirements upon |
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187 | | - | a finding, posted on the governmental entity's publicly |
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188 | | - | available website that: |
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189 | | - | (1) The governmental entity has made reasonable and |
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190 | | - | good faith efforts to obtain services meeting the requirements |
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191 | | - | of this section and has included the requirements in the |
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192 | | - | governmental entity's minimum selection criteria. |
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193 | | - | (2) Based on objective information available to the |
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194 | | - | governmental entity, the cost appears significantly higher |
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195 | | - | than the services available to similarly oriented governmental |
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196 | | - | entities not subject to similar requirements, or the quality |
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197 | | - | of services or options appears significantly lower than the |
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198 | | - | quality of services available to similarly oriented |
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199 | | - | governmental entities not subject to similar requirements, or |
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200 | | - | both. |
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201 | | - | (3) The governmental entity determines that a waiver is |
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202 | | - | clearly in the best interest of the public. |
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203 | | - | Section 3. (a) No party may take action to penalize or |
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204 | | - | threaten to penalize any governmental entity, company, or |
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205 | | - | business for compliance with Section 2. |
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206 | | - | (b) Any party violating a commitment made under |
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207 | | - | subsection (b) of Section 2 or otherwise violating subsection |
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208 | | - | (a) of this section shall have caused harm to the governmental |
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209 | | - | entity, including by interfering with the governmental |
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210 | | - | entity's sovereign interest in administering its programs and |
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211 | | - | with the governmental entity's commercial relationships. |
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212 | | - | Section 4. (a) No company in this state shall be |
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| 182 | + | e. Does not facilitate, is not expected to facilitate, |
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| 183 | + | or does not commit to facilitate access to abortion or sex or |
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| 184 | + | gender change surgery, medications, treatment, or therapies. |
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| 185 | + | f. Does business with a company described by paragraphs |
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| 186 | + | a. through e. |
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| 187 | + | (3) GOVERNMENTAL ENTITY. A state agency, department, |
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| 188 | + | regulatory body, board, bureau, or commission, or any county, |
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| 189 | + | municipality, incorporated or unincorporated local government, |
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| 190 | + | or other political subdivision of the state. |
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| 191 | + | (4) ORDINARY BUSINESS PURPOSE. Excludes any purpose to |
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| 192 | + | further social, political, or ideological interest, including, |
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| 193 | + | but not limited to, economic boycott criteria or other |
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| 194 | + | similarly oriented rating. A company may reasonably be |
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| 195 | + | determined to have taken an action, or considered a factor, |
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| 196 | + | with a purpose to further social, political, or ideological |
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| 197 | + | interests based upon evidence indicating such a purpose, |
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| 198 | + | including, but not limited to: (i) branding, advertising, |
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| 199 | + | statements, explanations, reports, letters to clients, |
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| 200 | + | communications with portfolio companies, statements of |
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| 201 | + | principles, or commitments, or (ii) participation in, |
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| 202 | + | affiliation with, or status as a signatory to any coalition, |
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| 203 | + | initiative, joint statement of principles, or agreement. |
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| 204 | + | Section 2. (a) This section applies only to a contract |
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| 205 | + | that meets both of the following: |
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| 206 | + | (1) Is between a governmental entity and a company with |
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| 207 | + | 10 or more full-time employees. |
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| 208 | + | (2) Will pay or may pay a company at least fifteen |
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| 209 | + | thousand dollars ($15,000) over the term of the contract |
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242 | | - | required by a governmental entity to engage in economic |
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243 | | - | boycotts, to establish or implement policies, procedures, |
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244 | | - | guidelines, rules, reports, products, services, notices, |
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245 | | - | disclosures, or rates or pricing; to provide or submit answers |
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246 | | - | to surveys or other information requests or disclosures; to |
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247 | | - | invest in or divest of certain securities, stocks, bonds, |
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248 | | - | bills, partnerships, or other investment arrangements; or to |
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249 | | - | initiate other corporate or business practices that further |
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250 | | - | social, political, or ideological interests including, but not |
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251 | | - | limited to, economic boycott criteria or other similarly |
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252 | | - | oriented rating. |
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253 | | - | (b) No company in this state shall be penalized, have |
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254 | | - | economic harm inflicted on it, have commercial relations |
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255 | | - | limited, or have the activities of the company changed or |
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256 | | - | limited by a governmental entity because the company will not |
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257 | | - | engage in economic boycotts; will not establish or implement |
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258 | | - | policies, procedures, guidelines, rules, reports, products, |
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259 | | - | services, notices, disclosures, or rates or pricing; will not |
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260 | | - | provide or submit answers to surveys or other information |
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261 | | - | requests or disclosures; will not invest in or divest of |
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262 | | - | certain securities, stocks, bonds, bills, partnerships, or |
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263 | | - | other investment arrangements; or will not initiate other |
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264 | | - | corporate or business practices that further social, |
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265 | | - | political, or ideological interests including, but not limited |
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266 | | - | to, economic boycott criteria or other similarly oriented |
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267 | | - | rating. |
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268 | | - | Section 5. The Attorney General shall seek to prohibit |
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269 | | - | the adoption of federal laws, rules, regulations, bulletins, |
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| 239 | + | wholly or partly from public funds of the governmental entity; |
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| 240 | + | provided, however, this subdivision shall apply separately to |
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| 241 | + | all companies in a multiple-party contract. |
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| 242 | + | (b) Except as provided by subsection (c), a |
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| 243 | + | governmental entity may not enter into a contract with a |
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| 244 | + | company for goods or services unless the contract contains a |
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| 245 | + | written verification from the company that the company does |
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| 246 | + | not and will not, during the term of the contract, engage in |
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| 247 | + | economic boycotts. |
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| 248 | + | (c) Subsection (b) does not apply to a governmental |
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| 249 | + | entity that determines the requirements of subsection (b) are |
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| 250 | + | inconsistent with the governmental entity's constitutional or |
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| 251 | + | statutory duties related to the issuance, incurrence, or |
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| 252 | + | management of debt obligations or the deposit, custody, |
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| 253 | + | management, borrowing, or investment of funds, or would |
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| 254 | + | prevent the governmental entity from obtaining the supplies or |
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| 255 | + | services to be provided in an economically practicable manner. |
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| 256 | + | (d) If a governmental entity is unable to comply with |
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| 257 | + | this section without significantly increasing costs or |
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| 258 | + | limiting the quality of options or services available, or |
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| 259 | + | both, the governmental entity may waive the requirements upon |
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| 260 | + | a finding, posted on the governmental entity's publicly |
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| 261 | + | available website that: |
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| 262 | + | (1) The governmental entity has made reasonable and |
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| 263 | + | good faith efforts to obtain services meeting the requirements |
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| 264 | + | of this section and has included the requirements in the |
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| 265 | + | governmental entity's minimum selection criteria. |
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| 266 | + | (2) Based on objective information available to the |
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299 | | - | executive orders, or other federal actions that may penalize, |
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300 | | - | inflict economic harm on, limit commercial relations with, or |
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301 | | - | change or limit the activities of a company in the state or a |
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302 | | - | resident of the state based on the furtherance of economic |
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303 | | - | boycott criteria or other similarly oriented rating. |
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304 | | - | Section 6. If any provision of this act or its |
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305 | | - | application to any person or circumstances is held invalid, |
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306 | | - | then the invalidity does not affect other provisions or |
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307 | | - | applications of this act, which can be given effect without |
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308 | | - | the invalid provision or application, and to this end the |
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309 | | - | provisions of this act are severable. |
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310 | | - | Section 7. (a) This act may be enforced only by the |
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311 | | - | Attorney General. If the Attorney General declines to enforce |
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312 | | - | a violation of Section 4, a company can bring a civil action |
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313 | | - | against the governmental entity to seek injunctive relief |
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314 | | - | only. |
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315 | | - | (b) If the Attorney General has reasonable cause to |
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316 | | - | believe that a person has engaged in or is engaging in a |
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317 | | - | violation of this act, he or she may investigate according to |
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318 | | - | the investigative authority provided in Section 8-19-9, Code |
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319 | | - | of Alabama 1975. |
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320 | | - | (c) The Attorney General may use all remedies available |
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321 | | - | at law or in equity to enforce this act. |
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322 | | - | Section 8. This act shall become effective on the first |
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323 | | - | day of the third month following its passage and approval by |
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324 | | - | the Governor, or its otherwise becoming law, and shall apply |
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325 | | - | only to contracts entered into on or after October 1, 2023. |
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| 296 | + | governmental entity, the cost appears significantly higher |
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| 297 | + | than the services available to similarly oriented governmental |
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| 298 | + | entities not subject to similar requirements, or the quality |
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| 299 | + | of services or options appears significantly lower than the |
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| 300 | + | quality of services available to similarly oriented |
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| 301 | + | governmental entities not subject to similar requirements, or |
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| 302 | + | both. |
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| 303 | + | (3) The governmental entity determines that a waiver is |
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| 304 | + | clearly in the best interest of its constituents. |
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| 305 | + | Section 3. (a) No party may take action to penalize or |
---|
| 306 | + | threaten to penalize any governmental entity, company, or |
---|
| 307 | + | business for compliance with Section 2. |
---|
| 308 | + | (b) Any party violating a commitment made under |
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| 309 | + | subsection (b) of Section 2 or otherwise violating subsection |
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| 310 | + | (a) of this section shall have caused harm to the governmental |
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| 311 | + | entity, including by interfering with the governmental |
---|
| 312 | + | entity's sovereign interest in administering its programs and |
---|
| 313 | + | with the governmental entity's commercial relationships. |
---|
| 314 | + | Section 4. (a) No company in this state shall be |
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| 315 | + | required to engage in economic boycotts, to establish or |
---|
| 316 | + | implement policies, procedures, guidelines, rules, reports, |
---|
| 317 | + | products, services, notices, disclosures, or rates or pricing; |
---|
| 318 | + | to provide or submit answers to surveys or other information |
---|
| 319 | + | requests or disclosures; to invest in or divest of certain |
---|
| 320 | + | securities, stocks, bonds, bills, partnerships, or other |
---|
| 321 | + | investment arrangements; or to initiate other corporate or |
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| 322 | + | business practices that further social, political, or |
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| 323 | + | ideological interests including, but not limited to, economic |
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354 | | - | ________________________________________________ |
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355 | | - | President and Presiding Officer of the Senate |
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356 | | - | ________________________________________________ |
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357 | | - | Speaker of the House of Representatives |
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358 | | - | SB261 |
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359 | | - | Senate 18-May-23 |
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360 | | - | I hereby certify that the within Act originated in and passed |
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361 | | - | the Senate, as amended. |
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362 | | - | Patrick Harris, |
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363 | | - | Secretary. |
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364 | | - | House of Representatives |
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365 | | - | Passed: 31-May-23 |
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366 | | - | By: Senator Roberts |
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367 | | - | 168 |
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| 353 | + | boycott criteria or other similarly oriented rating. |
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| 354 | + | (b) No company in this state shall be penalized, have |
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| 355 | + | economic harm inflicted on it, have commercial relations |
---|
| 356 | + | limited, or have the activities of the company changed or |
---|
| 357 | + | limited because the company will not engage in economic |
---|
| 358 | + | boycotts; will not establish or implement policies, |
---|
| 359 | + | procedures, guidelines, rules, reports, products, services, |
---|
| 360 | + | notices, disclosures, or rates or pricing; will not provide or |
---|
| 361 | + | submit answers to surveys or other information requests or |
---|
| 362 | + | disclosures; will not invest in or divest of certain |
---|
| 363 | + | securities, stocks, bonds, bills, partnerships, or other |
---|
| 364 | + | investment arrangements; or will not initiate other corporate |
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| 365 | + | or business practices that further social, political, or |
---|
| 366 | + | ideological interests including, but not limited to, economic |
---|
| 367 | + | boycott criteria or other similarly oriented rating. |
---|
| 368 | + | Section 5. The Attorney General shall seek to prohibit |
---|
| 369 | + | the adoption of federal laws, rules, regulations, bulletins, |
---|
| 370 | + | executive orders, or other federal actions that may penalize, |
---|
| 371 | + | inflict economic harm on, limit commercial relations with, or |
---|
| 372 | + | change or limit the activities of a company in the state or a |
---|
| 373 | + | resident of the state based on the furtherance of economic |
---|
| 374 | + | boycott criteria or other similarly oriented rating. |
---|
| 375 | + | Section 6. If any provision of this act or its |
---|
| 376 | + | application to any person or circumstances is held invalid, |
---|
| 377 | + | then the invalidity does not affect other provisions or |
---|
| 378 | + | applications of this act, which can be given effect without |
---|
| 379 | + | the invalid provision or application, and to this end the |
---|
| 380 | + | provisions of this act are severable. |
---|
395 | | - | 196 |
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| 408 | + | 196 SB261 INTRODUCEDSB261 INTRODUCED |
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| 409 | + | Page 8 |
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| 410 | + | Section 7. (a) This act may be enforced by the Attorney |
---|
| 411 | + | General. |
---|
| 412 | + | (b) If the Attorney General has reasonable cause to |
---|
| 413 | + | believe that a person has engaged in, is engaging in, or is |
---|
| 414 | + | about to engage in a violation of this act, he or she may |
---|
| 415 | + | investigate according to the investigative authority provided |
---|
| 416 | + | in Section 8-19-9, Code of Alabama 1975. |
---|
| 417 | + | (c) The Attorney General may use all remedies available |
---|
| 418 | + | at law or in equity to enforce this act. In addition to any |
---|
| 419 | + | other remedies available at law or in equity, a company that |
---|
| 420 | + | serves as a fiduciary and that violates this act or any |
---|
| 421 | + | commitment made under this act shall be obligated to pay |
---|
| 422 | + | damages to the state in an amount equal to three times all |
---|
| 423 | + | monies paid to the company by the governmental entity or plan |
---|
| 424 | + | for the company's services. |
---|
| 425 | + | Section 8. This act shall become effective on the first |
---|
| 426 | + | day of the third month following its passage and approval by |
---|
| 427 | + | the Governor, or its otherwise becoming law. |
---|
| 428 | + | 197 |
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| 429 | + | 198 |
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| 430 | + | 199 |
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| 431 | + | 200 |
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| 432 | + | 201 |
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| 433 | + | 202 |
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| 434 | + | 203 |
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| 435 | + | 204 |
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| 436 | + | 205 |
---|
| 437 | + | 206 |
---|
| 438 | + | 207 |
---|
| 439 | + | 208 |
---|
| 440 | + | 209 |
---|
| 441 | + | 210 |
---|
| 442 | + | 211 |
---|
| 443 | + | 212 |
---|
| 444 | + | 213 |
---|
| 445 | + | 214 |
---|