Alabama 2023 Regular Session

Alabama Senate Bill SB261 Compare Versions

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44 By Senators Roberts, Orr, Allen, Livingston, Stutts, Shelnutt,
55 Sessions
66 RFD: Fiscal Responsibility and Economic Development
77 First Read: 27-Apr-23
88 2023 Regular Session
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15+7 83V3H2-1 04/25/2023 PMG (L)tgw 2023-1629
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16-Enrolled, An Act,
17-Relating to public contracts; to prohibit governmental
18-entities from entering into certain contracts with companies
19-that boycott businesses because the business engages in
20-certain sectors or does not meet certain environmental or
21-corporate governance standards or does not facilitate certain
22-activities; to provide that no company in the state shall be
23-required by a governmental entity, nor penalized by a
24-governmental entity for declining to engage in economic
25-boycotts or other actions that further social, political, or
26-ideological interests; to require the Attorney General to take
27-actions to prevent federal laws or actions from penalizing,
28-inflicting harm on, limiting commercial relations with, or
29-changing or limiting the activities of companies or residents
30-of the state based on the furtherance of economic boycott
31-criteria; and to authorize the Attorney General to investigate
32-and enforce this act; and to provide definitions.
33-BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
34-Section 1. As used in this act, the following terms
35-have the following meanings:
36-(1) COMPANY. A for-profit entity, organization,
37-association, corporation, partnership, joint venture, limited
38-partnership, limited liability partnership, or limited
39-liability company. The term does not include sole
40-proprietorships.
41-(2) ECONOMIC BOYCOTT. Without an ordinary business
17+SYNOPSIS:
18+This bill would prohibit a governmental entity
19+from entering into a public contract for goods or
20+services with certain companies or businesses that
21+engage in the economic boycott of businesses in certain
22+sectors and industries; that fail to meet or commit to
23+meet certain environmental standards; that fail to meet
24+or commit to meet certain corporate governance
25+criteria; or that fail to facilitate certain
26+activities.
27+This bill would prohibit any company in the
28+state from being required to engage in economic
29+boycotts or other actions that further social,
30+political, or ideological interests, including economic
31+boycott criteria.
32+This bill would prohibit any company in the
33+state from being penalized for declining to engage in
34+economic boycotts or other actions that further social,
35+political, or ideological interests, including economic
36+boycott criteria.
37+This bill would require the Attorney General to
38+seek to prohibit the adoption of federal laws or
39+actions that may penalize, inflict harm on, limit
40+commercial relations with, or change or limit the
41+activities of companies or residents of the state based
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71-purpose, refusing to deal with, terminating business
72-activities with, or otherwise taking any commercial action
73-that is intended to penalize or inflict economic harm on a
74-company solely because the company, without violating
75-controlling law or regulation, does any of the following:
76-a. Engages in the exploration, production, utilization,
77-transportation, sale, or manufacturing of fossil fuel-based
78-energy, timber, mining, or agriculture.
79-b. Engages in, facilitates, or supports the
80-manufacture, import, distribution, marketing or advertising,
81-sale, or lawful use of firearms, ammunition, or component
82-parts and accessories of firearms or ammunition.
83-c. Does not meet, is not expected to meet, or does not
84-commit to meet environmental standards or disclosure criteria,
85-in particular to eliminate, reduce, offset, or disclose
86-greenhouse gas emissions.
87-d. Does not meet, is not expected to meet, or does not
88-commit to meet corporate employment or board composition,
89-compensation, or disclosure criteria.
90-e. Does not facilitate, is not expected to facilitate,
91-or does not commit to facilitate access to abortion or sex or
92-gender change surgery, medications, treatment, or therapies.
93-(3) GOVERNMENTAL ENTITY. A state agency, department,
94-regulatory body, board, bureau, or commission, or any county,
95-municipality, incorporated or unincorporated local government,
96-or other political subdivision of the state.
97-(4) ORDINARY BUSINESS PURPOSE. Includes a purpose that
98-is related to business operations and excludes a purpose that
71+on the furtherance of economic boycott criteria.
72+This bill would also authorize the Attorney
73+General to investigate violations of and enforce this
74+act.
75+A BILL
76+TO BE ENTITLED
77+AN ACT
78+Relating to public contracts; to prohibit governmental
79+entities from entering into certain contracts with companies
80+that boycott businesses because the business engages in
81+certain sectors or does not meet certain environmental or
82+corporate governance standards or does not facilitate certain
83+activities; to provide that no company in the state shall be
84+required, nor penalized for declining to engage in economic
85+boycotts or other actions that further social, political, or
86+ideological interests; to require the Attorney General to take
87+actions to prevent federal laws or actions from penalizing,
88+inflicting harm on, limiting commercial relations with, or
89+changing or limiting the activities of companies or residents
90+of the state based on the furtherance of economic boycott
91+criteria; and to authorize the Attorney General to investigate
92+and enforce this act; and to provide definitions.
93+BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
94+Section 1. As used in this act, the following terms
95+have the following meanings:
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128-is solely related to furthering social, political, or
129-ideological interests.
130-Section 2. (a) This section applies only to a contract
131-that meets both of the following:
132-(1) Is between a governmental entity and a company with
133-10 or more full-time employees.
134-(2) Will pay or may pay a company at least fifteen
135-thousand dollars ($15,000) over the term of the contract
136-wholly or partly from public funds of the governmental entity;
137-provided, however, this subdivision shall apply separately to
138-all companies in a multiple-party contract.
139-(b) Except as provided by subsection (c), a
140-governmental entity may not enter into a contract with a
141-company for goods or services unless the contract contains a
142-written verification from the company that the company,
143-without violating controlling law or regulation, does not and
144-will not, during the term of the contract, engage in economic
145-boycotts.
146-(c) Subsection (b) does not apply to a contract related
147-to the issuance, incurrence, or management of debt
148-obligations, to the deposit, custody, management, borrowing,
149-or investment of funds, or to the procurement of insurance or
150-other financial products, or financial advisory services, or a
151-contract that would prevent the governmental entity from
152-obtaining the supplies or services to be provided in an
153-economically practicable manner.
154-(d) If a governmental entity is unable to comply with
155-this section without significantly increasing costs or
125+(1) COMPANY. A for-profit entity, organization,
126+association, corporation, partnership, joint venture, limited
127+partnership, limited liability partnership, or limited
128+liability company, including a wholly owned subsidiary,
129+majority-owned subsidiary, parent company, or affiliate of
130+those entities or business associations. The term does not
131+include sole proprietorships.
132+(2) ECONOMIC BOYCOTT. Without an ordinary business
133+purpose, refusing to deal with, terminating business
134+activities with, or otherwise taking any commercial action
135+that is intended to penalize, inflict economic harm on, limit
136+commercial relations with, or change or limit the activities
137+of a company because the company, without violating
138+controlling law, does any of the following:
139+a. Engages in the exploration, production, utilization,
140+transportation, sale, or manufacturing of fossil fuel-based
141+energy, timber, mining, or agriculture.
142+b. Engages in, facilitates, or supports the
143+manufacture, import, distribution, marketing or advertising,
144+sale, or lawful use of firearms, ammunition, or component
145+parts and accessories of firearms or ammunition.
146+c. Does not meet, is not expected to meet, or does not
147+commit to meet environmental standards or disclosure criteria,
148+in particular to eliminate, reduce, offset, or disclose
149+greenhouse gas emissions.
150+d. Does not meet, is not expected to meet, or does not
151+commit to meet corporate employment or board composition,
152+compensation, or disclosure criteria.
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185-limiting the quality of options or services available, or
186-both, the governmental entity may waive the requirements upon
187-a finding, posted on the governmental entity's publicly
188-available website that:
189-(1) The governmental entity has made reasonable and
190-good faith efforts to obtain services meeting the requirements
191-of this section and has included the requirements in the
192-governmental entity's minimum selection criteria.
193-(2) Based on objective information available to the
194-governmental entity, the cost appears significantly higher
195-than the services available to similarly oriented governmental
196-entities not subject to similar requirements, or the quality
197-of services or options appears significantly lower than the
198-quality of services available to similarly oriented
199-governmental entities not subject to similar requirements, or
200-both.
201-(3) The governmental entity determines that a waiver is
202-clearly in the best interest of the public.
203-Section 3. (a) No party may take action to penalize or
204-threaten to penalize any governmental entity, company, or
205-business for compliance with Section 2.
206-(b) Any party violating a commitment made under
207-subsection (b) of Section 2 or otherwise violating subsection
208-(a) of this section shall have caused harm to the governmental
209-entity, including by interfering with the governmental
210-entity's sovereign interest in administering its programs and
211-with the governmental entity's commercial relationships.
212-Section 4. (a) No company in this state shall be
182+e. Does not facilitate, is not expected to facilitate,
183+or does not commit to facilitate access to abortion or sex or
184+gender change surgery, medications, treatment, or therapies.
185+f. Does business with a company described by paragraphs
186+a. through e.
187+(3) GOVERNMENTAL ENTITY. A state agency, department,
188+regulatory body, board, bureau, or commission, or any county,
189+municipality, incorporated or unincorporated local government,
190+or other political subdivision of the state.
191+(4) ORDINARY BUSINESS PURPOSE. Excludes any purpose to
192+further social, political, or ideological interest, including,
193+but not limited to, economic boycott criteria or other
194+similarly oriented rating. A company may reasonably be
195+determined to have taken an action, or considered a factor,
196+with a purpose to further social, political, or ideological
197+interests based upon evidence indicating such a purpose,
198+including, but not limited to: (i) branding, advertising,
199+statements, explanations, reports, letters to clients,
200+communications with portfolio companies, statements of
201+principles, or commitments, or (ii) participation in,
202+affiliation with, or status as a signatory to any coalition,
203+initiative, joint statement of principles, or agreement.
204+Section 2. (a) This section applies only to a contract
205+that meets both of the following:
206+(1) Is between a governmental entity and a company with
207+10 or more full-time employees.
208+(2) Will pay or may pay a company at least fifteen
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
243-boycotts, to establish or implement policies, procedures,
244-guidelines, rules, reports, products, services, notices,
245-disclosures, or rates or pricing; to provide or submit answers
246-to surveys or other information requests or disclosures; to
247-invest in or divest of certain securities, stocks, bonds,
248-bills, partnerships, or other investment arrangements; or to
249-initiate other corporate or business practices that further
250-social, political, or ideological interests including, but not
251-limited to, economic boycott criteria or other similarly
252-oriented rating.
253-(b) No company in this state shall be penalized, have
254-economic harm inflicted on it, have commercial relations
255-limited, or have the activities of the company changed or
256-limited by a governmental entity because the company will not
257-engage in economic boycotts; will not establish or implement
258-policies, procedures, guidelines, rules, reports, products,
259-services, notices, disclosures, or rates or pricing; will not
260-provide or submit answers to surveys or other information
261-requests or disclosures; will not invest in or divest of
262-certain securities, stocks, bonds, bills, partnerships, or
263-other investment arrangements; or will not initiate other
264-corporate or business practices that further social,
265-political, or ideological interests including, but not limited
266-to, economic boycott criteria or other similarly oriented
267-rating.
268-Section 5. The Attorney General shall seek to prohibit
269-the adoption of federal laws, rules, regulations, bulletins,
239+wholly or partly from public funds of the governmental entity;
240+provided, however, this subdivision shall apply separately to
241+all companies in a multiple-party contract.
242+(b) Except as provided by subsection (c), a
243+governmental entity may not enter into a contract with a
244+company for goods or services unless the contract contains a
245+written verification from the company that the company does
246+not and will not, during the term of the contract, engage in
247+economic boycotts.
248+(c) Subsection (b) does not apply to a governmental
249+entity that determines the requirements of subsection (b) are
250+inconsistent with the governmental entity's constitutional or
251+statutory duties related to the issuance, incurrence, or
252+management of debt obligations or the deposit, custody,
253+management, borrowing, or investment of funds, or would
254+prevent the governmental entity from obtaining the supplies or
255+services to be provided in an economically practicable manner.
256+(d) If a governmental entity is unable to comply with
257+this section without significantly increasing costs or
258+limiting the quality of options or services available, or
259+both, the governmental entity may waive the requirements upon
260+a finding, posted on the governmental entity's publicly
261+available website that:
262+(1) The governmental entity has made reasonable and
263+good faith efforts to obtain services meeting the requirements
264+of this section and has included the requirements in the
265+governmental entity's minimum selection criteria.
266+(2) Based on objective information available to the
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299-executive orders, or other federal actions that may penalize,
300-inflict economic harm on, limit commercial relations with, or
301-change or limit the activities of a company in the state or a
302-resident of the state based on the furtherance of economic
303-boycott criteria or other similarly oriented rating.
304-Section 6. If any provision of this act or its
305-application to any person or circumstances is held invalid,
306-then the invalidity does not affect other provisions or
307-applications of this act, which can be given effect without
308-the invalid provision or application, and to this end the
309-provisions of this act are severable.
310-Section 7. (a) This act may be enforced only by the
311-Attorney General. If the Attorney General declines to enforce
312-a violation of Section 4, a company can bring a civil action
313-against the governmental entity to seek injunctive relief
314-only.
315-(b) If the Attorney General has reasonable cause to
316-believe that a person has engaged in or is engaging in a
317-violation of this act, he or she may investigate according to
318-the investigative authority provided in Section 8-19-9, Code
319-of Alabama 1975.
320-(c) The Attorney General may use all remedies available
321-at law or in equity to enforce this act.
322-Section 8. This act shall become effective on the first
323-day of the third month following its passage and approval by
324-the Governor, or its otherwise becoming law, and shall apply
325-only to contracts entered into on or after October 1, 2023.
296+governmental entity, the cost appears significantly higher
297+than the services available to similarly oriented governmental
298+entities not subject to similar requirements, or the quality
299+of services or options appears significantly lower than the
300+quality of services available to similarly oriented
301+governmental entities not subject to similar requirements, or
302+both.
303+(3) The governmental entity determines that a waiver is
304+clearly in the best interest of its constituents.
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
309+subsection (b) of Section 2 or otherwise violating subsection
310+(a) of this section shall have caused harm to the governmental
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
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
322+business practices that further social, political, or
323+ideological interests including, but not limited to, economic
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354-________________________________________________
355-President and Presiding Officer of the Senate
356-________________________________________________
357-Speaker of the House of Representatives
358-SB261
359-Senate 18-May-23
360-I hereby certify that the within Act originated in and passed
361-the Senate, as amended.
362-Patrick Harris,
363-Secretary.
364-House of Representatives
365-Passed: 31-May-23
366-By: Senator Roberts
367-168
353+boycott criteria or other similarly oriented rating.
354+(b) No company in this state shall be penalized, have
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
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.
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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.
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