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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
A bill to be entitled 1
An act relating to entities that boycott Israel; 2
amending s. 215.4725, F.S.; providing and revising 3
definitions; requiring the public fund to make its 4
best efforts to identify certain institutions, 5
organizations, agencies, governments, and other 6
entities in which the public fund has direct or 7
indirect holdings; requiring the public fund to 8
compile and make available the Scrutinized Companies 9
or Other Entities that Boycott Israel List; requiring 10
the public fund to quarterly update and make publicly 11
available such list; revising the procedures the 12
public fund must follow for assembling companies or 13
other entities on such list; revising reporting 14
requirements; requiring that specified actions be 15
adopted and incorporated into a certain statement; 16
revising the maximum percentage of the hypothetical 17
value of all assets under management by the public 18
fund which may be invested in scrutinized companies or 19
other entities under certain circumstances; amending 20
s. 265.286, F.S.; requiring an applicant to sign a 21
certification form attesting he or she complies with 22
specified antidiscrimination laws and does not engage 23
in antisemitism or antisemitic actions; disqualifying 24
grant applicants who engage in boycotts, antisemitic 25
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
action, or discrimination; requiring recipients fou nd 26
to have engaged in boycotts to pay a fine; authorizing 27
individuals to file a written complaint to the 28
Attorney General for not pursuing a cause of action 29
within a specified timeframe; requiring the Attorney 30
General to provide a written response within a 31
specified timeframe; amending s. 287.135, F.S.; 32
revising the definition of the term "awarding body"; 33
revising the contract values that prohibit a company 34
or other entity from being eligible to bid on, submit 35
a proposal for, or enter into or renew a contra ct with 36
an agency or local governmental entity; authorizing 37
agencies and local governmental entities to bid on, 38
submit a proposal for, or enter into or renew a 39
contract for goods and services with other entities 40
that boycott Israel under specified circumst ances; 41
requiring other entities to submit a certain 42
certification at the same time as they submit a bid or 43
proposal or enter into or renew a contract with an 44
agency or local governmental entity; authorizing civil 45
actions against companies and other entitie s under 46
specified conditions; providing an effective date. 47
48
Be It Enacted by the Legislature of the State of Florida: 49
50
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
Section 1. Section 215.4725, Florida Statutes, is amended 51
to read: 52
215.4725 Prohibited investments by the State Board of 53
Administration; companies that boycott Israel. — 54
(1) DEFINITIONS.—As used in this section, the term: 55
(a) "Agency" means any of the various state officers, 56
departments, boards, commissions, divisions, bureaus, and 57
councils and any other unit of organization, however designated, 58
of the executive branch of state government. 59
(b) "Boycott Israel" or "boycott of Israel" means refusing 60
to deal, terminating business activities, or taking other 61
actions to limit commercial relations with Israel, or persons or 62
entities doing business in Israel or in Israeli -controlled 63
territories, in a discriminatory manner. A statement by a United 64
States or foreign company, educational institution, nonprofit 65
organization, agency, or local governmental entity or unit 66
thereof, or a foreign government, that it is participating in a 67
boycott of Israel, or that it has initiated a boycott in 68
response to a request for a boycott of Israel or in compliance 69
with, or in furtherance of, calls for a boycott of Israel, may 70
be considered by the State Board of Administration to be 71
evidence that the United States or foreign a company or other 72
entity is participating in a boycott of Israel. The term 73
includes taking adverse action, including changes to published 74
commercial financial ratings, risk ratings, and controversy 75
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
ratings based on nonpecuniary factors, to inflict economic harm 76
on Israel or persons or entities doing business in Israel or in 77
Israeli-controlled territories. The term includes trade 78
practices that are prohibited by federal regulations is sued in 79
compliance with 50 U.S.C. s. 4842 and does not include trade 80
practices that are preempted by federal law. The term also 81
includes an academic boycott of Israel in which an educational 82
institution enacts or implements restrictive policies, or 83
otherwise participates in activities having the object or effect 84
of restricting ongoing or potential academic relationships, on 85
the basis of ties to the State of Israel or its academic, 86
educational, or research institutions; or by holding 87
researchers, students, p rospective students, guest lecturers, 88
and artists-in-residence or institutions collectively liable for 89
any alleged objectionable conduct by the State of Israel. An 90
educational institution is deemed to have engaged in an academic 91
boycott of Israel if any of its departments, centers, or other 92
organizations engages in a boycott or, in the case of a foreign 93
educational institution, if any faculty union recognized by that 94
institution engages in a boycott. 95
(c)(b) "Company" means an a sole proprietorship, 96
organization, association, corporation, partnership, joint 97
venture, limited partnership, limited liability partnership, 98
limited liability company, or other entity or business 99
association, including all wholly owned subsidiaries, majority -100
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owned subsidiaries, and parent companies, or affiliates having 101
more than 10 full-time employees. The term does not include a 102
natural person or sole proprietorship that exists for the 103
purpose of making profit . 104
(d)(c) "Direct holdings" in a company means all securities 105
of that company that are held directly by the public fund or in 106
an account or fund in which the public fund owns all shares or 107
interests. 108
(e)(d) "Indirect holdings" in a company means all 109
securities of that company that are held in a commingled fund or 110
other collective investment, such as a mutual or index fund, in 111
which the public fund owns shares or interests, together with 112
other investors not subject to this section or which are held in 113
an index fund. 114
(f) "Local governmental entity" means a county, 115
municipality, special district, or other political subdivision. 116
(g) "Other entity" means a United States or foreign 117
educational institution, nonprofit organization, agency, or 118
local governmental entity or unit thereof, or a foreign 119
government, including any of its public investment funds, public 120
pension funds, sovereign wealth funds, or other government -121
sponsored investment funds. 122
(h)(e) "Public fund" means all funds, assets, trustees 123
trustee, and other designates under the State Board of 124
Administration pursuant t o part I of chapter 121 and includes 125
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the endowment and retirement funds of the universities of the 126
State University System . 127
(i)(f) "Scrutinized companies or other entities" means 128
United States or foreign companies, educational institutions, 129
nonprofit organizations, and local governmental entities that 130
boycott Israel or engage in a boycott of Israel. 131
(2) IDENTIFICATION OF COMPANIES OR OTHER ENTITIES.— 132
(a) The public fund shall make its best efforts to 133
identify all scrutinized companies or other entities in which 134
the public fund has direct or indirect holdings or could 135
possibly have such holdings in the future. Such efforts include: 136
1. To the extent that the public fund finds it 137
appropriate, reviewing and relying on publicly available 138
information regarding companies or other entities that boycott 139
Israel, including information provided by nonprofit 140
organizations, research firms, international organizations, and 141
government entities; 142
2. Contacting asset managers contracted by the public fund 143
for information regarding companies or other entities that 144
boycott Israel; or 145
3. Contacting other institutional investors that prohibit 146
such investments or that have engaged with companies or other 147
entities that boycott Israel. 148
(b) By the first meeting of t he public fund following the 149
identification of scrutinized companies in accordance with 150
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
paragraph (a), the public fund shall compile and make available 151
the "Scrutinized Companies or Other Entities that Boycott Israel 152
List." 153
(c) The public fund shall upda te and make publicly 154
available quarterly the Scrutinized Companies or Other Entities 155
that Boycott Israel List based on evolving information from, 156
among other sources, those listed in paragraph (a). 157
(3) REQUIRED ACTIONS. —The public fund shall adhere to the 158
following procedures for assembling companies or other entities 159
on the Scrutinized Companies or Other Entities that Boycott 160
Israel List. 161
(a) Engagement.— 162
1. The public fund shall immediately de termine the 163
companies or other entities on the Scrutinized Companies or 164
Other Entities that Boycott Israel List in which the public fund 165
owns direct or indirect holdings or with which the state 166
currently contracts or has a grant agreement, as detailed unde r 167
s. 287.135 or s. 265.286, respectively . 168
2. For each company or other entity newly identified under 169
this paragraph, the public fund shall send a written notice 170
informing the company or other entity of its scrutinized company 171
status and that it may becom e subject to investment prohibition 172
or divestment by the public fund or may become barred from 173
future contracts or grants awarded by the state . The notice must 174
inform the company or other entity of the opportunity to clarify 175
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
its activities regarding the bo ycott of Israel and encourage the 176
company or other entity to cease the boycott of Israel within 90 177
days in order to avoid qualifying for investment prohibition or 178
divestment. 179
3. If, within 90 days after the public fund's first 180
engagement with a company or other entity pursuant to this 181
paragraph, the company or other entity ceases a boycott of 182
Israel, the company or other entity shall be removed from the 183
Scrutinized Companies or Other Entities that Boycott Israel 184
List, and the provisions of this section ceases shall cease to 185
apply to that company or other entity unless that company or 186
other entity resumes a boycott of Israel. 187
(b) Divestment.— 188
1. If, after 90 days following the public fund's first 189
engagement with a company or other entity pursuant to paragraph 190
(a), the company or other entity continues to boycott Israel, 191
the public fund must sell, redeem, divest, or withdraw all 192
publicly traded securities of the company or other entity from 193
the public fund within 12 months after the company's or other 194
entity's most recent appearance on the Scrutinized Companies or 195
Other Entities that Boycott Israel List. 196
2. If a company or other entity that ceased a boycott of 197
Israel following engagement pursuant to paragraph (a) resumes 198
such activities, this paragraph i mmediately applies, and the 199
public fund must send a written notice to the company or other 200
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entity. The company or other entity must also be immediately 201
reintroduced onto the Scrutinized Companies or Other Entities 202
that Boycott Israel List, as applicable. 203
(c) Prohibition.—The public fund is prohibited from 204
acquiring securities of companies or other entities on the 205
Scrutinized Companies or Other Entities that Boycott Israel 206
List, except as provided in paragraph (d) and subsection (6). 207
The public fund may no t acquire or hold the debt of a foreign 208
government if any of its public investment funds, public pension 209
funds, sovereign wealth funds, or other government -sponsored 210
investment funds are being used to support companies or other 211
entities that are engaged in a boycott of Israel. 212
(d) Excluded securities. —Notwithstanding this section, 213
paragraphs (b) and (c) do not apply to: 214
1. Indirect holdings. However, the public fund shall 215
submit letters to the managers of such investment funds 216
containing companies that boycott Israel requesting that they 217
consider removing such companies from the fund or create a 218
similar fund having indirect holdings devoid of such companies. 219
If the manager creates a similar fund, the public fund shall 220
replace all applicable investments w ith investments in the 221
similar fund in an expedited timeframe consistent with prudent 222
investing standards. For the purposes of this section, an 223
alternative investment, as the term is defined in s. 215.4401, 224
and securities that are not publicly traded are d eemed to be 225
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indirect holdings. 226
2. Exchange-traded funds. 227
(4) REPORTING.— 228
(a) The public fund shall file a report with each member 229
of the Board of Trustees of the State Board of Administration, 230
the President of the Senate, and the Speaker of the House of 231
Representatives which includes the Scrutinized Companies or 232
Other Entities that Boycott Israel List within 30 days after the 233
list is created. This report shall be made available to the 234
public. 235
(b) At each quarterly meeting of the Board of Trustees 236
thereafter, the public fund shall file a report, which shall be 237
made available to the public and to each member of the Board of 238
Trustees of the State Board of Administration, the President of 239
the Senate, and the Speaker of the House of Representatives, 240
which includes: 241
1. A summary of correspondence with companies or other 242
entities engaged by the public fund under subsection (3); 243
2. All investments sold, redeemed, divested, or withdrawn 244
in compliance with paragraph (3)(b); 245
3. All prohibited investments u nder paragraph (3)(c); 246
4. Any progress made under paragraph (3)(d); and 247
5. A list of all publicly traded securities held directly 248
by the public fund. 249
(5) INVESTMENT POLICY STATEMENT OBLIGATIONS. —The public 250
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fund's actions taken in compliance with this section, including 251
all good faith determinations regarding companies or other 252
entities as required by this act, shall be adopted and 253
incorporated into the public fund's investment policy statement 254
as provided in s. 215.475. 255
(6) INVESTMENT AND REINVESTME NT IN CERTAIN SCRUTINIZED 256
COMPANIES OR OTHER ENTITIES.—Notwithstanding any other provision 257
of this section, the public fund may invest in, cease divestment 258
from, or reinvest in certain scrutinized companies or other 259
entities if clear and convincing evidenc e shows that the value 260
of all scrutinized assets under management by the public fund 261
becomes equal to or less than 0.50 99.50 percent, or 50 basis 262
points, of the hypothetical value of all assets under management 263
by the public fund, assuming no investment prohibition or 264
divestment for any company or other entity had occurred under 265
subsection (3). Cessation of the investment prohi bition or the 266
divestment, or reinvestment or any new investment, in a 267
scrutinized company or other entity is limited to the minimum 268
steps necessary to avoid the contingency described in this 269
subsection. For any cessation of the investment prohibition or 270
divestment, or reinvestment or new investment authorized by this 271
subsection, the public fund shall provide a written report to 272
each member of the Board of Trustees of the State Board of 273
Administration, the President of the Senate, and the Speaker of 274
the House of Representatives in advance of the cessation of 275
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
investment prohibition or the divestment, or reinvestment or new 276
investment, updated semiannually thereafter as applicable, 277
setting forth the reasons and justification, supported by clear 278
and convincing evidence, for its decisions to cease the 279
investment prohibition or divestment, or to reinvest in 280
scrutinized companies or other entities. 281
Section 2. Paragraph (c) of subsection (6) of section 282
265.286, Florida Statutes, is amended, and paragraphs (d) and 283
(e) are added to that subsection, to read: 284
265.286 Art and cultural grants. — 285
(6) The division shall adopt rules establishing: 286
(c) The panel review process, including, but not limited 287
to, criteria for reviewing grant applications to ensure 288
compliance with applicable federal and state law, including 289
those related to discrimination and conflicts of interest. For 290
the purposes of satisfying the nondiscrimination requirements of 291
this section, each applicant must sign a certification form 292
attesting to the fact that he or she is complying with all 293
relevant antidiscrimination laws, including the anti -boycott 294
rules of this state pursuant to ss. 215.4725 and 287.135, and 295
will not engage in antisemitic discrimination as described in s. 296
1.015, including refusals t o deal based on an individual's or 297
entity's real or perceived connection to the State of Israel, 298
for the duration of the program or project for which his or her 299
grant is awarded. The division may not award any new grant that 300
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will, in whole or in part, inur e to the personal benefit of any 301
council or review panel member during the member's term of 302
office if the council or panel member participated in the vote 303
of the council or panel recommending the award. This paragraph 304
does not prohibit the division from aw arding a grant to an 305
entity with which a council or panel member is associated. 306
(d) A grant applicant found to be engaging in any boycott 307
action or antisemitic discrimination shall be disqualified from 308
grant eligibility until 10 years after any such acti on has 309
ceased. A grant recipient found to have engaged in a boycott of 310
Israel or antisemitic discrimination during the duration of the 311
project or program for which the grant was awarded shall be 312
subject to a penalty payable to the State Treasury of three 313
times the amount of the grant awarded for which the false 314
certification was submitted. 315
(e) If the Attorney General fails to pursue a cause of 316
action within 90 days after a violation of paragraph (c), an 317
individual has the right to file a written complaint to the 318
Attorney General, who in turn will be required to provide a 319
written response within 30 days after receipt of the complaint. 320
Section 3. Section 287.135, Florida Statutes, is amended 321
to read: 322
287.135 Prohibition against contracting with scrutin ized 323
companies or entities.— 324
(1) In addition to the terms defined in ss. 287.012 and 325
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
215.473, as used in this section, the term: 326
(a) "Awarding body" means, for purposes of state 327
contracts, an agency or the department, and for purposes of 328
local contracts, the governing body of the local governmental 329
entity. 330
(b) "Boycott of Israel" has the same meaning as defined in 331
s. 215.4725. 332
(c) "Business operations" means, for purposes specifically 333
related to Cuba or Syria, engaging in commerce in any form in 334
Cuba or Syria, including, but not limited to, acquiring, 335
developing, maintaining, owning, selling, possessing, leasing, 336
or operating equipment, facilities, personnel, products, 337
services, personal property, real property, military equipment, 338
or any other apparatus of business or commerce. 339
(d) "Local governmental entity" means a county, 340
municipality, special district, or other political subdivision 341
of the state. 342
(2) A company or other entity is ineligible to, and may 343
not, bid on, submit a proposal for, or en ter into or renew a 344
contract with an agency or local governmental entity for goods 345
or services of: 346
(a) One hundred thousand dollars or more Any amount if, at 347
the time of bidding on, submitting a proposal for, or entering 348
into or renewing such contract, t he company or other entity is 349
on the Scrutinized Companies or Other Entities that Boycott 350
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Israel List, created pursuant to s. 215.4725, or is engaged in a 351
boycott of Israel; or 352
(b) One thousand dollars or more, in the case of a foreign 353
educational institution, including tuition payments made 354
directly to such institutions by students receiving study abroad 355
credit at state colleges and universities if, at the time of 356
bidding on, submitting a proposal for, or entering into or 357
renewing such contract, the fore ign educational institution is 358
on the Scrutinized Companies and Other Entities that Boycott 359
Israel List pursuant to s. 215.4725, or is engaged in a boycott 360
of Israel; or 361
(c)(b) One million dollars or more if, at the time of 362
bidding on, submitting a propo sal for, or entering into or 363
renewing such contract, the company or other entity: 364
1. Is on the Scrutinized Companies with Activities in 365
Sudan List or the Scrutinized Companies with Activities in Iran 366
Terrorism Sectors List, created pursuant to s. 215.473 ; or 367
2. Is engaged in business operations in Cuba or Syria. 368
(3)(a) Any contract with an agency or local governmental 369
entity for goods or services of $1 million or more entered into 370
or renewed on or after: 371
1. July 1, 2011, through June 30, 2012, must contain a 372
provision that allows for the termination of such contract at 373
the option of the awarding body if the company is found to have 374
submitted a false certification as provided under subsection (5) 375
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or been placed on the Scrutinized Companies with Activi ties in 376
Sudan List or the Scrutinized Companies with Activities in the 377
Iran Petroleum Energy Sector List. 378
2. July 1, 2012, through September 30, 2016, must contain 379
a provision that allows for the termination of such contract at 380
the option of the awarding body if the company is found to have 381
submitted a false certification as provided under subsection 382
(5), been placed on the Scrutinized Companies with Activities in 383
Sudan List or the Scrutinized Companies with Activities in the 384
Iran Petroleum Energy Sector List, or been engaged in business 385
operations in Cuba or Syria. 386
3. October 1, 2016, through June 30, 2018, must contain a 387
provision that allows for the termination of such contract at 388
the option of the awarding body if the company: 389
a. Is found to have s ubmitted a false certification as 390
provided under subsection (5); 391
b. Has been placed on the Scrutinized Companies or Other 392
Entities that Boycott Israel List, or is engaged in a boycott of 393
Israel; 394
c. Has been placed on the Scrutinized Companies with 395
Activities in Sudan List or the Scrutinized Companies with 396
Activities in the Iran Petroleum Energy Sector List; or 397
d. Has been engaged in business operations in Cuba or 398
Syria. 399
4. July 1, 2018, must contain a provision that allows for 400
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the termination of suc h contract at the option of the awarding 401
body if the company or other entity is found to have submitted a 402
false certification as provided under subsection (5), been 403
placed on the Scrutinized Companies with Activities in Sudan 404
List, or been engaged in busin ess operations in Cuba or Syria. 405
5. July 1, 2018, must contain a provision that allows for 406
the termination of such contract at the option of the awarding 407
body if the company or other entity is found to have submitted a 408
false certification as provided und er subsection (5) or has been 409
placed on a list created pursuant to s. 215.473, relating to 410
scrutinized active business operations in Iran. 411
(b) Any contract with an agency or local governmental 412
entity for goods or services of any amount entered into or 413
renewed on or after July 1, 2018, must contain a provision that 414
allows for the termination of such contract at the option of the 415
awarding body if the company or other entity is found to have 416
been placed on the Scrutinized Companies or Other Entities that 417
Boycott Israel List or is engaged in a boycott of Israel. 418
(4) Notwithstanding subsection (2) or subsection (3), an 419
agency or local government al entity, on a case -by-case basis, 420
may allow a company on the Scrutinized Companies with Activities 421
in Sudan List, the Scrutinized Companies with Activities in the 422
Iran Petroleum Energy Sector List, or the Scrutinized Companies 423
with Activities in Iran Ter rorism Sectors List, or a company 424
engaged in business operations in Cuba or Syria, to be eligible 425
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for, bid on, submit a proposal for, or enter into or renew a 426
contract for goods or services of $1 million or more, or may 427
allow a company or other entity on the Scrutinized Companies or 428
Other Entities that Boycott Israel List to be eligible for, bid 429
on, submit a proposal for, or enter into or renew a contract for 430
goods or services of any amount, under the conditions set forth 431
in paragraph (a) or the conditions set forth in paragraph (b): 432
(a)1. With respect to a company on the Scrutinized 433
Companies with Activities in Sudan List, all of the following 434
occur: 435
a. The scrutinized business operations were made before 436
July 1, 2011. 437
b. The scrutinized business oper ations have not been 438
expanded or renewed after July 1, 2011. 439
c. The agency or local governmental entity determines that 440
it is in the best interest of the state or local community to 441
contract with the company. 442
d. The company has adopted, has publicized, and is 443
implementing a formal plan to cease scrutinized business 444
operations and to refrain from engaging in any new scrutinized 445
business operations. 446
2. With respect to a company engaged in business 447
operations in Cuba or Syria, all of the following occur: 448
a. The business operations were made before July 1, 2012. 449
b. The business operations have not been expanded or 450
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renewed after July 1, 2012. 451
c. The agency or local governmental entity determines that 452
it is in the best interest of the state or local co mmunity to 453
contract with the company. 454
d. The company has adopted, has publicized, and is 455
implementing a formal plan to cease business operations and to 456
refrain from engaging in any new business operations. 457
3. With respect to a company or other entity on the 458
Scrutinized Companies or Other Entities that Boycott Israel 459
List, all of the following occur: 460
a. The boycott of Israel was initiated before October 1, 461
2016. 462
b. The company or other entity certifies in writing that 463
it has ceased its boycott of Isr ael. 464
c. The agency or local governmental entity determines that 465
it is in the best interest of the state or local community to 466
contract with the company or other entity. 467
d. The company or other entity has adopted, has 468
publicized, and is implementing a f ormal plan to cease 469
scrutinized business operations and to refrain from engaging in 470
any new scrutinized business operations. 471
4. With respect to a company on the Scrutinized Companies 472
with Activities in the Iran Petroleum Energy Sector List as of 473
November 6, 2023, all of the following occur: 474
a. The scrutinized business operations were made before 475
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July 1, 2011. 476
b. The scrutinized business operations have not been 477
expanded or renewed after July 1, 2011. 478
c. The agency or local governmental entity determ ines that 479
it is in the best interest of the state or local community to 480
contract with the company. 481
d. The company has adopted, has publicized, and is 482
implementing a formal plan to cease scrutinized business 483
operations and to refrain from engaging in any new scrutinized 484
business operations. 485
5. With respect to a company on the Scrutinized Companies 486
with Activities in Iran Terrorism Sectors List other than those 487
companies included on the Scrutinized Companies with Activities 488
in the Iran Petroleum Energy Se ctor List as of November 6, 2023, 489
all of the following occur: 490
a. The scrutinized business operations were made before 491
January 10, 2024. 492
b. The scrutinized business operations have not been 493
expanded or renewed on or after January 10, 2024. 494
c. The agency or local governmental entity determines that 495
it is in the best interest of the state or local community to 496
contract with the company. 497
d. The company has adopted, has publicized, and is 498
implementing a formal plan to cease those scrutinized business 499
operations and to refrain from engaging in any new scrutinized 500
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business operations. 501
(b) One of the following occurs: 502
1. The local governmental entity makes a public finding 503
that, absent such an exemption, the local governmental entity 504
would be unable to o btain the goods or services for which the 505
contract is offered. 506
2. For a contract with an executive agency, the Governor 507
makes a public finding that, absent such an exemption, the 508
agency would be unable to obtain the goods or services for which 509
the contract is offered. 510
3. For a contract with an office of a state constitutional 511
officer other than the Governor, the state constitutional 512
officer makes a public finding that, absent such an exemption, 513
the office would be unable to obtain the goods or ser vices for 514
which the contract is offered. 515
(5) At the time a company submits a bid or proposal for a 516
contract or before the company enters into or renews a contract 517
with an agency or local governmental entity for goods or 518
services of $1 million or more, th e company must certify that 519
the company is not on the Scrutinized Companies with Activities 520
in Sudan List or the Scrutinized Companies with Activities in 521
Iran Terrorism Sectors List and that it does not have business 522
operations in Cuba or Syria. At the tim e a company or other 523
entity submits a bid or proposal for a contract or before the 524
company or other entity enters into or renews a contract with an 525
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agency or local governmental entity for goods or services of any 526
amount, the company or other entity must certify that the 527
company or other entity is not participating in a boycott of 528
Israel. 529
(a) If, after the agency or the local governmental entity 530
determines, using credible information available to the public, 531
that the company or other entity has submitted a false 532
certification, the agency or local governmental entity shall 533
provide the company or other entity with written notice of its 534
determination. The company or other entity shall have 90 days 535
following receipt of the notice to respond in writing and to 536
demonstrate that the determination of false certification was 537
made in error. If the company or other entity does not make such 538
demonstration within 90 days after receipt of the notice, the 539
agency or the local governmental entity shall bring a civil 540
action against the company or other entity. If a civil action is 541
brought and the court determines that the company or other 542
entity submitted a false certification, the company or other 543
entity shall pay the penalty described in subparagraph 1. and 544
all reasonable attorney fees and costs, including any costs for 545
investigations that led to the finding of false certification. 546
1. A civil penalty equal to the greater of $2 million or 547
twice the amount of the contract for which the false 548
certification was submitted shall be imposed. 549
2. The company or other entity is ineligible to bid on any 550
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contract with an agency or local governmental entity for 3 years 551
after the date the agency or local government al entity 552
determined that the company or other entity submitted a false 553
certification. 554
(b) A civil action to collect the penalties described in 555
paragraph (a) must commence within 3 years after the date the 556
false certification is submitted. 557
(6) Only the agency or local governmental entity that is a 558
party to the contract may cause a civil action to be brought 559
under this section. This section does not create or authorize a 560
private right of action or enforcement of the penalties provided 561
in this section. An unsuccessful bidder, or any other person 562
other than the agency or local governmental entity, may not 563
protest the award of a contract or contract renewal on the basis 564
of a false certification. 565
(7) This section preempts any ordinance or rule of any 566
agency or local governmental entity involving public contracts 567
for goods or services of: 568
(a) One million dollars or more with a company or other 569
entity engaged in scrutinized business operations. 570
(b) Any amount with a company or other entity that has 571
been placed on the Scrutinized Companies or Other Entities that 572
Boycott Israel List or is engaged in a boycott of Israel. 573
(8) The contracting prohibitions in this section 574
applicable to companies on the Scrutinized Companies with 575
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Activities in Sudan List or the Scrutinized Companies with 576
Activities in Iran Terrorism Sectors List or to companies 577
engaged in business operations in Cuba or Syria become 578
inoperative on the date that federal law ceases to authorize the 579
states to adopt and enforce such contracting prohib itions. 580
Section 4. This act shall take effect July 1, 2025. 581