Florida 2025 2025 Regular Session

Florida House Bill H1519 Comm Sub / Bill

Filed 03/27/2025

                       
 
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A bill to be entitled 1 
An act relating to entities that boycott Israel; 2 
amending s. 215.4725, F.S.; defining terms; 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; requiring the public fund 14 
to file a certain report with each member of the Board 15 
of Trustees of the State Board of Administration and 16 
with the Legislature which includes such list; 17 
requiring the public fund to file a certain report 18 
with a summary of correspondence between other 19 
entities and the public fund; requiring that specified 20 
actions be adopted and incorporated into a certain 21 
statement; amending s. 265.286, F.S.; requiring 22 
applicants to sign a certification form attesting that 23 
they are complying with specified antidiscrimination 24 
laws and will not engage in antisemitic discrimination 25     
 
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or antisemitic speech in conjunction with the pro gram 26 
or project for which their grant is awarded ; 27 
disqualifying for a specified timeframe grant 28 
applicants that engage in boycotts, antisemitic 29 
discrimination, or antisemitic speech; requiring 30 
recipients found to have engaged in boycotts or 31 
antisemitic discrimination in violation of their 32 
certification to pay a specified penalty; authorizing 33 
individuals to file a written complaint to the 34 
Attorney General for not pursuing a cause of action 35 
within a specified timeframe; requiring the Attorney 36 
General to provide a written response within a 37 
specified timeframe; amending s. 287.135, F.S.; 38 
revising the definition of the term "awarding body"; 39 
revising the contract values that prohibit a company 40 
or other entity from being eligible to bid on, submit 41 
a proposal for, or enter into or renew a contract with 42 
an agency or local governmental entity; requiring 43 
agencies and local governmental entities that enter 44 
into or renew a contract to include a specific 45 
termination provision; authorizing agencies and local 46 
governmental entities to bid on, submit a proposal 47 
for, or enter into or renew a contract for goods and 48 
services with other entities that boycott Israel under 49 
specified circumstances; requiring other entities to 50     
 
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submit a certain certification at the same time as 51 
they submit a bid or proposal or enter into or renew a 52 
contract with an agency or local governmental entity; 53 
authorizing civil actions against companies and other 54 
entities under specified conditions; providing an 55 
effective date. 56 
 57 
Be It Enacted by the Legislatu re of the State of Florida: 58 
 59 
 Section 1.  Section 215.4725, Florida Statutes, is amended 60 
to read: 61 
 215.4725  Prohibited investments by the State Board of 62 
Administration; companies that boycott Israel. — 63 
 (1)  DEFINITIONS.—As used in this section, the term : 64 
 (a)  "Agency" means any of the various state officers, 65 
departments, boards, commissions, divisions, bureaus, and 66 
councils and any other unit of organization, however designated, 67 
of the executive branch of state government. 68 
 (b) "Boycott Israel" or "boy cott of Israel" means refusing 69 
to deal, terminating business activities, or taking other 70 
actions to limit commercial relations with Israel, or persons or 71 
entities doing business in Israel or in Israeli -controlled 72 
territories, in a discriminatory manner. A statement by a 73 
company, an educational institution, a nonprofit organization, 74 
an agency, a local governmental entity or unit thereof, or a 75     
 
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foreign government that it is participating in a boycott of 76 
Israel, or that it has initiated a boycott in response to a 77 
request for a boycott of Israel or in compliance with, or in 78 
furtherance of, calls for a boycott of Israel, may be considered 79 
by the State Board of Administration to be evidence that a 80 
company or other entity is participating in a boycott of Israel. 81 
The term includes taking adverse action, including changes to 82 
published commercial financial ratings, risk ratings, and 83 
controversy ratings based on nonpecuniary factors, to inflict 84 
economic harm on Israel or persons or entities doing business in 85 
Israel or in Israeli-controlled territories. The term includes 86 
trade practices that are prohibited by federal regulations 87 
issued in compliance with 50 U.S.C. s. 4842 and does not include 88 
trade practices that are preempted by federal law. The term also 89 
includes an academic boycott of Israel in which an educational 90 
institution enacts or implements restrictive policies, or 91 
otherwise participates in activities having the object or effect 92 
of restricting ongoing or potential academic relationships, on 93 
the basis of ties to th e State of Israel or its academic, 94 
educational, or research institutions; or by holding 95 
researchers, students, prospective students, guest lecturers, 96 
and artists-in-residence, or institutions collectively liable 97 
for any alleged objectionable conduct by the State of Israel. An 98 
educational institution is deemed to have engaged in an academic 99 
boycott of Israel if any of its departments, centers, or other 100     
 
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organs engages in a boycott or, in the case of a foreign 101 
educational institution, if any faculty union reco gnized by that 102 
institution engages in a boycott. 103 
 (c)(b) "Company" means a sole proprietorship, 104 
organization, association, corporation, partnership, joint 105 
venture, limited partnership, limited liability partnership, 106 
limited liability company, or other ent ity or business 107 
association, including all wholly owned subsidiaries, majority -108 
owned subsidiaries, and parent companies, or affiliates having 109 
more than 10 full-time employees. The term does not include a 110 
natural person or a sole proprietorship that exists for the 111 
purpose of making profit . 112 
 (d)(c) "Direct holdings" in a company means all securities 113 
of that company that are held directly by the public fund or in 114 
an account or fund in which the public fund owns all shares or 115 
interests. 116 
 (e)(d) "Indirect holdings" in a company means all 117 
securities of that company that are held in a commingled fund or 118 
other collective investment, such as a mutual or index fund, in 119 
which the public fund owns shares or interests, together with 120 
other investors not subject to this section or which are held in 121 
an index fund. 122 
 (f)  "Local governmental entity" means a county, 123 
municipality, special district, or other political subdivision. 124 
 (g)  "Other entity" means an educational institution, a 125     
 
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nonprofit organization, an agency, a loca l governmental entity 126 
or unit thereof, or a foreign government, including any of its 127 
public investment funds, public pension funds, sovereign wealth 128 
funds, or other government -sponsored investment funds. 129 
 (h)(e) "Public fund" means all funds, assets, trustees 130 
trustee, and other designates under the State Board of 131 
Administration pursuant to part I of chapter 121. 132 
 (i)(f) "Scrutinized companies or other entities" means 133 
companies or other entities that boycott Israel or engage in a 134 
boycott of Israel. 135 
 (2)  IDENTIFICATION OF COMPANIES OR OTHER ENTITIES.— 136 
 (a)  The public fund shall make its best efforts to 137 
identify all scrutinized companies or other entities in which 138 
the public fund has direct or indirect holdings or could 139 
possibly have such holdings in the future. Such efforts include: 140 
 1.  To the extent that the public fund finds it 141 
appropriate, reviewing and relying on publicly available 142 
information regarding companies or other entities that boycott 143 
Israel, including information provided by nonprofit 144 
organizations, research firms, international organizations, and 145 
government entities; 146 
 2.  Contacting asset managers contracted by the public fund 147 
for information regarding companies or other entities that 148 
boycott Israel; or 149 
 3.  Contacting other institution al investors that prohibit 150     
 
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such investments or that have engaged with companies or other 151 
entities that boycott Israel. 152 
 (b)  By the first meeting of the public fund following the 153 
identification of scrutinized companies in accordance with 154 
paragraph (a), the public fund shall compile and make available 155 
the "Scrutinized Companies or Other Entities that Boycott Israel 156 
List." 157 
 (c)  The public fund shall update and make publicly 158 
available quarterly the Scrutinized Companies or Other Entities 159 
that Boycott Israel L ist based on evolving information from, 160 
among other sources, those listed in paragraph (a). 161 
 (3)  REQUIRED ACTIONS. —The public fund shall adhere to the 162 
following procedures for assembling companies or other entities 163 
on the Scrutinized Companies or Other Entities that Boycott 164 
Israel List. 165 
 (a)  Engagement.— 166 
 1.  The public fund shall immediately determine the 167 
companies or other entities on the Scrutinized Companies or 168 
Other Entities that Boycott Israel List in which the public fund 169 
owns direct or indirect ho ldings or with which the state 170 
currently contracts or has a grant agreement, as detailed under 171 
ss. 287.135 and 265.286, respectively . 172 
 2.  For each company or other entity newly identified under 173 
this paragraph, the public fund shall send a written notice 174 
informing the company or other entity of its scrutinized company 175     
 
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status and that it may become subject to investment prohibition 176 
or divestment by the public fund or may become barred from 177 
future contracts or grants awarded by the state . The notice must 178 
inform the company or other entity of the opportunity to clarify 179 
its activities regarding the boycott of Israel and encourage the 180 
company or other entity to cease the boycott of Israel within 90 181 
days in order to avoid qualifying for investment prohibition or 182 
divestment. 183 
 3.  If, within 90 days after the public fund's first 184 
engagement with a company or other entity pursuant to this 185 
paragraph, the company or other entity ceases a boycott of 186 
Israel, the company or other entity shall be removed from the 187 
Scrutinized Companies or Other Entities that Boycott Israel 188 
List, and the provisions of this section ceases shall cease to 189 
apply to that company or other entity unless that company or 190 
other entity resumes a boycott of Israel. 191 
 (b)  Divestment.— 192 
 1.  If, after 90 days following the public fund's first 193 
engagement with a company or other entity pursuant to paragraph 194 
(a), the company or other entity continues to boycott Israel, 195 
the public fund must sell, redeem, divest, or withdraw all 196 
publicly traded securities of the company or other entity from 197 
the public fund within 12 months after the company's or other 198 
entity's most recent appearance on the Scrutinized Companies or 199 
Other Entities that Boycott Israel List. 200     
 
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 2.  If a company or other entity that ceased a boycott of 201 
Israel following engagement pursuant to paragraph (a) resumes 202 
such activities, this paragraph immediately applies, and the 203 
public fund must send a written notice to the company or other 204 
entity. The company or other entity must also be immediately 205 
reintroduced onto the Scrutinized Companies or Other Entities 206 
that Boycott Israel List, as applicable. 207 
 (c)  Prohibition.—The public fund is prohibited from 208 
acquiring securities of companies or other entities on the 209 
Scrutinized Companies or Other Entities that Boycott Israel 210 
List, except as provided in paragraph (d) and subsection (6). 211 
The public fund and the endowments and retirement funds of the 212 
State University System may not acquire or hold the debt of a 213 
foreign government that is on the Scruti nized Companies or Other 214 
Entities that Boycott Israel List, or of a foreign government 215 
with a sovereign wealth fund that is on the Scrutinized 216 
Companies or Other Entities that Boycott Israel List, when the 217 
foreign government has authority to actively contr ol or manage 218 
the fund. 219 
 (d)  Excluded securities. —Notwithstanding this section, 220 
paragraphs (b) and (c) do not apply to: 221 
 1.  Indirect holdings. However, the public fund shall 222 
submit letters to the managers of such investment funds 223 
containing companies that boycott Israel requesting that they 224 
consider removing such companies from the fund or create a 225     
 
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similar fund having indirect holdings devoid of such companies. 226 
If the manager creates a similar fund, the public fund shall 227 
replace all applicable investments with investments in the 228 
similar fund in an expedited timeframe consistent with prudent 229 
investing standards. For the purposes of this section, an 230 
alternative investment, as the term is defined in s. 215.4401, 231 
and securities that are not publicly traded are deemed to be 232 
indirect holdings. 233 
 2.  Exchange-traded funds. 234 
 (4)  REPORTING.— 235 
 (a)  The public fund shall file a report with each member 236 
of the Board of Trustees of the State Board of Administration, 237 
the President of the Senate, and the Speaker of the Hous e of 238 
Representatives which includes the Scrutinized Companies or 239 
Other Entities that Boycott Israel List within 30 days after the 240 
list is created. This report shall be made available to the 241 
public. 242 
 (b)  At each quarterly meeting of the Board of Trustees 243 
thereafter, the public fund shall file a report, which shall be 244 
made available to the public and to each member of the Board of 245 
Trustees of the State Board of Administration, the President of 246 
the Senate, and the Speaker of the House of Representatives, 247 
which includes: 248 
 1.  A summary of correspondence with companies or other 249 
entities engaged by the public fund under subsection (3); 250     
 
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 2.  All investments sold, redeemed, divested, or withdrawn 251 
in compliance with paragraph (3)(b); 252 
 3.  All prohibited investments under paragraph (3)(c); 253 
 4.  Any progress made under paragraph (3)(d); and 254 
 5.  A list of all publicly traded securities held directly 255 
by the public fund. 256 
 (5)  INVESTMENT POLICY STATEMENT OBLIGATIONS. —The public 257 
fund's actions taken in compliance with thi s section, including 258 
all good faith determinations regarding companies or other 259 
entities as required by this act, shall be adopted and 260 
incorporated into the public fund's investment policy statement 261 
as provided in s. 215.475. 262 
 (6)  INVESTMENT AND REINVESTM ENT IN CERTAIN SCRUTINIZED 263 
COMPANIES OR OTHER ENTITIES.—Notwithstanding any other provision 264 
of this section, the public fund may invest in, cease divestment 265 
from, or reinvest in certain scrutinized companies or other 266 
entities if clear and convincing eviden ce shows that the value 267 
of all assets under management by the public fund becomes equal 268 
to or less than 99.50 percent, or 50 basis points, of the 269 
hypothetical value of all assets under management by the public 270 
fund, assuming no investment prohibition or di vestment for any 271 
company or other entity had occurred under subsection (3). 272 
Cessation of the investment prohibition or the divestment, or 273 
reinvestment or any new investment, in a scrutinized company or 274 
other entity is limited to the minimum steps necessary to avoid 275     
 
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the contingency described in this subsection. For any cessation 276 
of the investment prohibition or divestment, or reinvestment or 277 
new investment authorized by this subsection, the public fund 278 
shall provide a written report to each member of the Board of 279 
Trustees of the State Board of Administration, the President of 280 
the Senate, and the Speaker of the House of Representatives in 281 
advance of the cessation of investment prohibition or the 282 
divestment, or reinvest ment or new investment, updated 283 
semiannually thereafter as applicable, setting forth the reasons 284 
and justification, supported by clear and convincing evidence, 285 
for its decisions to cease the investment prohibition or 286 
divestment, or to reinvest in scrutiniz ed companies or other 287 
entities. 288 
 (7)  STATE UNIVERSITY SYSTEM COMPLIANCE. —The endowment and 289 
retirement funds of the universities of the State University 290 
System are required to comply with the divestment requirement 291 
and prohibition of acquiring securities of companies or other 292 
entities on the Scrutinized Companies or Other Entities that 293 
Boycott Israel List. The endowment and retirement funds of the 294 
universities of the State University System are provided the 295 
same exemptions as provided in paragraph (3)(d). 296 
 Section 2.  Paragraph (c) of subsection (6) of section 297 
265.286, Florida Statutes, is amended, and paragraphs (d) and 298 
(e) are added to that subsection, to read: 299 
 265.286  Art and cultural grants. — 300     
 
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 (6)  The division shall adopt rules establishing: 301 
 (c)  The panel review process, including, but not limited 302 
to, criteria for reviewing grant applications to ensure 303 
compliance with applicable federal and state law, including 304 
those related to discrimination and conflicts of interest. For 305 
the purposes of satisfyi ng the nondiscrimination requirements of 306 
this section, each applicant must sign a certification form 307 
attesting to the fact that the applicant is complying with all 308 
relevant antidiscrimination laws, including the anti -boycott 309 
rules of this state pursuant to ss. 215.4725 and 287.135, and 310 
will not engage in antisemitic discrimination as defined in s. 311 
1.015, including refusals to deal based on an individual's or 312 
entity's real or perceived connection to the State of Israel, or 313 
engage in antisemitic speech as def ined by s. 1.015, in 314 
conjunction with the program or project for which the grant is 315 
awarded. The division may not award any new grant that will, in 316 
whole or in part, inure to the personal benefit of any council 317 
or review panel member during the member's te rm of office if the 318 
council or panel member participated in the vote of the council 319 
or panel recommending the award. This paragraph does not 320 
prohibit the division from awarding a grant to an entity with 321 
which a council or panel member is associated. 322 
 (d)  A grant applicant found to be engaging in any boycott 323 
action, antisemitic discrimination, or antisemitic speech in 324 
conjunction with the program or project for which the grant is 325     
 
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awarded shall be disqualified from grant eligibility until 10 326 
years after any such action has ceased. A grant recipient found 327 
to have engaged in a boycott of Israel or antisemitic 328 
discrimination during the duration of the project or program for 329 
which the grant was awarded shall be subject to a penalty 330 
payable to the State Treasury o f three times the amount of the 331 
grant received for which the false certification was submitted. 332 
 (e)  If the Attorney General fails to pursue a cause of 333 
action within 90 days after a violation of paragraph (c), 334 
individuals have the right to file a written complaint to the 335 
Attorney General, who in turn will be required to provide a 336 
written response within 30 days after receipt of the complaint. 337 
 Section 3.  Section 287.135, Florida Statutes, is amended 338 
to read: 339 
 287.135  Prohibition against contracting wit h scrutinized 340 
companies or entities.— 341 
 (1)  In addition to the terms defined in ss. 287.012 and 342 
215.473, as used in this section, the term: 343 
 (a)  "Awarding body" means, for purposes of state 344 
contracts, an agency or the department, and for purposes of 345 
local contracts, the governing body of the local governmental 346 
entity. 347 
 (b)  "Boycott of Israel" has the same meaning as defined in 348 
s. 215.4725. 349 
 (c)  "Business operations" means, for purposes specifically 350     
 
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related to Cuba or Syria, engaging in commerce in any fo rm in 351 
Cuba or Syria, including, but not limited to, acquiring, 352 
developing, maintaining, owning, selling, possessing, leasing, 353 
or operating equipment, facilities, personnel, products, 354 
services, personal property, real property, military equipment, 355 
or any other apparatus of business or commerce. 356 
 (d)  "Local governmental entity" means a county, 357 
municipality, special district, or other political subdivision 358 
of the state. 359 
 (2)  A company or other entity is ineligible to, and may 360 
not, bid on, submit a proposal f or, or enter into or renew a 361 
contract with an agency or local governmental entity for goods 362 
or services of: 363 
 (a)  One hundred thousand dollars or more Any amount if, at 364 
the time of bidding on, submitting a proposal for, or entering 365 
into or renewing such co ntract, the company or other entity is 366 
on the Scrutinized Companies or Other Entities that Boycott 367 
Israel List, created pursuant to s. 215.4725, or is engaged in a 368 
boycott of Israel; or 369 
 (b) One million dollars or more if, at the time of bidding 370 
on, submitting a proposal for, or entering into or renewing such 371 
contract, the company or other entity: 372 
 1.  Is on the Scrutinized Companies with Activities in 373 
Sudan List or the Scrutinized Companies with Activities in Iran 374 
Terrorism Sectors List, created pursuant to s. 215.473; or 375     
 
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 2.  Is engaged in business operations in Cuba or Syria. 376 
 (3)(a)  Any contract with an agency or local governmental 377 
entity for goods or services of $1 million or more entered into 378 
or renewed on or after: 379 
 1.  July 1, 2011, through June 30, 2012, must contain a 380 
provision that allows for the termination of such contract at 381 
the option of the awarding body if the company is found to have 382 
submitted a false certification as provided under subsection (5) 383 
or been placed on the Scrutinized Compan ies with Activities in 384 
Sudan List or the Scrutinized Companies with Activities in the 385 
Iran Petroleum Energy Sector List. 386 
 2.  July 1, 2012, through September 30, 2016, must contain 387 
a provision that allows for the termination of such contract at 388 
the option of the awarding body if the company is found to have 389 
submitted a false certification as provided under subsection 390 
(5), been placed on the Scrutinized Companies with Activities in 391 
Sudan List or the Scrutinized Companies with Activities in the 392 
Iran Petroleum Energy Sector List, or been engaged in business 393 
operations in Cuba or Syria. 394 
 3.  October 1, 2016, through June 30, 2018, must contain a 395 
provision that allows for the termination of such contract at 396 
the option of the awarding body if the company: 397 
 a.  Is found to have submitted a false certification as 398 
provided under subsection (5); 399 
 b.  Has been placed on the Scrutinized Companies that 400     
 
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Boycott Israel List, or is engaged in a boycott of Israel; 401 
 c.  Has been placed on the Scrutinized Companies with 402 
Activities in Sudan List or the Scrutinized Companies with 403 
Activities in the Iran Petroleum Energy Sector List; or 404 
 d.  Has been engaged in business operations in Cuba or 405 
Syria. 406 
 4.  July 1, 2018, must contain a provision that allows for 407 
the termination of such c ontract at the option of the awarding 408 
body if the company is found to have submitted a false 409 
certification as provided under subsection (5), been placed on 410 
the Scrutinized Companies with Activities in Sudan List, or been 411 
engaged in business operations in C uba or Syria. 412 
 5.  July 1, 2018, must contain a provision that allows for 413 
the termination of such contract at the option of the awarding 414 
body if the company is found to have submitted a false 415 
certification as provided under subsection (5) or has been 416 
placed on a list created pursuant to s. 215.473, relating to 417 
scrutinized active business operations in Iran. 418 
 (b)  Any contract with an agency or local governmental 419 
entity for goods or services of any amount entered into or 420 
renewed on or after:  421 
 1. July 1, 2018, must contain a provision that allows for 422 
the termination of such contract at the option of the awarding 423 
body if the company is found to have been placed on the 424 
Scrutinized Companies that Boycott Israel List or is engaged in 425     
 
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a boycott of Israel. 426 
 2.  July 1, 2025, must contain a provision that allows for 427 
the termination of such contract at the option of the awarding 428 
body if the company or other entity is found to have been placed 429 
on the Scrutinized Companies or Other Entities that Boycott 430 
Israel List or is engaged in a boycott of Israel. 431 
 (4)  Notwithstanding subsection (2) or subsection (3), an 432 
agency or local governmental entity, on a case -by-case basis, 433 
may allow a company on the Scrutinized Companies with Activities 434 
in Sudan List, the Scru tinized Companies with Activities in the 435 
Iran Petroleum Energy Sector List, or the Scrutinized Companies 436 
with Activities in Iran Terrorism Sectors List, or a company 437 
engaged in business operations in Cuba or Syria, to be eligible 438 
for, bid on, submit a prop osal for, or enter into or renew a 439 
contract for goods or services of $1 million or more, or may 440 
allow a company or other entity on the Scrutinized Companies or 441 
Other Entities that Boycott Israel List to be eligible for, bid 442 
on, submit a proposal for, or en ter into or renew a contract for 443 
goods or services of any amount, under the conditions set forth 444 
in paragraph (a) or the conditions set forth in paragraph (b): 445 
 (a)1.  With respect to a company on the Scrutinized 446 
Companies with Activities in Sudan List, al l of the following 447 
occur: 448 
 a.  The scrutinized business operations were made before 449 
July 1, 2011. 450     
 
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 b.  The scrutinized business operations have not been 451 
expanded or renewed after July 1, 2011. 452 
 c.  The agency or local governmental entity determines that 453 
it is in the best interest of the state or local community to 454 
contract with the company. 455 
 d.  The company has adopted, has publicized, and is 456 
implementing a formal plan to cease scrutinized business 457 
operations and to refrain from engaging in any new scrutini zed 458 
business operations. 459 
 2.  With respect to a company engaged in business 460 
operations in Cuba or Syria, all of the following occur: 461 
 a.  The business operations were made before July 1, 2012. 462 
 b.  The business operations have not been expanded or 463 
renewed after July 1, 2012. 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. 467 
 d.  The company has adopted, has publicized, and is 468 
implementing a formal plan to cea se business operations and to 469 
refrain from engaging in any new business operations. 470 
 3.  With respect to a company or other entity on the 471 
Scrutinized Companies or Other Entities that Boycott Israel 472 
List, all of the following occur: 473 
 a.  The boycott of Isra el was initiated before October 1, 474 
2016. 475     
 
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 b.  The company or other entity certifies in writing that 476 
it has ceased its boycott of Israel. 477 
 c.  The agency or local governmental entity determines that 478 
it is in the best interest of the state or local community to 479 
contract with the company or other entity. 480 
 d.  The company or other entity has adopted, has 481 
publicized, and is implementing a formal plan to cease 482 
scrutinized business operations and to refrain from engaging in 483 
any new scrutinized business operations. 484 
 4.  With respect to a company on the Scrutinized Companies 485 
with Activities in the Iran Petroleum Energy Sector List as of 486 
November 6, 2023, all of the following occur: 487 
 a.  The scrutinized business operations were made before 488 
July 1, 2011. 489 
 b.  The scrutinized business operations have not been 490 
expanded or renewed after July 1, 2011. 491 
 c.  The agency or local governmental entity determines that 492 
it is in the best interest of the state or local community to 493 
contract with the company. 494 
 d.  The company has adopted, has publicized, and is 495 
implementing a formal plan to cease scrutinized business 496 
operations and to refrain from engaging in any new scrutinized 497 
business operations. 498 
 5.  With respect to a company on the Scrutinized Companies 499 
with Activities in Iran Terrorism Sectors List other than those 500     
 
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companies included on the Scrutinized Companies with Activities 501 
in the Iran Petroleum Energy Sector List as of November 6, 2023, 502 
all of the following occur: 503 
 a.  The scrutinized business operations were made before 504 
January 10, 2024. 505 
 b.  The scrutinized business operations have not been 506 
expanded or renewed on or after January 10, 2024. 507 
 c.  The agency or local governmental entity determines that 508 
it is in the best interest of the state or local community to 509 
contract with the company. 510 
 d.  The company has adopted, has publicized, and is 511 
implementing a formal plan to cease those scrutinized business 512 
operations and to refrain from engaging in any new scrutinized 513 
business operations. 514 
 (b)  One of the following occurs: 515 
 1.  The local governmental entity makes a public finding 516 
that, absent such an exemption, the local governmental entity 517 
would be unable to obtain the goods or services for which the 518 
contract is offered. 519 
 2.  For a contract with an executive agency, the Governo r 520 
makes a public finding that, absent such an exemption, the 521 
agency would be unable to obtain the goods or services for which 522 
the contract is offered. 523 
 3.  For a contract with an office of a state constitutional 524 
officer other than the Governor, the state c onstitutional 525     
 
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officer makes a public finding that, absent such an exemption, 526 
the office would be unable to obtain the goods or services for 527 
which the contract is offered. 528 
 (5)  At the time a company submits a bid or proposal for a 529 
contract or before the co mpany enters into or renews a contract 530 
with an agency or local governmental entity for goods or 531 
services of $1 million or more, the company must certify that 532 
the company is not on the Scrutinized Companies with Activities 533 
in Sudan List or the Scrutinized C ompanies with Activities in 534 
Iran Terrorism Sectors List and that it does not have business 535 
operations in Cuba or Syria. At the time a company or other 536 
entity submits a bid or proposal for a contract or before the 537 
company or other entity enters into or renews a contract with an 538 
agency or local governmental entity for goods or services of any 539 
amount, the company or other entity must certify that the 540 
company or other entity is not participating in a boycott of 541 
Israel. 542 
 (a)  If, after the agency or the local go vernmental entity 543 
determines, using credible information available to the public, 544 
that the company or other entity has submitted a false 545 
certification, the agency or local governmental entity shall 546 
provide the company or other entity with written notice of its 547 
determination. The company or other entity shall have 90 days 548 
following receipt of the notice to respond in writing and to 549 
demonstrate that the determination of false certification was 550     
 
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made in error. If the company or other entity does not make such 551 
demonstration within 90 days after receipt of the notice, the 552 
agency or the local governmental entity shall bring a civil 553 
action against the company or other entity. If a civil action is 554 
brought and the court determines that the company or other 555 
entity submitted a false certification, the company or other 556 
entity shall pay the penalty described in subparagraph 1. and 557 
all reasonable attorney fees and costs, including any costs for 558 
investigations that led to the finding of false certification. 559 
 1.  A civil penalty equal to the greater of $2 million or 560 
twice the amount of the contract for which the false 561 
certification was submitted shall be imposed. 562 
 2.  The company or other entity is ineligible to bid on any 563 
contract with an agency or local governmental entity f or 3 years 564 
after the date the agency or local governmental entity 565 
determined that the company or other entity submitted a false 566 
certification. 567 
 (b)  A civil action to collect the penalties described in 568 
paragraph (a) must commence within 3 years after the d ate the 569 
false certification is submitted. 570 
 (6)  Only the agency or local governmental entity that is a 571 
party to the contract may cause a civil action to be brought 572 
under this section. This section does not create or authorize a 573 
private right of action or e nforcement of the penalties provided 574 
in this section. An unsuccessful bidder, or any other person 575     
 
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other than the agency or local governmental entity, may not 576 
protest the award of a contract or contract renewal on the basis 577 
of a false certification. 578 
 (7)  This section preempts any ordinance or rule of any 579 
agency or local governmental entity involving public contracts 580 
for goods or services of: 581 
 (a)  One million dollars or more with a company or other 582 
entity engaged in scrutinized business operations. 583 
 (b)  One hundred thousand dollars or more Any amount with a 584 
company or other entity that has been placed on the Scrutinized 585 
Companies or Other Entities that Boycott Israel List or is 586 
engaged in a boycott of Israel. 587 
 (8)  The contracting prohibitions in this secti on 588 
applicable to companies on the Scrutinized Companies with 589 
Activities in Sudan List or the Scrutinized Companies with 590 
Activities in Iran Terrorism Sectors List or to companies 591 
engaged in business operations in Cuba or Syria become 592 
inoperative on the date that federal law ceases to authorize the 593 
states to adopt and enforce such contracting prohibitions. 594 
 Section 4. This act shall take effect July 1, 2025. 595