STORAGE NAME: h1519b.SAC
DATE: 3/31/2025
1
FLORIDA HOUSE OF REPRESENTATIVES
BILL ANALYSIS
This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: CS/HB 1519
TITLE: Entities that Boycott Israel
SPONSOR(S): Cassel
COMPANION BILL: CS/SB 1678 (Leek)
LINKED BILLS: None
RELATED BILLS: None
Committee References
Government Operations
16 Y, 0 N, As CS
State Affairs
SUMMARY
Effect of the Bill:
The bill expands Florida’s public investment and contracting prohibitions on entities that boycott Israel to include
educational institutions, nonprofits, government entities, and academic boycotts. The bill also requires universities
in the State University System to follow the same divestment and investment restrictions as the State Board of
Administration with respect to companies and other entities that boycott Israel. Additionally, it imposes new
compliance requirements for arts and cultural grants, with penalties and prohibitions for applicants who engage in
boycotts or antisemitic discrimination.
Fiscal or Economic Impact:
The bill may have an indeterminate negative fiscal impact on the state and local governments due to its public
investment and contracting requirements, as well as new compliance and enforcement provisions for arts and
cultural grants.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
ANALYSIS
EFFECT OF THE BILL:
The bill expands Florida’s public investment and contracting prohibitions on entities that boycott Israel to include
not only companies that boycott Israel, but also educational institutions, nonprofits, executive branch agencies,
local governments, and foreign governments. Actions that are deemed to boycott Israel for purposes of the
investment and contracting prohibition now include academic boycotts where educational institutions enact
restrictive policies or take actions that limit academic relationships based on ties to Israel or hold students and
faculty collectively liable for alleged actions of the Israeli government. An educational institution is deemed to
engage in an academic boycott of Israel if any of its departments, or in the case of foreign institutions, faculty
unions, participate in such a boycott. Under current law companies are subject to the investment and contracting
prohibitions in law; however, the bill narrows the definition of “company” by excluding natural persons and sole
proprietorships and specifying that only business entities with more than 10 full-time employees qualify under
these provisions. (Section 1)
The bill requires the State Board of Administration (SBA) to determine which “other entities” boycott Israel and, if
necessary, place them on the Scrutinized Companies or Other Entities that Boycott Israel List (Boycott Israel List).
The bill defines “other entity” to mean an educational institution, a nonprofit organization, an agency, a local
government, including any of its public investment funds, public pension funds, sovereign wealth funds, or other
government-sponsored investment funds. (Section 1)
The bill prohibits the SBA and specified State University System (SUS) funds from acquiring or holding the debt of a
foreign government or a foreign government controlled sovereign wealth fund if such government or fund is on the
Boycott Israel List. The bill requires SUS university endowment and retirement funds to follow the same
divestment and investment restrictions as the SBA with respect to companies and other entities on the Boycott
Israel List. (Section 1) JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
2
The bill modifies state and local government contracting and procurement restrictions by prohibiting contracts of
$100,000 or more with companies or other entities engaged in a boycott of Israel. Contracts entered into or
renewed on or after July 1, 2025, must contain a provision allowing for termination if a company or other entity is
found to be engaged in such a boycott. (Section 3)
The bill revises Florida’s arts and cultural grants process by adding new compliance and enforcement measures
related to anti-boycott and antisemitism laws. Under the new provisions, grant applicants must certify that they
comply with all relevant anti-discrimination laws, including the state’s anti-boycott of Israel statutes. Grant
applicants must attest that they will not engage in antisemitic discrimination, including refusing to deal with
another individual or entity based on their real or perceived connection to the State of Israel, or engage in
antisemitic speech in conjunction with the program or project for which the grant is awarded. The bill grants
individuals the right to file a complaint with the Attorney General (AG) if a violation occurs and the AG has not
already acted within 90 days. The AG must respond to the complaint within 30 days. (Section 2)
Any grant applicant found to have engaged in a boycott of Israel, antisemitic discrimination, or antisemitic speech
will be disqualified from eligibility for 10 years. If a grant recipient is found to have engaged in any of those
activities during the duration of a funded project, he or she will be required to pay a penalty equal to three times
the amount of the grant to the State Treasury. (Section 2)
The effective date of the bill is July 1, 2025. (Section 4)
FISCAL OR ECONOMIC IMPACT:
STATE GOVERNMENT:
The SBA will likely incur increased costs related to its expanded responsibilities to identify, monitor, and notify
other entities placed on the Boycott Israel List. Additionally, the Department of State and AG may experience
administrative costs relating to their responsibilities in reviewing, processing, or enforcing arts and cultural grants
under the bill. However, these costs can likely be absorbed within existing resources.
LOCAL GOVERNMENT:
The bill may result in an indeterminate negative fiscal impact on local governments by prohibiting contracts of
$100,000 or more with entities engaged in a boycott of Israel. This could result in higher prices for commodities or
services if competitive bidders are disqualified. The fiscal impact is indeterminate at this time as it depends on the
number and value of contracts that would have been awarded absent this restriction.
RELEVANT INFORMATION
SUBJECT OVERVIEW:
Antisemitism
In 2024, the Legislature adopted a definition of “antisemitism” that closely aligns with the working definition
established by the International Holocaust Remembrance Alliance.
1 This definition was implemented to enhance
the monitoring and reporting of antisemitic hate crimes and discrimination while also raising public awareness
and combating such incidents. However, the law explicitly states that it cannot be interpreted in a way that
diminishes or infringes upon First Amendment rights or conflicts with federal or state antidiscrimination laws.
Current law provides that “antisemitism” is a particular perception of Jewish individuals that can manifest as
hatred toward them. Both rhetorical and physical expressions of antisemitism target Jewish and non-Jewish
individuals, their property, and Jewish community institutions, including religious facilities. Examples of
antisemitic behavior include:
Advocating for or justifying harm against Jewish individuals.
Spreading dehumanizing or stereotypical myths about Jewish people (e.g., allegations of global Jewish
conspiracies or control over media, government, and financial institutions).
1
Ch. 2024-262, L.O.F., codified in s. 1.015, F.S. JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
3
Falsely attributing collective blame to Jewish people for real or imagined offenses.
Denying or distorting the Holocaust.
Accusing Israel or Jewish people of having fabricated or exaggerated the Holocaust.
Claiming that Jewish individuals are more loyal to Israel than their home countries.
Denying Jewish people the right to self-determination by characterizing Israel as a racist endeavor.
Applying unfair double standards to Israel.
Using classic antisemitic imagery to depict Israel or Israelis.
Comparing Israeli policies to those of the Nazis.
Holding Jewish individuals collectively accountable for Israel’s actions.
2
State Board of Administration
The State Board of Administration (SBA) is established in the State Constitution and serves as the state’s
investment arm.
3 The SBA is governed by the Governor, the Attorney General, and the Chief Financial Officer,
sitting as its Board of Trustees, with the Governor serving as chair. The SBA is responsible for investing the assets
of the Florida Retirement System (FRS) Pension Plan
4 and administering the FRS Investment Plan,
5 which
combined represent approximately $220.1 billion, or approximately 81.4 percent, of the $270.4 billion in assets
managed by the SBA.
6 The SBA also manages over 25 other investment portfolios, with combined assets of
approximately $50.3 billion, including the Florida Hurricane Catastrophe Fund, the Florida Lottery Fund, the
Florida Prepaid College Plan, and various debt-service accounts for state bond issues.
Investment decisions for the pension plan are made by fiduciaries hired by the state. Under Florida law, an SBA
fiduciary charged with an investment decision must act as a prudent expert would under similar circumstances,
considering all relevant substantive factors. Investment decisions must be based exclusively on pecuniary factors,
meaning only material effects on investment risk or returns may be considered. Nonpecuniary interests, such as
social, political, or ideological objectives, cannot influence investment decisions.
7 A nine-member Investment
Advisory Council provides recommendations to the SBA on investment policy, strategy, and procedures and serves
as a resource to the Board of Trustees.
8
The Legislature has established statutory exceptions to SBA’s fiduciary standards, allowing the SBA to make
investment decisions without regard to pecuniary factors in cases involving companies with certain business
operations in Cuba, Syria, Venezuela, Sudan, Iran, or companies that are majority owned by China or that engage in
an economic boycott against Israel.
9 These exceptions enable divestment from these “scrutinized companies,” a
category that not only includes the company itself but also parent companies, majority-owned subsidiaries, and
wholly-owned subsidiaries engaged in the specified activities.
10
Companies that Boycott Israel
In 2016, the Legislature prohibited the SBA from investing in companies that engage in a boycott against Israel,
11
and in 2023, required the SBA to divest from such companies.
12 The law defines a boycott of Israel as actions taken
to limit commercial relations with Israel or businesses operating in Israeli-controlled territories in a
discriminatory manner.
13 This includes adverse financial actions intended to harm Israel, as well as trade practices
prohibited under federal law.
2
See s. 1.015(3), F.S.
3
Art. IV, s. 4(e), FLA. CONST.
4
S. 121.151, F.S.
5
S. 121.4501(8), F.S.; see also, r. 19-13.001, F.A.C.
6
SBA, Performance Report Month Ending: December 31, 2024 (last visited March 19, 2025).
7
S. 215.47(10), F.S.
8
S. 215.444(1), F.S.
9
S. 215.47(10)(b), F.S.
10
See ss. 215.471, 215.4725, 215.473, and 215.4735, F.S.
11
Ch. 2016-36, L.O.F.
12
Ch. 2023-111, L.O.F.
13
See s. 215.4725(1)(a), F.S. JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
4
To enforce this requirement, the SBA must identify and compile a list of scrutinized companies engaged in such
boycotts. This list must be updated quarterly based on information from nonprofit organizations, research firms,
government entities, and asset managers. Companies identified as boycotting Israel receive written notice giving
them 90 days to cease their boycott activities. If they fail to do so, the SBA must divest from all securities of those
companies within 12 months and is prohibited from acquiring additional securities of those companies.
14
The law includes exceptions for indirect holdings in commingled funds or exchange-traded funds, though the SBA
must request that fund managers remove scrutinized companies or offer alternative investment options.
15 The SBA
must report quarterly to the Board of Trustees, the Legislature, and the public, detailing engagement efforts,
divestments, and compliance actions.
16
Florida’s Arts and Cultural Grants
The Department of State (DOS) oversees arts and cultural grants through its Division of Historical Resources,
Division of Arts and Culture, and Division of Library and Information Services.
17 The Secretary of State, as the head
of these divisions, is designated as Florida’s Chief Arts and Culture Officer and is encouraged to establish
relationships with foreign governmental officials to promote Florida as a center of American creativity.
18
The Division of Arts and Culture supports artistic and cultural activities that enhance the quality of life for
Floridians. It administers grants for various programs, including arts education, local arts agencies, museums,
theater, dance, folk art, literature, media arts, music, and visual arts. The division is responsible for adopting rules
governing the grant review process, including criteria related to artistic quality, public benefit, fiscal stability, and
nondiscrimination compliance. The Florida Arts and Cultural Act provides state support for Florida artists, arts
organizations, and museums, with the Division of Arts and Culture responsible for overseeing related programs
and adopting rules to administer funding. The Florida Council on Arts and Culture evaluates grant applications and
submits recommendations for funding.
19
To qualify for state arts and culture grants, applicants must meet specific eligibility criteria established by the
Division of Arts and Culture. Eligible applicants include public entities and Florida-based nonprofits. Applicants
must demonstrate at least one year of experience in arts and cultural programing, register as vendors with the
Department of Financial Services, and comply with state and federal laws.
Government Contracting and Procurement
Current law requires a competitive solicitation
20 process when state agencies wish to procure commodities or
contractual services that cost more than $35,000.
21 Depending on the type of contract and scope of work or goods
sought, an agency may use one of three procurement methods:
Invitation to bid (ITB): An agency must use an ITB when the agency is capable of specifically defining the
scope of work for which a contractual service is required or when the agency is capable of establishing
precise specifications defining the actual commodity or group of commodities required.
22
14
S. 215.4725(2) and (3), F.S.
15
See s. 215.4725(3)(d), F.S.
16
S. 215.4725(4), F.S.
17
See ch. 265, F.S.
18
S. 15.18, F.S.
19
Ss. 265.285 and 265.286, F.S.; see also DOS, Florida Division of Arts & Culture (last visited March 19, 2025).
20
A “competitive solicitation” is the process of requesting and receiving two or more sealed bids, proposals, or replies
submitted by responsive vendors in accordance with the terms of a competitive process, regardless of the method of
procurement. S. 287.012(6), F.S.
21
Ss. 287.057 and 287.017, F.S.
22
S. 287.057(1)(a), F.S. JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
5
Request for proposals (RFP): An agency must use an RFP when the purposes and uses for which the
commodity, group of commodities, or contractual service being sought can be specifically defined and the
agency is capable of identifying necessary deliverables.
23
Invitation to negotiate (ITN): An ITN is a solicitation used by an agency that is intended to determine the
best method for achieving a specific goal or solving a particular problem and identifies one or more
responsive vendors with which the agency may negotiate in order to receive the best value.
24
The Department of Management Services (DMS) is statutorily designated as the primary state agency overseeing
procurement
25 and its responsibilities include creating uniform agency procurement rules,
26 implementing the
online procurement program,
27 and procuring state term contracts.
28 DMS is also responsible for registering
vendors that wish to provide goods or services to the state
29 and maintaining lists of vendors who may not submit
bids, proposals, or replies to agency solicitations.
30
Contracting with Companies Engaged in a Boycott of Israel
Current law prohibits state and local government entities from contracting with companies that engage in a
boycott of Israel.
31 A company is ineligible to bid on, submit a proposal for, or enter into contracts of any amount if
it is on the Boycott Israel List or is otherwise determined to be engaged in a boycott of Israel. Contracts entered
into or renewed on or after July 1, 2018, must contain a provision allowing for termination if a company is found to
be engaged in such a boycott.
32
Companies seeking government contracts must certify compliance with these requirements. If a company falsely
certifies compliance, the contracting agency may bring a civil action, which can result in a penalty of $2 million or
twice the contract amount, whichever is greater. Companies that submit false certifications are also barred from
bidding on contracts for three years.
33
State University System
The State University System (SUS) of Florida consists of 12 public universities,
34 each governed by a board of
trustees.
35 The Board of Governors (BOG) is responsible for overseeing, regulating, and managing the entire SUS.
36
Through its authority, the BOG ensures affordable access to higher education, promotes articulation with other
educational institutions, and upholds fiscal responsibility and accountability across Florida’s public universities.
37
The BOG consists of 17 members, 14 of which are citizens appointed by the Governor, subject to Senate
confirmation.
38 The commissioner of education, the chair of the advisory council of faculty senates, and the
president of the Florida student association are also members.
39
SUS universities manage various endowment funds to support academic and institutional initiatives. These funds
are typically invested to generate returns that finance scholarships, fellowships, research, professorships, and
other educational purposes.
40
23
S. 287.057(1)(b), F.S.
24
S. 287.057(1)(c), F.S.
25
See ss. 287.032 and 287.042, F.S.
26
See ss. 287.032(2) and 287.042(3), (4), and (12), F.S.
27
See s. 287.057(24), F.S.
28
See ss. 287.042(2) and 287.056, F.S.
29
See ss. 287.032 and 287.042, F.S.; see also DMS, Vendor Registration and Vendor Lists (last visited March 19, 2025).
30
Ss 287.1351, 287.133, 287.134, and 287.137, F.S.
31
S. 287.135(2)(a), F.S.
32
S. 287.135(3)(b), F.S.
33
S. 287.135(5), F.S.
34
S. 1000.21(9), F.S.; see also State University System, Universities (last visited Feb. 26, 2025).
35
Art. IX, s. 7(b), FLA. CONST.; s. 1001.71, F.S.
36
See art. IX, s. 7(d), FLA. CONST.
37
S. 20.155(4)(b), F.S.
38
Art. IX, s. 7(d), FLA. CONST.; see also s. 1001.70, F.S.
39
Art. IX, s. 7(d), FLA. CONST.
40
See Florida State University College of Fine Arts, Legacy Giving (last visited March 25, 2025); University of Florida College of
Education, Alumni and Giving (last visited March 25, 2025). JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
6
For purposes of retirement, employees of the SUS participate in either the FRS or the State University System
Optional Retirement Program (SUSORP), depending on their position and eligibility.
41 The SUSORP is a defined
contribution plan managed through contracts with private investment providers selected by DMS.
42 SUS
universities also offer voluntary, tax-advantaged savings plans that can be useful for supplementing core
retirement benefits, such as 403(b) savings plans and the Florida Deferred Compensation Plan.
43 These plans allow
employees to invest a portion of their salary through certain investment providers.
RECENT LEGISLATION:
YEAR BILL # HOUSE SPONSOR(S) SENATE SPONSOR OTHER INFORMATION
2024 HB 187 Gottlieb, Fine Berman The bill became law on July 1,
2024.
2023 CS/CS/SB 110 Stevenson Hooper The bill became law on May
24, 2025.
BILL HISTORY
COMMITTEE REFERENCE ACTION DATE
STAFF
DIRECTOR/
POLICY CHIEF
ANALYSIS
PREPARED BY
Government Operations
Subcommittee
16 Y, 0 N, As CS 3/25/2025 Toliver Villa
THE CHANGES ADOPTED BY THE
COMMITTEE:
Removed a requirement that the SBA determine the scrutinized entities
with which the state has contracts or grant agreements.
Removed a requirement that the SBA divest from scrutinized entities
until those entities make up 0.5 percent of the fund.
Prohibited the SBA and SUS endowment and retirement funds from
holding debt of foreign governments on the Boycott Israel list.
Subjected SUS endowment and retirement funds to the same
divestment requirements as the SBA with respect to the Boycott Israel
List.
Removed a requirement banning certain contracts with foreign schools
engaged in an Israel boycott, including study abroad tuition payments.
State Affairs Committee Williamson Villa
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THIS BILL ANALYSIS HAS BEEN UPDATED TO INCORPORATE ALL OF THE CHANGES DESCRIBED ABOVE.
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41
Ss. 121.051(1) and 121.35(1) and (2), F.S.
42
S. 121.35(6), F.S.; see also DMS, State University System Optional Retirement Program (last visited March 25, 2025).
43
See Florida State University, Voluntary Retirement Plans (last visited March 26, 2015); University of South Florida, Voluntary
Retirement Plans (last visited March 26, 2025); University of Central Florida, Retirement Benefits (last visited March 26, 2025);
Florida International University, Benefits (last visited March 26, 2025); University of North Florida, Retirement Options (last
visited March 26, 2025).