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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.; 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 Department 14
of Management Services to work with the public fund 15
for a specified purpose; requiring the Department of 16
Management Services to provide specified notice to 17
certain companies; requiring the public fund to file a 18
certain report with each member of the Board of 19
Trustees of the State Board of Administration and with 20
the Legislature which includes such list; requirin g 21
the public fund to file a certain report with a 22
summary of correspondence between other entities and 23
the public fund; requiring that specified actions be 24
adopted and incorporated into a certain statement; 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
amending s. 265.286, F.S.; requiring applicants t o 26
sign a certification form attesting that they are 27
complying with specified antidiscrimination laws and 28
will not engage in antisemitic discrimination or 29
antisemitic speech in conjunction with the program or 30
project for which their grant is awarded ; 31
disqualifying for a specified timeframe grant 32
applicants that engage in boycotts, antisemitic 33
discrimination, or antisemitic speech; requiring 34
recipients found to have engaged in boycotts or 35
antisemitic discrimination in violation of their 36
certification to pay a specified penalty; authorizing 37
individuals to file a written complaint to the 38
Attorney General for not pursuing a cause of action 39
within a specified timeframe; requiring the Attorney 40
General to provide a written response within a 41
specified timeframe; amen ding s. 287.135, F.S.; 42
revising the definition of the term "awarding body"; 43
revising the contract values that prohibit a company 44
or other entity from being eligible to bid on, submit 45
a proposal for, or enter into or renew a contract with 46
an agency or local governmental entity; requiring 47
agencies and local governmental entities that enter 48
into or renew a contract to include a specific 49
termination provision; authorizing agencies and local 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
governmental entities to bid on, submit a proposal 51
for, or enter into o r renew a contract for goods and 52
services with other entities that boycott Israel under 53
specified circumstances; requiring other entities to 54
submit a certain certification at the same time as 55
they submit a bid or proposal or enter into or renew a 56
contract with an agency or local governmental entity; 57
authorizing civil actions against companies and other 58
entities under specified conditions; providing an 59
effective date. 60
61
Be It Enacted by the Legislature of the State of Florida: 62
63
Section 1. Section 215. 4725, Florida Statutes, is amended 64
to read: 65
215.4725 Prohibited investments by the State Board of 66
Administration; companies and other entities that boycott 67
Israel.— 68
(1) DEFINITIONS.—As used in this section, the term: 69
(a) "Agency" means any of the var ious state officers, 70
departments, boards, commissions, divisions, bureaus, and 71
councils and any other unit of organization, however designated, 72
of the executive branch of state government. 73
(b) "Boycott Israel" or "boycott of Israel" means refusing 74
to deal, terminating business activities, or taking other 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
actions to limit commercial relations with Israel, or persons or 76
entities doing business in Israel or in Israeli -controlled 77
territories, in a discriminatory manner. A statement by a 78
company, an educational institution, a nonprofit organization, 79
an agency, a local governmental entity or unit thereof, or a 80
foreign government that it is participating in a boycott of 81
Israel, or that it has initiated a boycott in response to a 82
request for a boycott of Israel or in compliance with, or in 83
furtherance of, calls for a boycott of Israel, may be considered 84
by the State Board of Administration to be evidence that a 85
company or other entity is participating in a boycott of Israel. 86
The term includes taking adverse action, including changes to 87
published commercial financial ratings, risk ratings, and 88
controversy ratings based on nonpecuniary factors, to inflict 89
economic harm on Israel or persons or entities doing business in 90
Israel or in Israeli -controlled territories. The term includes 91
trade practices that are prohibited by federal regulations 92
issued in compliance with 50 U.S.C. s. 4842 and does not include 93
trade practices that are preempted by federal law. The term also 94
includes an academic boycott of Israel in which an ed ucational 95
institution enacts or implements restrictive policies, or 96
otherwise participates in activities having the object or effect 97
of restricting ongoing or potential academic relationships, on 98
the basis of ties to the State of Israel or its academic, 99
educational, or research institutions, or by holding 100
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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
researchers, students, prospective students, guest lecturers, 101
and artists-in-residence or institutions collectively liable for 102
any alleged objectionable conduct by the State of Israel. An 103
educational institution is deemed to have engaged in an academic 104
boycott of Israel if any of its departments, centers, or other 105
organs engages in a boycott or, in the case of a foreign 106
educational institution, if any faculty union recognized by that 107
institution engages in a boycott. 108
(c)(b) "Company" means an a sole proprietorship, 109
organization, an association, a corporation, a partnership, a 110
joint venture, a limited partnership, a limited liability 111
partnership, a limited liability company, or other entity or 112
business association, including all wholly owned subsidiaries, 113
majority-owned subsidiaries, and parent companies, or 114
affiliates, having more than 10 full -time employees. The term 115
does not include a natural person or a sole proprietorship that 116
exists for the purpose of making profit. 117
(d)(c) "Direct holdings" in a company means all securities 118
of that company that are held directly by the public fund or in 119
an account or fund in which the public fund owns all shares or 120
interests. 121
(e)(d) "Indirect holdings" in a company means all 122
securities of that company that are held in a commingled fund or 123
other collective investment, such as a mutual or index fund, in 124
which the public fund owns shares or interests, together with 125
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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
other investors not subject to this section or which are held in 126
an index fund. 127
(f) "Local governmental entity" means a county, 128
municipality, special district, or other political subdivision. 129
(g) "Other entity" means an educational institution, a 130
nonprofit organization, a n agency, a local governmental entity 131
or unit thereof, or a foreign government, including any of its 132
public investment funds, public pension funds, sovereign wealth 133
funds, or other government -sponsored investment funds. 134
(h)(e) "Public fund" means all fun ds, assets, trustees 135
trustee, and other designates under the State Board of 136
Administration pursuant to part I of chapter 121. 137
(i)(f) "Scrutinized companies or other entities" means 138
companies or other entities that boycott Israel or engage in a 139
boycott of Israel. 140
(2) IDENTIFICATION OF COMPANIES OR OTHER ENTITIES.— 141
(a) The public fund shall make its best efforts to 142
identify all scrutinized companies or other entities in which 143
the public fund has direct or indirect holdings or could 144
possibly have such holdings in the future. Such efforts include: 145
1. To the extent that the public fund finds it 146
appropriate, reviewing and relying on publicly available 147
information regarding companies or other entities that boycott 148
Israel, including information provided by nonprofit 149
organizations, research firms, international organizations, and 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
government entities; 151
2. Contacting asset managers contracted by the public fund 152
for information regarding companies or other entities that 153
boycott Israel; or 154
3. Contacting other institutional investors that prohibit 155
such investments or that have engaged with companies or other 156
entities that boycott Israel. 157
(b) By the first meeting of the publi c fund following the 158
identification of scrutinized companies in accordance with 159
paragraph (a), the public fund shall compile and make available 160
the "Scrutinized Companies or Other Entities that Boycott Israel 161
List." 162
(c) The public fund shall update and m ake publicly 163
available quarterly the Scrutinized Companies or Other Entities 164
that Boycott Israel List based on evolving information from, 165
among other sources, those listed in paragraph (a). 166
(3) REQUIRED ACTIONS. —The public fund shall adhere to the 167
following procedures for assembling companies or other entities 168
on the Scrutinized Companies or Other Entities that Boycott 169
Israel List. 170
(a) Engagement.— 171
1. The public fund shall immediately determine the 172
companies or other entities on the Scrutinized Compan ies or 173
Other Entities that Boycott Israel List in which the public fund 174
owns direct or indirect holdings. The Department of Management 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
Services shall work with the public fund to determine the 176
companies or other entities with which the state currently 177
contracts or has a grant agreement, as detailed under ss. 178
287.135 and 265.286, respectively. 179
2. For each company or other entity newly identified under 180
this paragraph, the public fund shall send a written notice 181
informing the company or other entity of its scrutinized company 182
status and that it may become subject to investment prohibition 183
or divestment by the public fund. The Department of Management 184
Services shall also notify each company or other entity newly 185
identified under this paragraph that it may be barred from 186
future contracts or grants awarded by the state . The notices 187
notice must inform the company or other entity of the 188
opportunity to clarify its activities regarding the boycott of 189
Israel and encourage the company or other entity to cease the 190
boycott of Israel within 90 days in order to avoid qualifying 191
for investment prohibition or divestment. 192
3. If, within 90 days after the public fund's first 193
engagement with a company or other entity pursuant to this 194
paragraph, the company or other entity ceases a boycott of 195
Israel, the company or other entity shall be removed from the 196
Scrutinized Companies or Other Entities that Boycott Israel 197
List, and the provisions of this section ceases shall cease to 198
apply to that company or other entity unless that company or 199
other entity resumes a boycott of Israel. 200
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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
(b) Divestment.— 201
1. If, after 90 days following the public fund's first 202
engagement with a company or other entity pursuant to paragraph 203
(a), the company or other entity continues to boycott Israel , 204
the public fund must sell, redeem, divest, or withdraw all 205
publicly traded securities of the company or other entity from 206
the public fund within 12 months after the company's or other 207
entity's most recent appearance on the Scrutinized Companies or 208
Other Entities that Boycott Israel List. 209
2. If a company or other entity that ceased a boycott of 210
Israel following engagement pursuant to paragraph (a) resumes 211
such activities, this paragraph immediately applies, and the 212
public fund must send a written notice to the company or other 213
entity. The company or other entity must also be immediately 214
reintroduced onto the Scrutinized Companies or Other Entities 215
that Boycott Israel List, as applicable. 216
(c) Prohibition.—The public fund is prohibited from 217
acquiring securities of companies or other entities on the 218
Scrutinized Companies or Other Entities that Boycott Israel 219
List, except as provided in paragraph (d) and subsection (6). 220
The public fund and the endowments and retirement funds of the 221
State University System ma y not acquire or hold the debt of a 222
foreign government that is on the Scrutinized Companies or Other 223
Entities that Boycott Israel List, or of a foreign government 224
with a sovereign wealth fund that is on the Scrutinized 225
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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
Companies or Other Entities that Boyc ott Israel List, when the 226
foreign government has authority to actively control or manage 227
the fund. 228
(d) Excluded securities. —Notwithstanding this section, 229
paragraphs (b) and (c) do not apply to: 230
1. Indirect holdings. However, the public fund shall 231
submit letters to the managers of such investment funds 232
containing companies that boycott Israel requesting that they 233
consider removing such companies from the fund or create a 234
similar fund having indirect holdings devoid of such companies. 235
If the manager creates a similar fund, the public fund shall 236
replace all applicable investments with investments in the 237
similar fund in an expedited timeframe consistent with prudent 238
investing standards. For the purposes of this section, an 239
alternative investment, as the term is defined in s. 215.4401, 240
and securities that are not publicly traded are deemed to be 241
indirect holdings. 242
2. Exchange-traded funds. 243
(4) REPORTING.— 244
(a) The public fund shall file a report with each member 245
of the Board of Trustees of the State Board of Administration, 246
the President of the Senate, and the Speaker of the House of 247
Representatives which includes the Scrutinized Companies or 248
Other Entities that Boycott Israel List within 30 days after the 249
list is created. This report shall be made av ailable to the 250
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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
public. 251
(b) At each quarterly meeting of the Board of Trustees 252
thereafter, the public fund shall file a report, which shall be 253
made available to the public and to each member of the Board of 254
Trustees of the State Board of Administration, t he President of 255
the Senate, and the Speaker of the House of Representatives, 256
which includes: 257
1. A summary of correspondence with companies or other 258
entities engaged by the public fund under subsection (3); 259
2. All investments sold, redeemed, divested, o r withdrawn 260
in compliance with paragraph (3)(b); 261
3. All prohibited investments under paragraph (3)(c); 262
4. Any progress made under paragraph (3)(d); and 263
5. A list of all publicly traded securities held directly 264
by the public fund. 265
(5) INVESTMENT POLICY STATEMENT OBLIGATIONS. —The public 266
fund's actions taken in compliance with this section, including 267
all good faith determinations regarding companies or other 268
entities as required by this act, shall be adopted and 269
incorporated into the public fund's inve stment policy statement 270
as provided in s. 215.475. 271
(6) INVESTMENT AND REINVESTMENT IN CERTAIN SCRUTINIZED 272
COMPANIES OR OTHER ENTITIES.—Notwithstanding any other provision 273
of this section, the public fund may invest in, cease divestment 274
from, or reinvest in certain scrutinized companies or other 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
entities if clear and convincing evidence shows that the value 276
of all assets under management by the public fund becomes equal 277
to or less than 99.50 percent, or 50 basis points, of the 278
hypothetical value of all ass ets under management by the public 279
fund, assuming no investment prohibition or divestment for any 280
company or other entity had occurred under subsection (3). 281
Cessation of the investment prohibition or the divestment, or 282
reinvestment or any new investment, i n a scrutinized company or 283
other entity is limited to the minimum steps necessary to avoid 284
the contingency described in this subsection. For any cessation 285
of the investment prohibition or divestment, or reinvestment or 286
new investment authorized by this sub section, the public fund 287
shall provide a written report to each member of the Board of 288
Trustees of the State Board of Administration, the President of 289
the Senate, and the Speaker of the House of Representatives in 290
advance of the cessation of investment pro hibition or the 291
divestment, or reinvestment or new investment, updated 292
semiannually thereafter as applicable, setting forth the reasons 293
and justification, supported by clear and convincing evidence, 294
for its decisions to cease the investment prohibition or 295
divestment, or to reinvest in scrutinized companies or other 296
entities. 297
(7) STATE UNIVERSITY SYSTEM COMPLIANCE. —The endowment and 298
retirement funds of the universities of the State University 299
System are required to comply with the divestment requirement 300
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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
and prohibition of acquiring securities of companies or other 301
entities on the Scrutinized Companies or Other Entities that 302
Boycott Israel List. The endowment and retirement funds of the 303
universities of the State University System are provided the 304
same exemptions as provided in paragraph (3)(d). 305
Section 2. Paragraph (c) of subsection (6) of section 306
265.286, Florida Statutes, is amended, and paragraphs (d) and 307
(e) are added to that subsection, to read: 308
265.286 Art and cultural grants. — 309
(6) The division shall adopt rules establishing: 310
(c) The panel review process, including, but not limited 311
to, criteria for reviewing grant applications to ensure 312
compliance with applicable federal and state law, including 313
those related to discrimination and conflicts o f interest. For 314
the purposes of satisfying the nondiscrimination requirements of 315
this section, each applicant must sign a certification form 316
attesting to the fact that the applicant is complying with all 317
relevant antidiscrimination laws, including the anti -boycott 318
rules of this state pursuant to ss. 215.4725 and 287.135, and 319
will not engage in antisemitic discrimination as defined in s. 320
1.015, including refusals to deal based on an individual's or 321
entity's real or perceived connection to the State of Israel , or 322
engage in antisemitic speech as defined by s. 1.015, in 323
conjunction with the program or project for which the grant is 324
awarded. The division may not award any new grant that will, in 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
whole or in part, inure to the personal benefit of any council 326
or review panel member during the member's term of office if the 327
council or panel member participated in the vote of the council 328
or panel recommending the award. This paragraph does not 329
prohibit the division from awarding a grant to an entity with 330
which a council or panel member is associated. 331
(d) A grant applicant found to be engaging in any boycott 332
action, antisemitic discrimination, or antisemitic speech in 333
conjunction with the program or project for which the grant is 334
awarded shall be disqualified from gra nt eligibility until 10 335
years after any such action has ceased. A grant recipient found 336
to have engaged in a boycott of Israel or antisemitic 337
discrimination during the duration of the project or program for 338
which the grant was awarded shall be subject to a penalty 339
payable to the State Treasury of three times the amount of the 340
grant received for which the false certification was submitted. 341
(e) If the Attorney General fails to pursue a cause of 342
action within 90 days after a violation of paragraph (c), 343
individuals have the right to file a written complaint to the 344
Attorney General, who in turn will be required to provide a 345
written response within 30 days after receipt of the complaint. 346
Section 3. Section 287.135, Florida Statutes, is amended 347
to read: 348
287.135 Prohibition against contracting with scrutinized 349
companies or entities.— 350
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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
(1) In addition to the terms defined in ss. 287.012 and 351
215.473, as used in this section, the term: 352
(a) "Awarding body" means, for purposes of state 353
contracts, an agency or the department, and for purposes of 354
local contracts, the governing body of the local governmental 355
entity. 356
(b) "Boycott of Israel" has the same meaning as defined in 357
s. 215.4725. 358
(c) "Business operations" means, for purposes specifically 359
related to Cuba or Syria, engaging in commerce in any form in 360
Cuba or Syria, including, but not limited to, acquiring, 361
developing, maintaining, owning, selling, possessing, leasing, 362
or operating equipment, facilities, personnel, products, 363
services, personal property, real property, military equipment, 364
or any other apparatus of business or commerce. 365
(d) "Local governmental entity" means a county, 366
municipality, special district, or other political s ubdivision 367
of the state. 368
(2) A company or other entity is ineligible to, and may 369
not, bid on, submit a proposal for, or enter into or renew a 370
contract with an agency or local governmental entity for goods 371
or services of: 372
(a) One hundred thousand dollar s or more Any amount if, at 373
the time of bidding on, submitting a proposal for, or entering 374
into or renewing such contract, the company or other entity is 375
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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
on the Scrutinized Companies or Other Entities that Boycott 376
Israel List, created pursuant to s. 215.47 25, or is engaged in a 377
boycott of Israel; or 378
(b) One million dollars or more if, at the time of bidding 379
on, submitting a proposal for, or entering into or renewing such 380
contract, the company or other entity: 381
1. Is on the Scrutinized Companies with Acti vities in 382
Sudan List or the Scrutinized Companies with Activities in Iran 383
Terrorism Sectors List, created pursuant to s. 215.473; or 384
2. Is engaged in business operations in Cuba or Syria. 385
(3)(a) Any contract with an agency or local governmental 386
entity for goods or services of $1 million or more entered into 387
or renewed on or after: 388
1. July 1, 2011, through June 30, 2012, must contain a 389
provision that allows for the termination of such contract at 390
the option of the awarding body if the company is found to have 391
submitted a false certification as provided under subsection (5) 392
or been placed on the Scrutinized Companies with Activities in 393
Sudan List or the Scrutinized Companies with Activities in the 394
Iran Petroleum Energy Sector List. 395
2. July 1, 2012, thr ough September 30, 2016, must contain 396
a provision that allows for the termination of such contract at 397
the option of the awarding body if the company is found to have 398
submitted a false certification as provided under subsection 399
(5), been placed on the Scrut inized Companies with Activities in 400
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Sudan List or the Scrutinized Companies with Activities in the 401
Iran Petroleum Energy Sector List, or been engaged in business 402
operations in Cuba or Syria. 403
3. October 1, 2016, through June 30, 2018, must contain a 404
provision that allows for the termination of such contract at 405
the option of the awarding body if the company: 406
a. Is found to have submitted a false certification as 407
provided under subsection (5); 408
b. Has been placed on the Scrutinized Companies that 409
Boycott Israel List, or is engaged in a boycott of Israel; 410
c. Has been placed on the Scrutinized Companies with 411
Activities in Sudan List or the Scrutinized Companies with 412
Activities in the Iran Petroleum Energy Sector List; or 413
d. Has been engaged in business o perations in Cuba or 414
Syria. 415
4. July 1, 2018, must contain a provision that allows for 416
the termination of such contract at the option of the awarding 417
body if the company is found to have submitted a false 418
certification as provided under subsection (5), be en placed on 419
the Scrutinized Companies with Activities in Sudan List, or been 420
engaged in business operations in Cuba or Syria. 421
5. 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 submitted a false 424
certification as provided under subsection (5) or has been 425
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placed on a list created pursuant to s. 215.473, relating to 426
scrutinized active business operations in Iran. 427
(b) Any contract with an agency or local governmental 428
entity for goods or services of any amount entered into or 429
renewed on or after: 430
1. July 1, 2018, must contain a provision that allows for 431
the termination of such contract at the option of the awarding 432
body if the company is found to h ave been placed on the 433
Scrutinized Companies that Boycott Israel List or is engaged in 434
a boycott of Israel. 435
2. July 1, 2025, must contain a provision that allows for 436
the termination of such contract at the option of the awarding 437
body if the company or other entity is found to have been placed 438
on the Scrutinized Companies or Other Entities that Boycott 439
Israel List or is engaged in a boycott of Israel. 440
(4) Notwithstanding subsection (2) or subsection (3), an 441
agency or local governmental entity, on a case -by-case basis, 442
may allow a company on the Scrutinized Companies with Activities 443
in Sudan List, the Scrutinized Companies with Activities in the 444
Iran Petroleum Energy Sector List, or the Scrutinized Companies 445
with Activities in Iran Terrorism Sectors List, or a company 446
engaged in business operations in Cuba or Syria, to be eligible 447
for, bid on, submit a proposal for, or enter into or renew a 448
contract for goods or services of $1 million or more, or may 449
allow a company or other entity on the Scrutinized Compan ies or 450
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Other Entities that Boycott Israel List to be eligible for, bid 451
on, submit a proposal for, or enter into or renew a contract for 452
goods or services of any amount, under the conditions set forth 453
in paragraph (a) or the conditions set forth in paragrap h (b): 454
(a)1. With respect to a company on the Scrutinized 455
Companies with Activities in Sudan List, all of the following 456
occur: 457
a. The scrutinized business operations were made before 458
July 1, 2011. 459
b. The scrutinized business operations have not been 460
expanded or renewed after July 1, 2011. 461
c. The agency or local governmental entity determines that 462
it is in the best interest of the state or local community to 463
contract with the company. 464
d. The company has adopted, has publicized, and is 465
implementing a formal plan to cease scrutinized business 466
operations and to refrain from engaging in any new scrutinized 467
business operations. 468
2. With respect to a company engaged in business 469
operations in Cuba or Syria, all of the following occur: 470
a. The business operations were made before July 1, 2012. 471
b. The business operations have not been expanded or 472
renewed after July 1, 2012. 473
c. The agency or local governmental entity determines that 474
it is in the best interest of the state or local community to 475
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contract with the company. 476
d. The company has adopted, has publicized, and is 477
implementing a formal plan to cease business operations and to 478
refrain from engaging in any new business operations. 479
3. With respect to a company or other entity on the 480
Scrutinized Companies or Other Entities that Boycott Israel 481
List, all of the following occur: 482
a. The boycott of Israel was initiated before October 1, 483
2016. 484
b. The company or other entity certifies in writing that 485
it has ceased its boycott of Israel. 486
c. The agency or local governmental entity determines that 487
it is in the best interest of the state or local community to 488
contract with the company or other entity. 489
d. The company or other entity has adopted, has 490
publicized, and is implementing a formal plan to cease 491
scrutinized business operations and to refrain from engaging in 492
any new scrutinized business operations. 493
4. With respect to a company on the Scrutinized Companies 494
with Activities in the Iran Petroleum Energy Sector List as of 495
November 6, 2023, all of the following occur: 496
a. The scrutinized business operations were made before 497
July 1, 2011. 498
b. The scrutinized business operations have not been 499
expanded or renewed after July 1, 2011. 500
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c. The agency or local governmental entity determines that 501
it is in the best interest of the state or local community to 502
contract with the company. 503
d. The company has adopted, has publicized, and is 504
implementing a formal plan to cease scrutinized business 505
operations and to refrain from engaging in any new scrutinized 506
business operations. 507
5. With respect to a company on the Scrutinized Companies 508
with Activities in Iran Terrorism Sectors List other than those 509
companies included on the Scrutinized Companies with Activities 510
in the Iran Petroleum Energy Sector List as of Novem ber 6, 2023, 511
all of the following occur: 512
a. The scrutinized business operations were made before 513
January 10, 2024. 514
b. The scrutinized business operations have not been 515
expanded or renewed on or after January 10, 2024. 516
c. The agency or local governmen tal entity determines that 517
it is in the best interest of the state or local community to 518
contract with the company. 519
d. The company has adopted, has publicized, and is 520
implementing a formal plan to cease those scrutinized business 521
operations and to refrai n from engaging in any new scrutinized 522
business operations. 523
(b) One of the following occurs: 524
1. The local governmental entity makes a public finding 525
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that, absent such an exemption, the local governmental entity 526
would be unable to obtain the goods or services for which the 527
contract is offered. 528
2. For a contract with an executive agency, the Governor 529
makes a public finding that, absent such an exemption, the 530
agency would be unable to obtain the goods or services for which 531
the contract is offered. 532
3. For a contract with an office of a state constitutional 533
officer other than the Governor, the state constitutional 534
officer makes a public finding that, absent such an exemption, 535
the office would be unable to obtain the goods or services for 536
which the contract is offered. 537
(5) At the time a company submits a bid or proposal for a 538
contract or before the company enters into or renews a contract 539
with an agency or local governmental entity for goods or 540
services of $1 million or more, the company must certify th at 541
the company is not on the Scrutinized Companies with Activities 542
in Sudan List or the Scrutinized Companies with Activities in 543
Iran Terrorism Sectors List and that it does not have business 544
operations in Cuba or Syria. At the time a company or other 545
entity submits a bid or proposal for a contract or before the 546
company or other entity enters into or renews a contract with an 547
agency or local governmental entity for goods or services of any 548
amount, the company or other entity must certify that the 549
company or other entity is not participating in a boycott of 550
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Israel. 551
(a) If, after the agency or the local governmental entity 552
determines, using credible information available to the public, 553
that the company or other entity has submitted a false 554
certification, the agency or local governmental entity shall 555
provide the company or other entity with written notice of its 556
determination. The company or other entity shall have 90 days 557
following receipt of the notice to respond in writing and to 558
demonstrate that the determ ination of false certification was 559
made in error. If the company or other entity does not make such 560
demonstration within 90 days after receipt of the notice, the 561
agency or the local governmental entity shall bring a civil 562
action against the company or other entity. If a civil action is 563
brought and the court determines that the company or other 564
entity submitted a false certification, the company or other 565
entity shall pay the penalty described in subparagraph 1. and 566
all reasonable attorney fees and costs, inc luding any costs for 567
investigations that led to the finding of false certification. 568
1. A civil penalty equal to the greater of $2 million or 569
twice the amount of the contract for which the false 570
certification was submitted shall be imposed. 571
2. The company or other entity is ineligible to bid on any 572
contract with an agency or local governmental entity for 3 years 573
after the date the agency or local governmental entity 574
determined that the company or other entity submitted a false 575
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certification. 576
(b) A civil action to collect the penalties described in 577
paragraph (a) must commence within 3 years after the date the 578
false certification is submitted. 579
(6) Only the agency or local governmental entity that is a 580
party to the contract may cause a civil action to be brought 581
under this section. This section does not create or authorize a 582
private right of action or enforcement of the penalties provided 583
in this section. An unsuccessful bidder, or any other person 584
other than the agency or local governmental entity, may not 585
protest the award of a contract or contract renewal on the basis 586
of a false certification. 587
(7) This section preempts any ordinance or rule of any 588
agency or local governmental entity involving public contracts 589
for goods or services of: 590
(a) One million dollars or more with a company or other 591
entity engaged in scrutinized business operations. 592
(b) One hundred thousand dollars or more Any amount with a 593
company or other entity that has been placed on the Scrutinized 594
Companies or Other Entities that Boycott Israel List or is 595
engaged in a boycott of Israel. 596
(8) The contracting prohibitions in this section 597
applicable to companies on the Scrutinized Companies with 598
Activities in Sudan List or the Scrutinized Companies with 599
Activities in Iran Ter rorism Sectors List or to companies 600
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engaged in business operations in Cuba or Syria become 601
inoperative on the date that federal law ceases to authorize the 602
states to adopt and enforce such contracting prohibitions. 603
Section 4. This act shall take effect July 1, 2025. 604