Florida Senate - 2025 CS for SB 1678 By the Committee on Governmental Oversight and Accountability; and Senators Leek, Martin, and Ingoglia 585-02567-25 20251678c1 1 A bill to be entitled 2 An act relating to entities that boycott Israel; 3 amending s. 215.4725, F.S.; defining terms; revising 4 definitions; requiring the public fund to make its 5 best efforts to identify certain institutions, 6 organizations, agencies, governments, and other 7 entities in which the public fund has direct or 8 indirect holdings; requiring the public fund to 9 compile and make available the Scrutinized Companies 10 or Other Entities that Boycott Israel List; requiring 11 the public fund to quarterly update and make publicly 12 available such list; revising the procedures the 13 public fund must follow for assembling companies or 14 other entities on such list; requiring the public fund 15 to file a certain report with each member of the Board 16 of Trustees of the State Board of Administration and 17 with the Legislature which includes such list; 18 requiring the public fund to file a certain report 19 with a summary of correspondence between other 20 entities and the public fund; requiring that specified 21 actions be adopted and incorporated into a certain 22 statement; amending s. 265.286, F.S.; requiring 23 applicants to sign a certification form attesting that 24 they comply with specified antidiscrimination laws and 25 will not engage in antisemitic discrimination or 26 antisemitic speech in conjunction with the program or 27 project for which their grant is awarded; 28 disqualifying for a specified timeframe grant 29 applicants that engage in boycotts, antisemitic 30 discrimination, or antisemitic speech; requiring 31 recipients found to have engaged in boycotts or 32 antisemitic discrimination in violation of their 33 certification to pay a specified penalty; authorizing 34 individuals to file a written complaint to the 35 Attorney General for not pursuing a cause of action 36 within a specified timeframe; requiring the Attorney 37 General to provide a written response within a 38 specified timeframe; amending s. 287.135, F.S.; 39 revising the definition of the term awarding body; 40 revising the contract values that prohibit a company 41 or other entity from being eligible to bid on, submit 42 a proposal for, or enter into or renew a contract with 43 an agency or local governmental entity; requiring 44 agencies and local governmental entities that enter 45 into or renew a contract to include a specific 46 termination provision; authorizing agencies and local 47 governmental entities to bid on, submit a proposal 48 for, or enter into or renew a contract for goods and 49 services with other entities that boycott Israel under 50 specified circumstances; requiring other entities to 51 submit a certain certification at the same time as 52 they submit a bid or proposal or enter into or renew a 53 contract with an agency or local governmental entity; 54 authorizing civil actions against companies and other 55 entities under specified conditions; providing an 56 effective date. 57 58 Be It Enacted by the Legislature of the State of Florida: 59 60 Section 1.Section 215.4725, Florida Statutes, is amended 61 to read: 62 215.4725Prohibited investments by the State Board of 63 Administration; companies that boycott Israel. 64 (1)DEFINITIONS.As used in this section, the term: 65 (a)Agency means any of the various state officers, 66 departments, boards, commissions, divisions, bureaus, and 67 councils and any other unit of organization, however designated, 68 of the executive branch of state government. 69 (b)Boycott Israel or boycott of Israel means refusing 70 to deal, terminating business activities, or taking other 71 actions to limit commercial relations with Israel, or persons or 72 entities doing business in Israel or in Israeli-controlled 73 territories, in a discriminatory manner. A statement by a 74 company, an educational institution, a nonprofit organization, 75 an agency, a local governmental entity or unit thereof, or a 76 foreign government that it is participating in a boycott of 77 Israel, or that it has initiated a boycott in response to a 78 request for a boycott of Israel or in compliance with, or in 79 furtherance of, calls for a boycott of Israel, may be considered 80 by the State Board of Administration to be evidence that a 81 company or other entity is participating in a boycott of Israel. 82 The term includes taking adverse action, including changes to 83 published commercial financial ratings, risk ratings, and 84 controversy ratings based on nonpecuniary factors, to inflict 85 economic harm on Israel or persons or entities doing business in 86 Israel or in Israeli-controlled territories. The term includes 87 trade practices that are prohibited by federal regulations 88 issued in compliance with 50 U.S.C. s. 4842 and does not include 89 trade practices that are preempted by federal law. The term also 90 includes an academic boycott of Israel in which an educational 91 institution enacts or implements restrictive policies, or 92 otherwise participates in activities having the object or effect 93 of restricting ongoing or potential academic relationships, on 94 the basis of ties to the State of Israel or its academic, 95 educational, or research institutions, or by holding 96 researchers, students, prospective students, guest lecturers, 97 and artists-in-residence or institutions collectively liable for 98 any alleged objectionable conduct by the State of Israel. An 99 educational institution is deemed to have engaged in an academic 100 boycott of Israel if any of its departments, centers, or other 101 organs engages in a boycott, or, in the case of a foreign 102 educational institution, if any faculty union recognized by that 103 institution engages in a boycott. 104 (c)(b)Company means a sole proprietorship, organization, 105 association, corporation, partnership, joint venture, limited 106 partnership, limited liability partnership, limited liability 107 company, or other entity or business association, including all 108 wholly owned subsidiaries, majority-owned subsidiaries, and 109 parent companies, or affiliates, having more than 10 full-time 110 employees. The term does not include a natural person or a sole 111 proprietorship that exists for the 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 nonprofit organization, an agency, a local 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 identify 137 all scrutinized companies or other entities in which the public 138 fund has direct or indirect holdings or could possibly have such 139 holdings in the future. Such efforts include: 140 1.To the extent that the public fund finds it appropriate, 141 reviewing and relying on publicly available information 142 regarding companies or other entities that boycott Israel, 143 including information provided by nonprofit organizations, 144 research firms, international organizations, and government 145 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 institutional investors that prohibit 150 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 List 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 holdings 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 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 funds 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 funds 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 companys or other 198 entitys most recent appearance on the Scrutinized Companies or 199 Other Entities that Boycott Israel List. 200 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 Scrutinized 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 where the 217 foreign government has authority to actively control 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 submit 222 letters to the managers of such investment funds containing 223 companies that boycott Israel requesting that they consider 224 removing such companies from the fund or create a similar fund 225 having indirect holdings devoid of such companies. If the 226 manager creates a similar fund, the public fund shall replace 227 all applicable investments with investments in the similar fund 228 in an expedited timeframe consistent with prudent investing 229 standards. For the purposes of this section, an alternative 230 investment, as the term is defined in s. 215.4401, and 231 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 of 236 the Board of Trustees of the State Board of Administration, the 237 President of the Senate, and the Speaker of the House 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 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 funds actions taken in compliance with this 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 funds investment policy statement 261 as provided in s. 215.475. 262 (6)INVESTMENT AND REINVESTMENT 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 evidence 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 divestment 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 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 reinvestment 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 scrutinized 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 exemption 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: 299 265.286Art and cultural grants. 300 (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 satisfying the nondiscrimination requirements of 306 this section, each applicant must sign a certification form 307 attesting to the fact that they are complying with all relevant 308 antidiscrimination laws, including the anti-boycott rules of 309 this state pursuant to ss. 215.4725 and 287.135, and will not 310 engage in antisemitic discrimination as defined by s. 1.015, 311 including refusals to deal based on an individuals or entitys 312 real or perceived connection to the State of Israel, or engage 313 in antisemitic speech as defined in s. 1.015, in conjunction 314 with the program or project for which their grant is awarded. 315 The division may not award any new grant that will, in whole or 316 in part, inure to the personal benefit of any council or review 317 panel member during the members term of office if the council 318 or panel member participated in the vote of the council or panel 319 recommending the award. This paragraph does not prohibit the 320 division from awarding a grant to an entity with which a council 321 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 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 its grant was awarded shall be subject to a penalty 330 payable to the State Treasury of 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 to 338 read: 339 287.135Prohibition against contracting with 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 contracts, 344 an agency or the department, and for purposes of local 345 contracts, the governing body of the local governmental entity. 346 (b)Boycott of Israel has the same meaning as defined in 347 s. 215.4725. 348 (c)Business operations means, for purposes specifically 349 related to Cuba or Syria, engaging in commerce in any form in 350 Cuba or Syria, including, but not limited to, acquiring, 351 developing, maintaining, owning, selling, possessing, leasing, 352 or operating equipment, facilities, personnel, products, 353 services, personal property, real property, military equipment, 354 or any other apparatus of business or commerce. 355 (d)Local governmental entity means a county, 356 municipality, special district, or other political subdivision 357 of the state. 358 (2)A company or other entity is ineligible to, and may 359 not, bid on, submit a proposal for, or enter into or renew a 360 contract with an agency or local governmental entity for goods 361 or services of: 362 (a)One hundred thousand dollars or more Any amount if, at 363 the time of bidding on, submitting a proposal for, or entering 364 into or renewing such contract, the company or other entity is 365 on the Scrutinized Companies or Other Entities that Boycott 366 Israel List, created pursuant to s. 215.4725, or is engaged in a 367 boycott of Israel; or 368 (b)One million dollars or more if, at the time of bidding 369 on, submitting a proposal for, or entering into or renewing such 370 contract, the company or other entity: 371 1.Is on the Scrutinized Companies with Activities in Sudan 372 List or the Scrutinized Companies with Activities in Iran 373 Terrorism Sectors List, created pursuant to s. 215.473; or 374 2.Is engaged in business operations in Cuba or Syria. 375 (3)(a)Any contract with an agency or local governmental 376 entity for goods or services of $1 million or more entered into 377 or renewed on or after: 378 1.July 1, 2011, through June 30, 2012, must contain a 379 provision that allows for the termination of such contract at 380 the option of the awarding body if the company is found to have 381 submitted a false certification as provided under subsection (5) 382 or been placed on the Scrutinized Companies with Activities in 383 Sudan List or the Scrutinized Companies with Activities in the 384 Iran Petroleum Energy Sector List. 385 2.July 1, 2012, through September 30, 2016, must contain a 386 provision that allows for the termination of such contract at 387 the option of the awarding body if the company is found to have 388 submitted a false certification as provided under subsection 389 (5), been placed on the Scrutinized Companies with Activities in 390 Sudan List or the Scrutinized Companies with Activities in the 391 Iran Petroleum Energy Sector List, or been engaged in business 392 operations in Cuba or Syria. 393 3.October 1, 2016, through June 30, 2018, must contain a 394 provision that allows for the termination of such contract at 395 the option of the awarding body if the company: 396 a.Is found to have submitted a false certification as 397 provided under subsection (5); 398 b.Has been placed on the Scrutinized Companies that 399 Boycott Israel List, or is engaged in a boycott of Israel; 400 c.Has been placed on the Scrutinized Companies with 401 Activities in Sudan List or the Scrutinized Companies with 402 Activities in the Iran Petroleum Energy Sector List; or 403 d.Has been engaged in business operations in Cuba or 404 Syria. 405 4.July 1, 2018, must contain a provision that allows for 406 the termination of such contract at the option of the awarding 407 body if the company is found to have submitted a false 408 certification as provided under subsection (5), been placed on 409 the Scrutinized Companies with Activities in Sudan List, or been 410 engaged in business operations in Cuba or Syria. 411 5.July 1, 2018, must contain a provision that allows for 412 the termination of such contract at the option of the awarding 413 body if the company is found to have submitted a false 414 certification as provided under subsection (5) or has been 415 placed on a list created pursuant to s. 215.473, relating to 416 scrutinized active business operations in Iran. 417 (b)Any contract with an agency or local governmental 418 entity for goods or services of any amount entered into or 419 renewed on or after: 420 1.July 1, 2018, must contain a provision that allows for 421 the termination of such contract at the option of the awarding 422 body if the company is found to have been placed on the 423 Scrutinized Companies that Boycott Israel List or is engaged in 424 a boycott of Israel. 425 2.July 1, 2025, must contain a provision that allows for 426 the termination of such contract at the option of the awarding 427 body if the company or other entity is found to have been placed 428 on the Scrutinized Companies or Other Entities that Boycott 429 Israel List or is engaged in a boycott of Israel. 430 (4)Notwithstanding subsection (2) or subsection (3), an 431 agency or local governmental entity, on a case-by-case basis, 432 may allow a company on the Scrutinized Companies with Activities 433 in Sudan List, the Scrutinized Companies with Activities in the 434 Iran Petroleum Energy Sector List, or the Scrutinized Companies 435 with Activities in Iran Terrorism Sectors List, or a company 436 engaged in business operations in Cuba or Syria, to be eligible 437 for, bid on, submit a proposal for, or enter into or renew a 438 contract for goods or services of $1 million or more, or may 439 allow a company or other entity on the Scrutinized Companies or 440 Other Entities that Boycott Israel List to be eligible for, bid 441 on, submit a proposal for, or enter into or renew a contract for 442 goods or services of any amount, under the conditions set forth 443 in paragraph (a) or the conditions set forth in paragraph (b): 444 (a)1.With respect to a company on the Scrutinized 445 Companies with Activities in Sudan List, all of the following 446 occur: 447 a.The scrutinized business operations were made before 448 July 1, 2011. 449 b.The scrutinized business operations have not been 450 expanded or renewed after July 1, 2011. 451 c.The agency or local governmental entity determines that 452 it is in the best interest of the state or local community to 453 contract with the company. 454 d.The company has adopted, has publicized, and is 455 implementing a formal plan to cease scrutinized business 456 operations and to refrain from engaging in any new scrutinized 457 business operations. 458 2.With respect to a company engaged in business operations 459 in Cuba or Syria, all of the following occur: 460 a.The business operations were made before July 1, 2012. 461 b.The business operations have not been expanded or 462 renewed after July 1, 2012. 463 c.The agency or local governmental entity determines that 464 it is in the best interest of the state or local community to 465 contract with the company. 466 d.The company has adopted, has publicized, and is 467 implementing a formal plan to cease business operations and to 468 refrain from engaging in any new business operations. 469 3.With respect to a company or other entity on the 470 Scrutinized Companies or Other Entities that Boycott Israel 471 List, all of the following occur: 472 a.The boycott of Israel was initiated before October 1, 473 2016. 474 b.The company or other entity certifies in writing that it 475 has ceased its boycott of Israel. 476 c.The agency or local governmental entity determines that 477 it is in the best interest of the state or local community to 478 contract with the company or other entity. 479 d.The company or other entity has adopted, has publicized, 480 and is implementing a formal plan to cease scrutinized business 481 operations and to refrain from engaging in any new scrutinized 482 business operations. 483 4.With respect to a company on the Scrutinized Companies 484 with Activities in the Iran Petroleum Energy Sector List as of 485 November 6, 2023, all of the following occur: 486 a.The scrutinized business operations were made before 487 July 1, 2011. 488 b.The scrutinized business operations have not been 489 expanded or renewed after July 1, 2011. 490 c.The agency or local governmental entity determines that 491 it is in the best interest of the state or local community to 492 contract with the company. 493 d.The company has adopted, has publicized, and is 494 implementing a formal plan to cease scrutinized business 495 operations and to refrain from engaging in any new scrutinized 496 business operations. 497 5.With respect to a company on the Scrutinized Companies 498 with Activities in Iran Terrorism Sectors List other than those 499 companies included on the Scrutinized Companies with Activities 500 in the Iran Petroleum Energy Sector List as of November 6, 2023, 501 all of the following occur: 502 a.The scrutinized business operations were made before 503 January 10, 2024. 504 b.The scrutinized business operations have not been 505 expanded or renewed on or after January 10, 2024. 506 c.The agency or local governmental entity determines that 507 it is in the best interest of the state or local community to 508 contract with the company. 509 d.The company has adopted, has publicized, and is 510 implementing a formal plan to cease those scrutinized business 511 operations and to refrain from engaging in any new scrutinized 512 business operations. 513 (b)One of the following occurs: 514 1.The local governmental entity makes a public finding 515 that, absent such an exemption, the local governmental entity 516 would be unable to obtain the goods or services for which the 517 contract is offered. 518 2.For a contract with an executive agency, the Governor 519 makes a public finding that, absent such an exemption, the 520 agency would be unable to obtain the goods or services for which 521 the contract is offered. 522 3.For a contract with an office of a state constitutional 523 officer other than the Governor, the state constitutional 524 officer makes a public finding that, absent such an exemption, 525 the office would be unable to obtain the goods or services for 526 which the contract is offered. 527 (5)At the time a company submits a bid or proposal for a 528 contract or before the company enters into or renews a contract 529 with an agency or local governmental entity for goods or 530 services of $1 million or more, the company must certify that 531 the company is not on the Scrutinized Companies with Activities 532 in Sudan List or the Scrutinized Companies with Activities in 533 Iran Terrorism Sectors List and that it does not have business 534 operations in Cuba or Syria. At the time a company or other 535 entity submits a bid or proposal for a contract or before the 536 company or other entity enters into or renews a contract with an 537 agency or local governmental entity for goods or services of any 538 amount, the company or other entity must certify that the 539 company or other entity is not participating in a boycott of 540 Israel. 541 (a)If, after the agency or the local governmental entity 542 determines, using credible information available to the public, 543 that the company or other entity has submitted a false 544 certification, the agency or local governmental entity shall 545 provide the company or other entity with written notice of its 546 determination. The company or other entity shall have 90 days 547 following receipt of the notice to respond in writing and to 548 demonstrate that the determination of false certification was 549 made in error. If the company or other entity does not make such 550 demonstration within 90 days after receipt of the notice, the 551 agency or the local governmental entity shall bring a civil 552 action against the company or other entity. If a civil action is 553 brought and the court determines that the company or other 554 entity submitted a false certification, the company or other 555 entity shall pay the penalty described in subparagraph 1. and 556 all reasonable attorney fees and costs, including any costs for 557 investigations that led to the finding of false certification. 558 1.A civil penalty equal to the greater of $2 million or 559 twice the amount of the contract for which the false 560 certification was submitted shall be imposed. 561 2.The company or other entity is ineligible to bid on any 562 contract with an agency or local governmental entity for 3 years 563 after the date the agency or local governmental entity 564 determined that the company or other entity submitted a false 565 certification. 566 (b)A civil action to collect the penalties described in 567 paragraph (a) must commence within 3 years after the date the 568 false certification is submitted. 569 (6)Only the agency or local governmental entity that is a 570 party to the contract may cause a civil action to be brought 571 under this section. This section does not create or authorize a 572 private right of action or enforcement of the penalties provided 573 in this section. An unsuccessful bidder, or any other person 574 other than the agency or local governmental entity, may not 575 protest the award of a contract or contract renewal on the basis 576 of a false certification. 577 (7)This section preempts any ordinance or rule of any 578 agency or local governmental entity involving public contracts 579 for goods or services of: 580 (a)One million dollars or more with a company or other 581 entity engaged in scrutinized business operations. 582 (b)One hundred thousand dollars or more Any amount with a 583 company or other entity that has been placed on the Scrutinized 584 Companies or Other Entities that Boycott Israel List or is 585 engaged in a boycott of Israel. 586 (8)The contracting prohibitions in this section applicable 587 to companies on the Scrutinized Companies with Activities in 588 Sudan List or the Scrutinized Companies with Activities in Iran 589 Terrorism Sectors List or to companies engaged in business 590 operations in Cuba or Syria become inoperative on the date that 591 federal law ceases to authorize the states to adopt and enforce 592 such contracting prohibitions. 593 Section 4.This act shall take effect July 1, 2025.