Florida Senate - 2025 CS for CS for SB 1678 By the Committees on Appropriations; and Governmental Oversight and Accountability; and Senators Leek, Martin, Ingoglia, and Rodriguez 576-03213-25 20251678c2 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 Department 15 of Management Services to work with the public fund to 16 determine the companies or other entities with which 17 the state contracts or has grant agreements; requiring 18 the department to notify certain companies that they 19 may be barred from future contracts with the state; 20 requiring the public fund to file a certain report 21 with each member of the Board of Trustees of the State 22 Board of Administration and with the Legislature which 23 includes such list; requiring the public fund to file 24 a certain report with a summary of correspondence 25 between other entities and the public fund; requiring 26 that specified actions be adopted and incorporated 27 into a certain statement; amending s. 265.286, F.S.; 28 requiring applicants to sign a certification form 29 attesting that they comply with specified 30 antidiscrimination laws and will not engage in 31 antisemitic discrimination or antisemitic speech in 32 conjunction with the program or project for which 33 their grant is awarded; disqualifying for a specified 34 timeframe grant applicants that engage in boycotts, 35 antisemitic discrimination, or antisemitic speech; 36 requiring recipients found to have engaged in boycotts 37 or antisemitic discrimination in violation of their 38 certification to pay a specified penalty; authorizing 39 individuals to file a written complaint to the 40 Attorney General for not pursuing a cause of action 41 within a specified timeframe; requiring the Attorney 42 General to provide a written response within a 43 specified timeframe; amending s. 287.135, F.S.; 44 revising the definition of the term awarding body; 45 revising the contract values that prohibit a company 46 or other entity from being eligible to bid on, submit 47 a proposal for, or enter into or renew a contract with 48 an agency or local governmental entity; requiring 49 agencies and local governmental entities that enter 50 into or renew a contract to include a specific 51 termination provision; authorizing agencies and local 52 governmental entities to bid on, submit a proposal 53 for, or enter into or renew a contract for goods and 54 services with other entities that boycott Israel under 55 specified circumstances; requiring other entities to 56 submit a certain certification at the same time as 57 they submit a bid or proposal or enter into or renew a 58 contract with an agency or local governmental entity; 59 authorizing civil actions against companies and other 60 entities under specified conditions; providing an 61 effective date. 62 63 Be It Enacted by the Legislature of the State of Florida: 64 65 Section 1.Section 215.4725, Florida Statutes, is amended 66 to read: 67 215.4725Prohibited investments by the State Board of 68 Administration; companies and other entities that boycott 69 Israel. 70 (1)DEFINITIONS.As used in this section, the term: 71 (a)Agency means any of the various state officers, 72 departments, boards, commissions, divisions, bureaus, and 73 councils and any other unit of organization, however designated, 74 of the executive branch of state government. 75 (b)Boycott Israel or boycott of Israel means refusing 76 to deal, terminating business activities, or taking other 77 actions to limit commercial relations with Israel, or persons or 78 entities doing business in Israel or in Israeli-controlled 79 territories, in a discriminatory manner. A statement by a 80 company, an educational institution, a nonprofit organization, 81 an agency, a local governmental entity or unit thereof, or a 82 foreign government that it is participating in a boycott of 83 Israel, or that it has initiated a boycott in response to a 84 request for a boycott of Israel or in compliance with, or in 85 furtherance of, calls for a boycott of Israel, may be considered 86 by the State Board of Administration to be evidence that a 87 company or other entity is participating in a boycott of Israel. 88 The term includes taking adverse action, including changes to 89 published commercial financial ratings, risk ratings, and 90 controversy ratings based on nonpecuniary factors, to inflict 91 economic harm on Israel or persons or entities doing business in 92 Israel or in Israeli-controlled territories. The term includes 93 trade practices that are prohibited by federal regulations 94 issued in compliance with 50 U.S.C. s. 4842 and does not include 95 trade practices that are preempted by federal law. The term also 96 includes an academic boycott of Israel in which an educational 97 institution enacts or implements restrictive policies, or 98 otherwise participates in activities having the object or effect 99 of restricting ongoing or potential academic relationships, on 100 the basis of ties to the State of Israel or its academic, 101 educational, or research institutions, or by holding 102 researchers, students, prospective students, guest lecturers, 103 and artists-in-residence or institutions collectively liable for 104 any alleged objectionable conduct by the State of Israel. An 105 educational institution is deemed to have engaged in an academic 106 boycott of Israel if any of its departments, centers, or other 107 organs engages in a boycott, or, in the case of a foreign 108 educational institution, if any faculty union recognized by that 109 institution engages in a boycott. 110 (c)(b)Company means an a sole proprietorship, 111 organization, an association, a corporation, a partnership, a 112 joint venture, a limited partnership, a limited liability 113 partnership, a limited liability company, or other entity or 114 business association, including all wholly owned subsidiaries, 115 majority-owned subsidiaries, and parent companies, or 116 affiliates, having more than 10 full-time employees. The term 117 does not include a natural person or a sole proprietorship that 118 exists for the purpose of making profit. 119 (d)(c)Direct holdings in a company means all securities 120 of that company that are held directly by the public fund or in 121 an account or fund in which the public fund owns all shares or 122 interests. 123 (e)(d)Indirect holdings in a company means all 124 securities of that company that are held in a commingled fund or 125 other collective investment, such as a mutual or index fund, in 126 which the public fund owns shares or interests, together with 127 other investors not subject to this section or which are held in 128 an index fund. 129 (f)Local governmental entity means a county, 130 municipality, special district, or other political subdivision. 131 (g)Other entity means an educational institution, a 132 nonprofit organization, an agency, a local governmental entity 133 or unit thereof, or a foreign government, including any of its 134 public investment funds, public pension funds, sovereign wealth 135 funds, or other government-sponsored investment funds. 136 (h)(e)Public fund means all funds, assets, trustees 137 trustee, and other designates under the State Board of 138 Administration pursuant to part I of chapter 121. 139 (i)(f)Scrutinized companies or other entities means 140 companies or other entities that boycott Israel or engage in a 141 boycott of Israel. 142 (2)IDENTIFICATION OF COMPANIES OR OTHER ENTITIES. 143 (a)The public fund shall make its best efforts to identify 144 all scrutinized companies or other entities in which the public 145 fund has direct or indirect holdings or could possibly have such 146 holdings in the future. Such efforts include: 147 1.To the extent that the public fund finds it appropriate, 148 reviewing and relying on publicly available information 149 regarding companies or other entities that boycott Israel, 150 including information provided by nonprofit organizations, 151 research firms, international organizations, and government 152 entities; 153 2.Contacting asset managers contracted by the public fund 154 for information regarding companies or other entities that 155 boycott Israel; or 156 3.Contacting other institutional investors that prohibit 157 such investments or that have engaged with companies or other 158 entities that boycott Israel. 159 (b)By the first meeting of the public fund following the 160 identification of scrutinized companies in accordance with 161 paragraph (a), the public fund shall compile and make available 162 the Scrutinized Companies or Other Entities that Boycott Israel 163 List. 164 (c)The public fund shall update and make publicly 165 available quarterly the Scrutinized Companies or Other Entities 166 that Boycott Israel List based on evolving information from, 167 among other sources, those listed in paragraph (a). 168 (3)REQUIRED ACTIONS.The public fund shall adhere to the 169 following procedures for assembling companies or other entities 170 on the Scrutinized Companies or Other Entities that Boycott 171 Israel List. 172 (a)Engagement. 173 1.The public fund shall immediately determine the 174 companies or other entities on the Scrutinized Companies or 175 Other Entities that Boycott Israel List in which the public fund 176 owns direct or indirect holdings. The Department of Management 177 Services shall work with the public fund to determine the 178 companies or other entities with which the state currently 179 contracts or has a grant agreement, as detailed under ss. 180 287.135 and 265.286, respectively. 181 2.For each company or other entity newly identified under 182 this paragraph, the public fund shall send a written notice 183 informing the company or other entity of its scrutinized company 184 status and that it may become subject to investment prohibition 185 or divestment by the public fund. The Department of Management 186 Services shall also notify each company or other entity newly 187 identified under this paragraph that it may be barred from 188 future contracts or grants awarded by the state. The notices 189 notice must inform the company or other entity of the 190 opportunity to clarify its activities regarding the boycott of 191 Israel and encourage the company or other entity to cease the 192 boycott of Israel within 90 days in order to avoid qualifying 193 for investment prohibition or divestment. 194 3.If, within 90 days after the public funds first 195 engagement with a company or other entity pursuant to this 196 paragraph, the company or other entity ceases a boycott of 197 Israel, the company or other entity shall be removed from the 198 Scrutinized Companies or Other Entities that Boycott Israel 199 List, and the provisions of this section ceases shall cease to 200 apply to that company or other entity unless that company or 201 other entity resumes a boycott of Israel. 202 (b)Divestment. 203 1.If, after 90 days following the public funds first 204 engagement with a company or other entity pursuant to paragraph 205 (a), the company or other entity continues to boycott Israel, 206 the public fund must sell, redeem, divest, or withdraw all 207 publicly traded securities of the company or other entity from 208 the public fund within 12 months after the companys or other 209 entitys most recent appearance on the Scrutinized Companies or 210 Other Entities that Boycott Israel List. 211 2.If a company or other entity that ceased a boycott of 212 Israel following engagement pursuant to paragraph (a) resumes 213 such activities, this paragraph immediately applies, and the 214 public fund must send a written notice to the company or other 215 entity. The company or other entity must also be immediately 216 reintroduced onto the Scrutinized Companies or Other Entities 217 that Boycott Israel List, as applicable. 218 (c)Prohibition.The public fund is prohibited from 219 acquiring securities of companies or other entities on the 220 Scrutinized Companies or Other Entities that Boycott Israel 221 List, except as provided in paragraph (d) and subsection (6). 222 The public fund and the endowments and retirement funds of the 223 State University System may not acquire or hold the debt of a 224 foreign government that is on the Scrutinized Companies or Other 225 Entities that Boycott Israel List, or of a foreign government 226 with a sovereign wealth fund that is on the Scrutinized 227 Companies or Other Entities that Boycott Israel List where the 228 foreign government has authority to actively control or manage 229 the fund. 230 (d)Excluded securities.Notwithstanding this section, 231 paragraphs (b) and (c) do not apply to: 232 1.Indirect holdings. However, the public fund shall submit 233 letters to the managers of such investment funds containing 234 companies that boycott Israel requesting that they consider 235 removing such companies from the fund or create a similar fund 236 having indirect holdings devoid of such companies. If the 237 manager creates a similar fund, the public fund shall replace 238 all applicable investments with investments in the similar fund 239 in an expedited timeframe consistent with prudent investing 240 standards. For the purposes of this section, an alternative 241 investment, as the term is defined in s. 215.4401, and 242 securities that are not publicly traded are deemed to be 243 indirect holdings. 244 2.Exchange-traded funds. 245 (4)REPORTING. 246 (a)The public fund shall file a report with each member of 247 the Board of Trustees of the State Board of Administration, the 248 President of the Senate, and the Speaker of the House of 249 Representatives which includes the Scrutinized Companies or 250 Other Entities that Boycott Israel List within 30 days after the 251 list is created. This report shall be made available to the 252 public. 253 (b)At each quarterly meeting of the Board of Trustees 254 thereafter, the public fund shall file a report, which shall be 255 made available to the public and to each member of the Board of 256 Trustees of the State Board of Administration, the President of 257 the Senate, and the Speaker of the House of Representatives, 258 which includes: 259 1.A summary of correspondence with companies or other 260 entities engaged by the public fund under subsection (3); 261 2.All investments sold, redeemed, divested, or withdrawn 262 in compliance with paragraph (3)(b); 263 3.All prohibited investments under paragraph (3)(c); 264 4.Any progress made under paragraph (3)(d); and 265 5.A list of all publicly traded securities held directly 266 by the public fund. 267 (5)INVESTMENT POLICY STATEMENT OBLIGATIONS.The public 268 funds actions taken in compliance with this section, including 269 all good faith determinations regarding companies or other 270 entities as required by this act, shall be adopted and 271 incorporated into the public funds investment policy statement 272 as provided in s. 215.475. 273 (6)INVESTMENT AND REINVESTMENT IN CERTAIN SCRUTINIZED 274 COMPANIES OR OTHER ENTITIES.Notwithstanding any other provision 275 of this section, the public fund may invest in, cease divestment 276 from, or reinvest in certain scrutinized companies or other 277 entities if clear and convincing evidence shows that the value 278 of all assets under management by the public fund becomes equal 279 to or less than 99.50 percent, or 50 basis points, of the 280 hypothetical value of all assets under management by the public 281 fund, assuming no investment prohibition or divestment for any 282 company or other entity had occurred under subsection (3). 283 Cessation of the investment prohibition or the divestment, or 284 reinvestment or any new investment, in a scrutinized company or 285 other entity is limited to the minimum steps necessary to avoid 286 the contingency described in this subsection. For any cessation 287 of the investment prohibition or divestment, or reinvestment or 288 new investment authorized by this subsection, the public fund 289 shall provide a written report to each member of the Board of 290 Trustees of the State Board of Administration, the President of 291 the Senate, and the Speaker of the House of Representatives in 292 advance of the cessation of investment prohibition or the 293 divestment, or reinvestment or new investment, updated 294 semiannually thereafter as applicable, setting forth the reasons 295 and justification, supported by clear and convincing evidence, 296 for its decisions to cease the investment prohibition or 297 divestment, or to reinvest in scrutinized companies or other 298 entities. 299 (7)STATE UNIVERSITY SYSTEM COMPLIANCE.The endowment and 300 retirement funds of the universities of the State University 301 System are required to comply with the divestment requirement 302 and prohibition of acquiring securities of companies or other 303 entities on the Scrutinized Companies or Other Entities that 304 Boycott Israel List. The endowment and retirement funds of the 305 universities of the State University System are provided the 306 same exemption as provided in paragraph (3)(d). 307 Section 2.Paragraph (c) of subsection (6) of section 308 265.286, Florida Statutes, is amended, and paragraphs (d) and 309 (e) are added to that subsection, to read: 310 265.286Art and cultural grants. 311 (6)The division shall adopt rules establishing: 312 (c)The panel review process, including, but not limited 313 to, criteria for reviewing grant applications to ensure 314 compliance with applicable federal and state law, including 315 those related to discrimination and conflicts of interest. For 316 the purposes of satisfying the nondiscrimination requirements of 317 this section, each applicant must sign a certification form 318 attesting to the fact that they are complying with all relevant 319 antidiscrimination laws, including the anti-boycott rules of 320 this state pursuant to ss. 215.4725 and 287.135, and will not 321 engage in antisemitic discrimination as defined by s. 1.015, 322 including refusals to deal based on an individuals or entitys 323 real or perceived connection to the State of Israel, or engage 324 in antisemitic speech as defined in s. 1.015, in conjunction 325 with the program or project for which their grant is awarded. 326 The division may not award any new grant that will, in whole or 327 in part, inure to the personal benefit of any council or review 328 panel member during the members term of office if the council 329 or panel member participated in the vote of the council or panel 330 recommending the award. This paragraph does not prohibit the 331 division from awarding a grant to an entity with which a council 332 or panel member is associated. 333 (d)A grant applicant found to be engaging in any boycott 334 action, antisemitic discrimination, or antisemitic speech in 335 conjunction with the program or project for which the grant is 336 awarded shall be disqualified from grant eligibility until 10 337 years after any such action has ceased. A grant recipient found 338 to have engaged in a boycott of Israel or antisemitic 339 discrimination during the duration of the project or program for 340 which its grant was awarded shall be subject to a penalty 341 payable to the State Treasury of three times the amount of the 342 grant received for which the false certification was submitted. 343 (e)If the Attorney General fails to pursue a cause of 344 action within 90 days after a violation of paragraph (c), 345 individuals have the right to file a written complaint to the 346 Attorney General, who in turn will be required to provide a 347 written response within 30 days after receipt of the complaint. 348 Section 3.Section 287.135, Florida Statutes, is amended to 349 read: 350 287.135Prohibition against contracting with scrutinized 351 companies or entities. 352 (1)In addition to the terms defined in ss. 287.012 and 353 215.473, as used in this section, the term: 354 (a)Awarding body means, for purposes of state contracts, 355 an agency or the department, and for purposes of local 356 contracts, the governing body of the local governmental entity. 357 (b)Boycott of Israel has the same meaning as defined in 358 s. 215.4725. 359 (c)Business operations means, for purposes specifically 360 related to Cuba or Syria, engaging in commerce in any form in 361 Cuba or Syria, including, but not limited to, acquiring, 362 developing, maintaining, owning, selling, possessing, leasing, 363 or operating equipment, facilities, personnel, products, 364 services, personal property, real property, military equipment, 365 or any other apparatus of business or commerce. 366 (d)Local governmental entity means a county, 367 municipality, special district, or other political subdivision 368 of the state. 369 (2)A company or other entity is ineligible to, and may 370 not, bid on, submit a proposal for, or enter into or renew a 371 contract with an agency or local governmental entity for goods 372 or services of: 373 (a)One hundred thousand dollars or more Any amount if, at 374 the time of bidding on, submitting a proposal for, or entering 375 into or renewing such contract, the company or other entity is 376 on the Scrutinized Companies or Other Entities that Boycott 377 Israel List, created pursuant to s. 215.4725, or is engaged in a 378 boycott of Israel; or 379 (b)One million dollars or more if, at the time of bidding 380 on, submitting a proposal for, or entering into or renewing such 381 contract, the company or other entity: 382 1.Is on the Scrutinized Companies with Activities in Sudan 383 List or the Scrutinized Companies with Activities in Iran 384 Terrorism Sectors List, created pursuant to s. 215.473; or 385 2.Is engaged in business operations in Cuba or Syria. 386 (3)(a)Any contract with an agency or local governmental 387 entity for goods or services of $1 million or more entered into 388 or renewed on or after: 389 1.July 1, 2011, through June 30, 2012, must contain a 390 provision that allows for the termination of such contract at 391 the option of the awarding body if the company is found to have 392 submitted a false certification as provided under subsection (5) 393 or been placed on the Scrutinized Companies with Activities in 394 Sudan List or the Scrutinized Companies with Activities in the 395 Iran Petroleum Energy Sector List. 396 2.July 1, 2012, through September 30, 2016, must contain a 397 provision that allows for the termination of such contract at 398 the option of the awarding body if the company is found to have 399 submitted a false certification as provided under subsection 400 (5), been placed on the Scrutinized Companies with Activities in 401 Sudan List or the Scrutinized Companies with Activities in the 402 Iran Petroleum Energy Sector List, or been engaged in business 403 operations in Cuba or Syria. 404 3.October 1, 2016, through June 30, 2018, must contain a 405 provision that allows for the termination of such contract at 406 the option of the awarding body if the company: 407 a.Is found to have submitted a false certification as 408 provided under subsection (5); 409 b.Has been placed on the Scrutinized Companies that 410 Boycott Israel List, or is engaged in a boycott of Israel; 411 c.Has been placed on the Scrutinized Companies with 412 Activities in Sudan List or the Scrutinized Companies with 413 Activities in the Iran Petroleum Energy Sector List; or 414 d.Has been engaged in business operations in Cuba or 415 Syria. 416 4.July 1, 2018, must contain a provision that allows for 417 the termination of such contract at the option of the awarding 418 body if the company is found to have submitted a false 419 certification as provided under subsection (5), been placed on 420 the Scrutinized Companies with Activities in Sudan List, or been 421 engaged in business operations in Cuba or Syria. 422 5.July 1, 2018, must contain a provision that allows for 423 the termination of such contract at the option of the awarding 424 body if the company is found to have submitted a false 425 certification as provided under subsection (5) or has been 426 placed on a list created pursuant to s. 215.473, relating to 427 scrutinized active business operations in Iran. 428 (b)Any contract with an agency or local governmental 429 entity for goods or services of any amount entered into or 430 renewed on or after: 431 1.July 1, 2018, must contain a provision that allows for 432 the termination of such contract at the option of the awarding 433 body if the company is found to have been placed on the 434 Scrutinized Companies that Boycott Israel List or is engaged in 435 a boycott of Israel. 436 2.July 1, 2025, must contain a provision that allows for 437 the termination of such contract at the option of the awarding 438 body if the company or other entity is found to have been placed 439 on the Scrutinized Companies or Other Entities that Boycott 440 Israel List or is engaged in a boycott of Israel. 441 (4)Notwithstanding subsection (2) or subsection (3), an 442 agency or local governmental entity, on a case-by-case basis, 443 may allow a company on the Scrutinized Companies with Activities 444 in Sudan List, the Scrutinized Companies with Activities in the 445 Iran Petroleum Energy Sector List, or the Scrutinized Companies 446 with Activities in Iran Terrorism Sectors List, or a company 447 engaged in business operations in Cuba or Syria, to be eligible 448 for, bid on, submit a proposal for, or enter into or renew a 449 contract for goods or services of $1 million or more, or may 450 allow a company or other entity on the Scrutinized Companies or 451 Other Entities that Boycott Israel List to be eligible for, bid 452 on, submit a proposal for, or enter into or renew a contract for 453 goods or services of any amount, under the conditions set forth 454 in paragraph (a) or the conditions set forth in paragraph (b): 455 (a)1.With respect to a company on the Scrutinized 456 Companies with Activities in Sudan List, all of the following 457 occur: 458 a.The scrutinized business operations were made before 459 July 1, 2011. 460 b.The scrutinized business operations have not been 461 expanded or renewed after July 1, 2011. 462 c.The agency or local governmental entity determines that 463 it is in the best interest of the state or local community to 464 contract with the company. 465 d.The company has adopted, has publicized, and is 466 implementing a formal plan to cease scrutinized business 467 operations and to refrain from engaging in any new scrutinized 468 business operations. 469 2.With respect to a company engaged in business operations 470 in Cuba or Syria, all of the following occur: 471 a.The business operations were made before July 1, 2012. 472 b.The business operations have not been expanded or 473 renewed after July 1, 2012. 474 c.The agency or local governmental entity determines that 475 it is in the best interest of the state or local community to 476 contract with the company. 477 d.The company has adopted, has publicized, and is 478 implementing a formal plan to cease business operations and to 479 refrain from engaging in any new business operations. 480 3.With respect to a company or other entity on the 481 Scrutinized Companies or Other Entities that Boycott Israel 482 List, all of the following occur: 483 a.The boycott of Israel was initiated before October 1, 484 2016. 485 b.The company or other entity certifies in writing that it 486 has ceased its boycott of Israel. 487 c.The agency or local governmental entity determines that 488 it is in the best interest of the state or local community to 489 contract with the company or other entity. 490 d.The company or other entity has adopted, has publicized, 491 and is implementing a formal plan to cease scrutinized business 492 operations and to refrain from engaging in any new scrutinized 493 business operations. 494 4.With respect to a company on the Scrutinized Companies 495 with Activities in the Iran Petroleum Energy Sector List as of 496 November 6, 2023, all of the following occur: 497 a.The scrutinized business operations were made before 498 July 1, 2011. 499 b.The scrutinized business operations have not been 500 expanded or renewed after July 1, 2011. 501 c.The agency or local governmental entity determines that 502 it is in the best interest of the state or local community to 503 contract with the company. 504 d.The company has adopted, has publicized, and is 505 implementing a formal plan to cease scrutinized business 506 operations and to refrain from engaging in any new scrutinized 507 business operations. 508 5.With respect to a company on the Scrutinized Companies 509 with Activities in Iran Terrorism Sectors List other than those 510 companies included on the Scrutinized Companies with Activities 511 in the Iran Petroleum Energy Sector List as of November 6, 2023, 512 all of the following occur: 513 a.The scrutinized business operations were made before 514 January 10, 2024. 515 b.The scrutinized business operations have not been 516 expanded or renewed on or after January 10, 2024. 517 c.The agency or local governmental entity determines that 518 it is in the best interest of the state or local community to 519 contract with the company. 520 d.The company has adopted, has publicized, and is 521 implementing a formal plan to cease those scrutinized business 522 operations and to refrain from engaging in any new scrutinized 523 business operations. 524 (b)One of the following occurs: 525 1.The local governmental entity makes a public finding 526 that, absent such an exemption, the local governmental entity 527 would be unable to obtain the goods or services for which the 528 contract is offered. 529 2.For a contract with an executive agency, the Governor 530 makes a public finding that, absent such an exemption, the 531 agency would be unable to obtain the goods or services for which 532 the contract is offered. 533 3.For a contract with an office of a state constitutional 534 officer other than the Governor, the state constitutional 535 officer makes a public finding that, absent such an exemption, 536 the office would be unable to obtain the goods or services for 537 which the contract is offered. 538 (5)At the time a company submits a bid or proposal for a 539 contract or before the company enters into or renews a contract 540 with an agency or local governmental entity for goods or 541 services of $1 million or more, the company must certify that 542 the company is not on the Scrutinized Companies with Activities 543 in Sudan List or the Scrutinized Companies with Activities in 544 Iran Terrorism Sectors List and that it does not have business 545 operations in Cuba or Syria. At the time a company or other 546 entity submits a bid or proposal for a contract or before the 547 company or other entity enters into or renews a contract with an 548 agency or local governmental entity for goods or services of any 549 amount, the company or other entity must certify that the 550 company or other entity is not participating in a boycott of 551 Israel. 552 (a)If, after the agency or the local governmental entity 553 determines, using credible information available to the public, 554 that the company or other entity has submitted a false 555 certification, the agency or local governmental entity shall 556 provide the company or other entity with written notice of its 557 determination. The company or other entity shall have 90 days 558 following receipt of the notice to respond in writing and to 559 demonstrate that the determination of false certification was 560 made in error. If the company or other entity does not make such 561 demonstration within 90 days after receipt of the notice, the 562 agency or the local governmental entity shall bring a civil 563 action against the company or other entity. If a civil action is 564 brought and the court determines that the company or other 565 entity submitted a false certification, the company or other 566 entity shall pay the penalty described in subparagraph 1. and 567 all reasonable attorney fees and costs, including any costs for 568 investigations that led to the finding of false certification. 569 1.A civil penalty equal to the greater of $2 million or 570 twice the amount of the contract for which the false 571 certification was submitted shall be imposed. 572 2.The company or other entity is ineligible to bid on any 573 contract with an agency or local governmental entity for 3 years 574 after the date the agency or local governmental entity 575 determined that the company or other entity submitted a false 576 certification. 577 (b)A civil action to collect the penalties described in 578 paragraph (a) must commence within 3 years after the date the 579 false certification is submitted. 580 (6)Only the agency or local governmental entity that is a 581 party to the contract may cause a civil action to be brought 582 under this section. This section does not create or authorize a 583 private right of action or enforcement of the penalties provided 584 in this section. An unsuccessful bidder, or any other person 585 other than the agency or local governmental entity, may not 586 protest the award of a contract or contract renewal on the basis 587 of a false certification. 588 (7)This section preempts any ordinance or rule of any 589 agency or local governmental entity involving public contracts 590 for goods or services of: 591 (a)One million dollars or more with a company or other 592 entity engaged in scrutinized business operations. 593 (b)One hundred thousand dollars or more Any amount with a 594 company or other entity that has been placed on the Scrutinized 595 Companies or Other Entities that Boycott Israel List or is 596 engaged in a boycott of Israel. 597 (8)The contracting prohibitions in this section applicable 598 to companies on the Scrutinized Companies with Activities in 599 Sudan List or the Scrutinized Companies with Activities in Iran 600 Terrorism Sectors List or to companies engaged in business 601 operations in Cuba or Syria become inoperative on the date that 602 federal law ceases to authorize the states to adopt and enforce 603 such contracting prohibitions. 604 Section 4.This act shall take effect July 1, 2025.