Florida Senate - 2025 SB 1678
By Senator Leek
7-00756C-25 20251678__
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; revising the maximum percentage of the
23 hypothetical value of all assets under management by
24 the public fund which may be invested in scrutinized
25 companies or other entities under certain
26 circumstances; amending s. 265.286, F.S.; requiring
27 applicants to sign a certification form attesting they
28 comply with specified antidiscrimination laws and do
29 not engage in antisemitic discrimination;
30 disqualifying for a specified timeframe grant
31 applicants that engage in boycotts or antisemitic
32 discrimination; requiring recipients found to have
33 engaged in boycotts or antisemitic discrimination to
34 pay a specified penalty; authorizing individuals to
35 file a written complaint to the Attorney General for
36 not pursuing a cause of action within a specified
37 timeframe; requiring the Attorney General to provide a
38 written response within a specified timeframe;
39 amending s. 287.135, F.S.; revising the definition of
40 the term “awarding body”; revising the contract values
41 that prohibit a company or other entity from being
42 eligible to bid on, submit a proposal for, or enter
43 into or renew a contract with an agency or local
44 governmental entity; authorizing agencies and local
45 governmental entities to bid on, submit a proposal
46 for, or enter into or renew a contract for goods and
47 services with other entities that boycott Israel under
48 specified circumstances; requiring other entities to
49 submit a certain certification at the same time as
50 they submit a bid or proposal or enter into or renew a
51 contract with an agency or local governmental entity;
52 authorizing civil actions against companies and other
53 entities under specified conditions; providing an
54 effective date.
55
56 Be It Enacted by the Legislature of the State of Florida:
57
58 Section 1. Section 215.4725, Florida Statutes, is amended
59 to read:
60 215.4725 Prohibited investments by the State Board of
61 Administration; companies that boycott Israel.—
62 (1) DEFINITIONS.—As used in this section, the term:
63 (a) “Agency” means any of the various state officers,
64 departments, boards, commissions, divisions, bureaus, and
65 councils and any other unit of organization, however designated,
66 of the executive branch of state government.
67 (b) “Boycott Israel” or “boycott of Israel” means refusing
68 to deal, terminating business activities, or taking other
69 actions to limit commercial relations with Israel, or persons or
70 entities doing business in Israel or in Israeli-controlled
71 territories, in a discriminatory manner. A statement by a United
72 States or foreign company, an educational institution, a
73 nonprofit organization, an agency, a local governmental entity
74 or unit thereof, or a foreign government that it is
75 participating in a boycott of Israel, or that it has initiated a
76 boycott in response to a request for a boycott of Israel or in
77 compliance with, or in furtherance of, calls for a boycott of
78 Israel, may be considered by the State Board of Administration
79 to be evidence that the United States or foreign a company or
80 other entity is participating in a boycott of Israel. The term
81 includes taking adverse action, including changes to published
82 commercial financial ratings, risk ratings, and controversy
83 ratings based on nonpecuniary factors, to inflict economic harm
84 on Israel or persons or entities doing business in Israel or in
85 Israeli-controlled territories. The term includes trade
86 practices that are prohibited by federal regulations issued in
87 compliance with 50 U.S.C. s. 4842 and does not include trade
88 practices that are preempted by federal law. The term also
89 includes an academic boycott of Israel in which an educational
90 institution enacts or implements restrictive policies, or
91 otherwise participates in activities having the object or effect
92 of restricting ongoing or potential academic relationships, on
93 the basis of ties to the State of Israel or its academic,
94 educational, or research institutions, or by holding
95 researchers, students, prospective students, guest lecturers,
96 and artists-in-residence or institutions collectively liable for
97 any alleged objectionable conduct by the State of Israel. An
98 educational institution is deemed to have engaged in an academic
99 boycott of Israel if any of its departments, centers, or other
100 organs engages in a boycott, or, in the case of a foreign
101 educational institution, if any faculty union recognized by that
102 institution engages in a boycott.
103 (c)(b) “Company” means a sole proprietorship, organization,
104 association, corporation, partnership, joint venture, limited
105 partnership, limited liability partnership, limited liability
106 company, or other entity or business association, including all
107 wholly owned subsidiaries, majority-owned subsidiaries, and
108 parent companies, or affiliates, having more than 10 full-time
109 employees. The term does not include a natural person or a sole
110 proprietorship that exists for the purpose of making profit.
111 (d)(c) “Direct holdings” in a company means all securities
112 of that company that are held directly by the public fund or in
113 an account or fund in which the public fund owns all shares or
114 interests.
115 (e)(d) “Indirect holdings” in a company means all
116 securities of that company that are held in a commingled fund or
117 other collective investment, such as a mutual or index fund, in
118 which the public fund owns shares or interests, together with
119 other investors not subject to this section or which are held in
120 an index fund.
121 (f) “Local governmental entity” means a county,
122 municipality, special district, or other political subdivision.
123 (g) “Other entity” means a United States or foreign
124 educational institution, nonprofit organization, agency, a local
125 governmental entity or unit thereof, or a foreign government,
126 including any of its public investment funds, public pension
127 funds, sovereign wealth funds, or other government-sponsored
128 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 and includes
132 the endowment and retirement funds of the universities of the
133 State University System.
134 (i)(f) “Scrutinized companies or other entities” means
135 United States or foreign companies, educational institutions,
136 nonprofit organizations, and local governmental entities that
137 boycott Israel or engage in a boycott of Israel.
138 (2) IDENTIFICATION OF COMPANIES OR OTHER ENTITIES.—
139 (a) The public fund shall make its best efforts to identify
140 all scrutinized companies or other entities in which the public
141 fund has direct or indirect holdings or could possibly have such
142 holdings in the future. Such efforts include:
143 1. To the extent that the public fund finds it appropriate,
144 reviewing and relying on publicly available information
145 regarding companies or other entities that boycott Israel,
146 including information provided by nonprofit organizations,
147 research firms, international organizations, and government
148 entities;
149 2. Contacting asset managers contracted by the public fund
150 for information regarding companies or other entities that
151 boycott Israel; or
152 3. Contacting other institutional investors that prohibit
153 such investments or that have engaged with companies or other
154 entities that boycott Israel.
155 (b) By the first meeting of the public fund following the
156 identification of scrutinized companies in accordance with
157 paragraph (a), the public fund shall compile and make available
158 the “Scrutinized Companies or Other Entities that Boycott Israel
159 List.”
160 (c) The public fund shall update and make publicly
161 available quarterly the Scrutinized Companies or Other Entities
162 that Boycott Israel List based on evolving information from,
163 among other sources, those listed in paragraph (a).
164 (3) REQUIRED ACTIONS.—The public fund shall adhere to the
165 following procedures for assembling companies or other entities
166 on the Scrutinized Companies or Other Entities that Boycott
167 Israel List.
168 (a) Engagement.—
169 1. The public fund shall immediately determine the
170 companies or other entities on the Scrutinized Companies or
171 Other Entities that Boycott Israel List in which the public fund
172 owns direct or indirect holdings or with which the state
173 currently contracts or has a grant agreement, as detailed under
174 ss. 287.135 and 265.286, respectively.
175 2. For each company or other entity newly identified under
176 this paragraph, the public fund shall send a written notice
177 informing the company or other entity of its scrutinized company
178 status and that it may become subject to investment prohibition
179 or divestment by the public fund or may become barred from
180 future contracts or grants awarded by the state. The notice must
181 inform the company or other entity of the opportunity to clarify
182 its activities regarding the boycott of Israel and encourage the
183 company or other entity to cease the boycott of Israel within 90
184 days in order to avoid qualifying for investment prohibition or
185 divestment.
186 3. If, within 90 days after the public fund’s first
187 engagement with a company or other entity pursuant to this
188 paragraph, the company or other entity ceases a boycott of
189 Israel, the company or other entity shall be removed from the
190 Scrutinized Companies or Other Entities that Boycott Israel
191 List, and the provisions of this section ceases shall cease to
192 apply to that company or other entity unless that company or
193 other entity resumes a boycott of Israel.
194 (b) Divestment.—
195 1. If, after 90 days following the public fund’s first
196 engagement with a company or other entity pursuant to paragraph
197 (a), the company or other entity continues to boycott Israel,
198 the public fund must sell, redeem, divest, or withdraw all
199 publicly traded securities of the company or other entity from
200 the public fund within 12 months after the company’s or other
201 entity’s most recent appearance on the Scrutinized Companies or
202 Other Entities that Boycott Israel List.
203 2. If a company or other entity that ceased a boycott of
204 Israel following engagement pursuant to paragraph (a) resumes
205 such activities, this paragraph immediately applies, and the
206 public fund must send a written notice to the company or other
207 entity. The company or other entity must also be immediately
208 reintroduced onto the Scrutinized Companies or Other Entities
209 that Boycott Israel List, as applicable.
210 (c) Prohibition.—The public fund is prohibited from
211 acquiring securities of companies or other entities on the
212 Scrutinized Companies or Other Entities that Boycott Israel
213 List, except as provided in paragraph (d) and subsection (6).
214 The public fund may not acquire or hold the debt of a foreign
215 government if any of its public investment funds, public pension
216 funds, sovereign wealth funds, or other government-sponsored
217 investment funds are being used to support companies or other
218 entities that are engaged in a boycott of Israel.
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 fund’s 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 fund’s 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 scrutinized assets under management by the public fund
268 becomes equal to or less than 0.50 99.50 percent, or 50 basis
269 points, of the hypothetical value of all assets under management
270 by the public fund, assuming no investment prohibition or
271 divestment for any company or other entity had occurred under
272 subsection (3). Cessation of the investment prohibition or the
273 divestment, or reinvestment or any new investment, in a
274 scrutinized company or other entity is limited to the minimum
275 steps necessary to avoid the contingency described in this
276 subsection. For any cessation of the investment prohibition or
277 divestment, or reinvestment or new investment authorized by this
278 subsection, the public fund shall provide a written report to
279 each member of the Board of Trustees of the State Board of
280 Administration, the President of the Senate, and the Speaker of
281 the House of Representatives in advance of the cessation of
282 investment prohibition or the divestment, or reinvestment or new
283 investment, updated semiannually thereafter as applicable,
284 setting forth the reasons and justification, supported by clear
285 and convincing evidence, for its decisions to cease the
286 investment prohibition or divestment, or to reinvest in
287 scrutinized companies or other entities.
288 Section 2. Paragraph (c) of subsection (6) of section
289 265.286, Florida Statutes, is amended, and paragraphs (d) and
290 (e) are added to that subsection, to read:
291 265.286 Art and cultural grants.—
292 (6) The division shall adopt rules establishing:
293 (c) The panel review process, including, but not limited
294 to, criteria for reviewing grant applications to ensure
295 compliance with applicable federal and state law, including
296 those related to discrimination and conflicts of interest. For
297 the purposes of satisfying the nondiscrimination requirements of
298 this section, all applicants must sign a certification form
299 attesting to the fact that they are complying with all relevant
300 antidiscrimination laws, including the anti-boycott rules of
301 this state pursuant to ss. 215.4725 and 287.135, and will not
302 engage in antisemitic discrimination as defined by s. 1.015,
303 including refusals to deal based on an individual’s or entity’s
304 real or perceived connection to the State of Israel, for the
305 duration of the program or project for which their grant is
306 awarded. The division may not award any new grant that will, in
307 whole or in part, inure to the personal benefit of any council
308 or review panel member during the member’s term of office if the
309 council or panel member participated in the vote of the council
310 or panel recommending the award. This paragraph does not
311 prohibit the division from awarding a grant to an entity with
312 which a council or panel member is associated.
313 (d) Grant applicants found to be engaging in any boycott
314 action or antisemitic discrimination shall be disqualified from
315 grant eligibility until 10 years after any such action has
316 ceased. Grant recipients found to have engaged in a boycott of
317 Israel or antisemitic discrimination during the duration of the
318 project or program for which their grant was awarded shall be
319 subject to a penalty payable to the State Treasury of three
320 times the amount of the grant received for which the false
321 certification was submitted.
322 (e) If the Attorney General fails to pursue a cause of
323 action within 90 days after a violation of paragraph (c),
324 individuals have the right to file a written complaint to the
325 Attorney General, who in turn will be required to provide a
326 written response within 30 days after receipt of the complaint.
327 Section 3. Section 287.135, Florida Statutes, is amended to
328 read:
329 287.135 Prohibition against contracting with scrutinized
330 companies or entities.—
331 (1) In addition to the terms defined in ss. 287.012 and
332 215.473, as used in this section, the term:
333 (a) “Awarding body” means, for purposes of state contracts,
334 an agency or the department, and for purposes of local
335 contracts, the governing body of the local governmental entity.
336 (b) “Boycott of Israel” has the same meaning as defined in
337 s. 215.4725.
338 (c) “Business operations” means, for purposes specifically
339 related to Cuba or Syria, engaging in commerce in any form in
340 Cuba or Syria, including, but not limited to, acquiring,
341 developing, maintaining, owning, selling, possessing, leasing,
342 or operating equipment, facilities, personnel, products,
343 services, personal property, real property, military equipment,
344 or any other apparatus of business or commerce.
345 (d) “Local governmental entity” means a county,
346 municipality, special district, or other political subdivision
347 of the state.
348 (2) A company or other entity is ineligible to, and may
349 not, bid on, submit a proposal for, or enter into or renew a
350 contract with an agency or local governmental entity for goods
351 or services of:
352 (a) One hundred thousand dollars or more Any amount if, at
353 the time of bidding on, submitting a proposal for, or entering
354 into or renewing such contract, the company or other entity is
355 on the Scrutinized Companies or Other Entities that Boycott
356 Israel List, created pursuant to s. 215.4725, or is engaged in a
357 boycott of Israel; or
358 (b) One thousand dollars or more, in the case of a foreign
359 educational institution, including tuition payments made
360 directly to such institutions by students receiving study abroad
361 credit at state colleges and universities, if, at the time of
362 bidding on, submitting a proposal for, or entering into or
363 renewing such contract, the foreign educational institution is
364 on the Scrutinized Companies and Other Entities that Boycott
365 Israel List, created pursuant to s. 215.4725, or is engaged in a
366 boycott of Israel; or
367 (c) One million dollars or more if, at the time of bidding
368 on, submitting a proposal for, or entering into or renewing such
369 contract, the company or other entity:
370 1. Is on the Scrutinized Companies with Activities in Sudan
371 List or the Scrutinized Companies with Activities in Iran
372 Terrorism Sectors List, created pursuant to s. 215.473; or
373 2. Is engaged in business operations in Cuba or Syria.
374 (3)(a) Any contract with an agency or local governmental
375 entity for goods or services of $1 million or more entered into
376 or renewed on or after:
377 1. July 1, 2011, through June 30, 2012, must contain a
378 provision that allows for the termination of such contract at
379 the option of the awarding body if the company is found to have
380 submitted a false certification as provided under subsection (5)
381 or been placed on the Scrutinized Companies with Activities in
382 Sudan List or the Scrutinized Companies with Activities in the
383 Iran Petroleum Energy Sector List.
384 2. July 1, 2012, through September 30, 2016, must contain a
385 provision that allows for the termination of such contract at
386 the option of the awarding body if the company is found to have
387 submitted a false certification as provided under subsection
388 (5), been placed on the Scrutinized Companies with Activities in
389 Sudan List or the Scrutinized Companies with Activities in the
390 Iran Petroleum Energy Sector List, or been engaged in business
391 operations in Cuba or Syria.
392 3. October 1, 2016, through June 30, 2018, must contain a
393 provision that allows for the termination of such contract at
394 the option of the awarding body if the company:
395 a. Is found to have submitted a false certification as
396 provided under subsection (5);
397 b. Has been placed on the Scrutinized Companies or Other
398 Entities that Boycott Israel List, or is engaged in a boycott of
399 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 or other entity is found to have submitted a
408 false certification as provided under subsection (5), been
409 placed on the Scrutinized Companies with Activities in Sudan
410 List, or been 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 or other entity is found to have submitted a
414 false 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 July 1, 2018, must contain a provision that
420 allows for the termination of such contract at the option of the
421 awarding body if the company or other entity is found to have
422 been placed on the Scrutinized Companies or Other Entities that
423 Boycott Israel List or is engaged in a boycott of Israel.
424 (4) Notwithstanding subsection (2) or subsection (3), an
425 agency or local governmental entity, on a case-by-case basis,
426 may allow a company on the Scrutinized Companies with Activities
427 in Sudan List, the Scrutinized Companies with Activities in the
428 Iran Petroleum Energy Sector List, or the Scrutinized Companies
429 with Activities in Iran Terrorism Sectors List, or a company
430 engaged in business operations in Cuba or Syria, to be eligible
431 for, bid on, submit a proposal for, or enter into or renew a
432 contract for goods or services of $1 million or more, or may
433 allow a company or other entity on the Scrutinized Companies or
434 Other Entities that Boycott Israel List to be eligible for, bid
435 on, submit a proposal for, or enter into or renew a contract for
436 goods or services of any amount, under the conditions set forth
437 in paragraph (a) or the conditions set forth in paragraph (b):
438 (a)1. With respect to a company on the Scrutinized
439 Companies with Activities in Sudan List, all of the following
440 occur:
441 a. The scrutinized business operations were made before
442 July 1, 2011.
443 b. The scrutinized business operations have not been
444 expanded or renewed after July 1, 2011.
445 c. The agency or local governmental entity determines that
446 it is in the best interest of the state or local community to
447 contract with the company.
448 d. The company has adopted, has publicized, and is
449 implementing a formal plan to cease scrutinized business
450 operations and to refrain from engaging in any new scrutinized
451 business operations.
452 2. With respect to a company engaged in business operations
453 in Cuba or Syria, all of the following occur:
454 a. The business operations were made before July 1, 2012.
455 b. The business operations have not been expanded or
456 renewed after July 1, 2012.
457 c. The agency or local governmental entity determines that
458 it is in the best interest of the state or local community to
459 contract with the company.
460 d. The company has adopted, has publicized, and is
461 implementing a formal plan to cease business operations and to
462 refrain from engaging in any new business operations.
463 3. With respect to a company or other entity on the
464 Scrutinized Companies or Other Entities that Boycott Israel
465 List, all of the following occur:
466 a. The boycott of Israel was initiated before October 1,
467 2016.
468 b. The company or other entity certifies in writing that it
469 has ceased its boycott of Israel.
470 c. The agency or local governmental entity determines that
471 it is in the best interest of the state or local community to
472 contract with the company or other entity.
473 d. The company or other entity has adopted, has publicized,
474 and is implementing a formal plan to cease scrutinized business
475 operations and to refrain from engaging in any new scrutinized
476 business operations.
477 4. With respect to a company on the Scrutinized Companies
478 with Activities in the Iran Petroleum Energy Sector List as of
479 November 6, 2023, all of the following occur:
480 a. The scrutinized business operations were made before
481 July 1, 2011.
482 b. The scrutinized business operations have not been
483 expanded or renewed after July 1, 2011.
484 c. The agency or local governmental entity determines that
485 it is in the best interest of the state or local community to
486 contract with the company.
487 d. The company has adopted, has publicized, and is
488 implementing a formal plan to cease scrutinized business
489 operations and to refrain from engaging in any new scrutinized
490 business operations.
491 5. With respect to a company on the Scrutinized Companies
492 with Activities in Iran Terrorism Sectors List other than those
493 companies included on the Scrutinized Companies with Activities
494 in the Iran Petroleum Energy Sector List as of November 6, 2023,
495 all of the following occur:
496 a. The scrutinized business operations were made before
497 January 10, 2024.
498 b. The scrutinized business operations have not been
499 expanded or renewed on or after January 10, 2024.
500 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 those scrutinized business
505 operations and to refrain from engaging in any new scrutinized
506 business operations.
507 (b) One of the following occurs:
508 1. The local governmental entity makes a public finding
509 that, absent such an exemption, the local governmental entity
510 would be unable to obtain the goods or services for which the
511 contract is offered.
512 2. For a contract with an executive agency, the Governor
513 makes a public finding that, absent such an exemption, the
514 agency would be unable to obtain the goods or services for which
515 the contract is offered.
516 3. For a contract with an office of a state constitutional
517 officer other than the Governor, the state constitutional
518 officer makes a public finding that, absent such an exemption,
519 the office would be unable to obtain the goods or services for
520 which the contract is offered.
521 (5) At the time a company submits a bid or proposal for a
522 contract or before the company enters into or renews a contract
523 with an agency or local governmental entity for goods or
524 services of $1 million or more, the company must certify that
525 the company is not on the Scrutinized Companies with Activities
526 in Sudan List or the Scrutinized Companies with Activities in
527 Iran Terrorism Sectors List and that it does not have business
528 operations in Cuba or Syria. At the time a company or other
529 entity submits a bid or proposal for a contract or before the
530 company or other entity enters into or renews a contract with an
531 agency or local governmental entity for goods or services of any
532 amount, the company or other entity must certify that the
533 company or other entity is not participating in a boycott of
534 Israel.
535 (a) If, after the agency or the local governmental entity
536 determines, using credible information available to the public,
537 that the company or other entity has submitted a false
538 certification, the agency or local governmental entity shall
539 provide the company or other entity with written notice of its
540 determination. The company or other entity shall have 90 days
541 following receipt of the notice to respond in writing and to
542 demonstrate that the determination of false certification was
543 made in error. If the company or other entity does not make such
544 demonstration within 90 days after receipt of the notice, the
545 agency or the local governmental entity shall bring a civil
546 action against the company or other entity. If a civil action is
547 brought and the court determines that the company or other
548 entity submitted a false certification, the company or other
549 entity shall pay the penalty described in subparagraph 1. and
550 all reasonable attorney fees and costs, including any costs for
551 investigations that led to the finding of false certification.
552 1. A civil penalty equal to the greater of $2 million or
553 twice the amount of the contract for which the false
554 certification was submitted shall be imposed.
555 2. The company or other entity is ineligible to bid on any
556 contract with an agency or local governmental entity for 3 years
557 after the date the agency or local governmental entity
558 determined that the company or other entity submitted a false
559 certification.
560 (b) A civil action to collect the penalties described in
561 paragraph (a) must commence within 3 years after the date the
562 false certification is submitted.
563 (6) Only the agency or local governmental entity that is a
564 party to the contract may cause a civil action to be brought
565 under this section. This section does not create or authorize a
566 private right of action or enforcement of the penalties provided
567 in this section. An unsuccessful bidder, or any other person
568 other than the agency or local governmental entity, may not
569 protest the award of a contract or contract renewal on the basis
570 of a false certification.
571 (7) This section preempts any ordinance or rule of any
572 agency or local governmental entity involving public contracts
573 for goods or services of:
574 (a) One million dollars or more with a company or other
575 entity engaged in scrutinized business operations.
576 (b) Any amount with a company or other entity that has been
577 placed on the Scrutinized Companies or Other Entities that
578 Boycott Israel List or is engaged in a boycott of Israel.
579 (8) The contracting prohibitions in this section applicable
580 to companies on the Scrutinized Companies with Activities in
581 Sudan List or the Scrutinized Companies with Activities in Iran
582 Terrorism Sectors List or to companies engaged in business
583 operations in Cuba or Syria become inoperative on the date that
584 federal law ceases to authorize the states to adopt and enforce
585 such contracting prohibitions.
586 Section 4. This act shall take effect July 1, 2025.