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:
62 215.4725 Prohibited 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 fund’s 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 fund’s 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 company’s or other
198 entity’s 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 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 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:
299 265.286 Art 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 individual’s or entity’s
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 member’s 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:
339 287.135 Prohibition 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.