The bill prohibits governmental entities in Alabama from entering into contracts with companies that engage in economic boycotts against businesses based on their involvement in certain sectors, such as fossil fuels, firearms, or those that do not meet specific environmental or corporate governance standards. It mandates that any contract between a governmental entity and a company with ten or more employees and a value of at least $15,000 must include a written verification that the company will not engage in economic boycotts during the contract term. Exceptions to this requirement are provided for contracts related to financial services and situations where compliance would significantly increase costs or limit service quality.

Additionally, the bill stipulates that no company in Alabama can be compelled or penalized by a governmental entity for refusing to participate in economic boycotts or for not adhering to policies that further social, political, or ideological interests. The Attorney General is tasked with enforcing this act and preventing federal actions that may harm companies in the state based on economic boycott criteria. The act will take effect on October 1, 2023, and includes provisions for severability in case any part of it is deemed invalid.

Statutes affected:
Introduced: 8-19-9