The bill aims to prohibit 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 establishes that no company shall be required or penalized by a governmental entity for refusing to participate in such boycotts or for not adhering to policies that further social, political, or ideological interests. The bill also mandates that contracts between governmental entities and companies with ten or more employees, involving public funds of at least $15,000, must include a written verification that the company will not engage in economic boycotts during the contract term.

Additionally, the Attorney General is tasked with preventing federal actions that may penalize or harm companies in Alabama based on their compliance with economic boycott criteria. The bill includes provisions for waiving requirements if compliance would significantly increase costs or limit service quality, and it allows the Attorney General to investigate violations and enforce the act. The act will take effect on October 1, 2023, and applies only to contracts entered into after that date.

Statutes affected:
Introduced: 8-19-9