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 in the state 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 bill also mandates that the Attorney General take action to prevent federal laws from penalizing or harming companies in Alabama based on these economic boycott criteria.

Key provisions include a requirement for companies with contracts worth $15,000 or more with governmental entities to provide written verification that they will not engage in economic boycotts during the contract term. However, exceptions are made for certain types of contracts, such as those related to debt management or insurance procurement. The Attorney General is granted the authority to investigate violations of the act and enforce its provisions, while companies can seek injunctive relief if the Attorney General declines to act. The act is set to take effect on October 1, 2023, and includes severability clauses to ensure that if any part is deemed invalid, the remainder remains in effect.

Statutes affected:
Introduced: 8-19-9