SPONSOR: Sparks
This bill proposes to regulate state contracts with companies, specifically addressing economic boycotts. The contractual requirements, exceptions, and enforcement measures, including penalties for violations are specified in the bill.
The bill defines the following terms: "company", "economic boycott", "government entity", and "ordinary business purpose".
This bill specifies that its provisions apply exclusively to contracts meeting two criteria:
(1) The contract must be between a governmental entity and a company with ten or more full-time employees, and
(2) The contract's value must be $50,000 or more, with payment either wholly or partially funded by the public funds of the governmental entity. Additionally, in the case of multiple party contracts, the stipulations of this bill apply individually to each company involved in the contract.
Any governmental entity is prohibited from entering into a contract with a company unless the contract contains a written verification that the company does not engage in economic boycotts and will not do so during the contract term. The bill provides exceptions for governmental entities if the requirements are inconsistent with constitutional or statutory duties or if they hinder the entity from obtaining supplies or services economically.
This bill prohibits any party from penalizing or threatening to penalize a financial institution for compliance with the bill.
The bill specifies that the regulations in this bill shall be enforcement by the Attorney General or a county prosecutor. The Attorney General or prosecutor has the authority to require statements, examine individuals, and impound records related to potential violations.
This bill imposes penalties on companies engaging in economic boycotts during the contract term, requiring payment to the state equal to three times the amount paid under the contract.
Statutes affected: