Enrolled Copy S.B. 97
1 PUBLIC CONTRACT REQUIREMENTS
2 2023 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Chris H. Wilson
5 House Sponsor: Rex P. Shipp
6
7 LONG TITLE
8 General Description:
9 This bill addresses public entity contract requirements.
10 Highlighted Provisions:
11 This bill:
12 < defines terms;
13 < subject to exceptions, prohibits a public entity from entering into a contract with a
14 company that engages in certain boycott actions;
15 < prohibits a person from penalizing a company that agrees not to engage in certain
16 boycott actions while under contract with a public entity;
17 < provides that a person who penalizes a company for agreeing not to engage in
18 certain boycott actions while under contract with a public entity interferes with the
19 state's interest in administering state programs and maintaining commercial
20 relationships; and
21 < makes technical and conforming changes.
22 Money Appropriated in this Bill:
23 None
24 Other Special Clauses:
25 None
26 Utah Code Sections Affected:
27 AMENDS:
28 63G-27-102, as enacted by Laws of Utah 2021, Chapter 347
29 63G-27-201, as enacted by Laws of Utah 2021, Chapter 347
S.B. 97 Enrolled Copy
30 ENACTS:
31 63G-27-202, Utah Code Annotated 1953
32 REPEALS:
33 63G-27-101, as enacted by Laws of Utah 2021, Chapter 347
34
35 Be it enacted by the Legislature of the state of Utah:
36 Section 1. Section 63G-27-102 is amended to read:
37 CHAPTER 27. PUBLIC CONTRACT BOYCOTT RESTRICTIONS
38 63G-27-102. Definitions.
39 As used in this chapter:
40 (1) "Boycott action" means refusing to deal, terminating business activities, or limiting
41 commercial relations.
42 (2) "Boycott of the State of Israel" means engaging in a boycott action targeting:
43 (a) the State of Israel; and
44 (b) (i) companies or individuals doing business in or with the State of Israel; or
45 (ii) companies authorized by, licensed by, or organized under the laws of the State of
46 Israel to do business.
47 (3) "Boycotted company" means a company that:
48 (a) engages in the exploration, production, utilization, transportation, sale, or
49 manufacture of fossil fuel-based energy, timber, mining, or agriculture;
50 (b) engages in, facilitates, or supports the manufacture, distribution, sale, or use of
51 firearms;
52 (c) does not meet or commit to meet environmental standards, including standards for
53 eliminating, reducing, offsetting, or disclosing greenhouse gas-emissions, beyond applicable
54 state and federal law requirements; or
55 (d) does not facilitate or commit to facilitate access to abortion or sex characteristic
56 surgical procedures.
57 [(3)] (4) (a) "Company" means a corporation, partnership, limited liability company, or
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Enrolled Copy S.B. 97
58 similar entity.
59 (b) "Company" includes any wholly-owned subsidiary, majority-owned subsidiary,
60 parent company, or affiliate of an entity described in Subsection [(3)(a)] (4)(a).
61 (5) "Economic boycott" means, without an ordinary business purpose:
62 (a) engaging in a boycott action targeting:
63 (i) a boycotted company; or
64 (ii) another company because the company does business with a boycotted company; or
65 (b) taking an action intended to penalize, inflict economic harm to, or change or limit
66 the activities of:
67 (i) a boycotted company; or
68 (ii) another company because the company does business with a boycotted company.
69 (6) (a) "Ordinary business purpose" means a purpose that is related to business
70 operations.
71 (b) "Ordinary business purpose" does not include a purpose that is solely related to
72 furthering social, political, or ideological interests.
73 [(4)] (7) "Public entity" means the state or a political subdivision of the state, including
74 each department, division, office, board, commission, council, authority, or institution of the
75 state or a political subdivision of the state.
76 Section 2. Section 63G-27-201 is amended to read:
77 63G-27-201. Prohibition on contracting.
78 (1) Except as provided in Subsection [(2)] (3), a public entity may not enter into a
79 contract with a company to acquire or dispose of a good or service, including supplies,
80 information technology, or construction services, unless:
81 (a) the contract includes a written certification that the company is not currently
82 engaged in:
83 (i) a boycott of the State of Israel; or
84 (ii) an economic boycott; [and]
85 (b) the company agrees not to engage in a boycott of the State of Israel for the duration
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86 of the contract[.]; and
87 (c) the company agrees to notify the public entity in writing if the company begins
88 engaging in an economic boycott.
89 (2) A company's notice under Subsection (1)(c) may be grounds for termination of the
90 contract.
91 [(2)] (3) This section does not:
92 (a) apply to:
93 [(a)] (i) a contract with a total value of less than $100,000; or
94 [(b)] (ii) a contract with a company that has fewer than 10 full-time employees[.]; or
95 (b) prohibit a public entity from entering into a contract with a company that engages
96 in an economic boycott if:
97 (i) there is no economically practicable alternative available to the public entity to:
98 (A) acquire or dispose of the good or service; or
99 (B) meet the public entity's legal duties to issue, incur, or manage debt obligations, or
100 deposit, keep custody of, manage, borrow, or invest funds; or
101 (ii) the company engages in the economic boycott to comply with federal law.
102 Section 3. Section 63G-27-202 is enacted to read:
103 63G-27-202. Prohibition on interference with state programs and commercial
104 relationships.
105 (1) A person may not take action to penalize or threaten to penalize a company because
106 the company enters into a contract that complies with Subsections 63G-27-201(1)(a)(ii) or (c).
107 (2) A person who takes an action or makes a threat in violation of Subsection (1)
108 interferes with the state's interest in administering state programs and maintaining commercial
109 relationships.
110 Section 4. Repealer.
111 This bill repeals:
112 Section 63G-27-101, Title.
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Statutes affected: Introduced: 63G-27-102, 63G-27-201
Amended: 63G-27-102, 63G-27-201
Enrolled: 63G-27-102, 63G-27-201
S.B. 97 1st Substitute (Not Adopted) Text: 63G-27-102, 63G-27-201