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

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

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

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.