1     
PUBLIC CONTRACT REQUIREMENTS

2     
2023 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Chris H. Wilson

5     
House Sponsor: Rex P. Shipp

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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 who engages in certain environmental boycott actions; and
15          ▸     makes technical and conforming changes.
16     Money Appropriated in this Bill:
17          None
18     Other Special Clauses:
19          None
20     Utah Code Sections Affected:
21     AMENDS:
22          63G-27-102, as enacted by Laws of Utah 2021, Chapter 347
23          63G-27-201, as enacted by Laws of Utah 2021, Chapter 347
24     REPEALS:
25          63G-27-101, as enacted by Laws of Utah 2021, Chapter 347
26     

27     Be it enacted by the Legislature of the state of Utah:

28          Section 1. Section 63G-27-102 is amended to read:
29     
CHAPTER 27. PUBLIC CONTRACT BOYCOTT RESTRICTIONS

30          63G-27-102. Definitions.
31          As used in this chapter:
32          (1) "Boycott action" means refusing to deal, terminating business activities, or limiting
33     commercial relations.
34          (2) "Boycott of the State of Israel" means engaging in a boycott action targeting:
35          (a) the State of Israel; and
36          (b) (i) companies or individuals doing business in or with the State of Israel; or
37          (ii) companies authorized by, licensed by, or organized under the laws of the State of
38     Israel to do business.
39          (3) (a) "Company" means a corporation, partnership, limited liability company, or
40     similar entity.
41          (b) "Company" includes any wholly-owned subsidiary, majority-owned subsidiary,
42     parent company, or affiliate of an entity described in Subsection (3)(a).
43          (4) "Environmental boycott" means engaging in a boycott action targeting a company
44     that:
45          (a) engages in the exploration, production, utilization, transportation, sale, or
46     manufacture of fossil fuels or fossil fuel byproducts;
47          (b) engages in production agriculture; or
48          (c) does not meet or commit to meet environmental standards, including standards for
49     eliminating, reducing, offsetting, or disclosing greenhouse gas-emissions, beyond applicable
50     state and federal law requirements.
51          (5) "Public entity" means the state or a political subdivision of the state, including each
52     department, division, office, board, commission, council, authority, or institution of the state or
53     a political subdivision of the state.
54          Section 2. Section 63G-27-201 is amended to read:
55          63G-27-201. Prohibition on contracting.
56          (1) Except as provided in Subsection (2), a public entity may not enter into a contract
57     with a company to acquire or dispose of a good or service, including supplies, information
58     technology, or construction services, unless:

59          (a) the contract includes a written certification that the company is not currently
60     engaged in a boycott of the State of Israel or an environmental boycott; and
61          (b) the company agrees not to engage in a boycott of the State of Israel or an
62     environmental boycott for the duration of the contract.
63          (2) This section does not apply to:
64          (a) a contract with a total value of less than $100,000; or
65          (b) a contract with a company that has fewer than 10 full-time employees.
66          Section 3. Repealer.
67          This bill repeals:
68          Section 63G-27-101, Title.