1
2
3
4
5
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
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 corporate board, or employment, composition,
53 compensation, or disclosure criteria that incorporates race, color, sex, religion, ancestry, or
54 national origin;
55 (d) does not meet or commit to meet environmental standards, including standards for
56 eliminating, reducing, offsetting, or disclosing greenhouse gas-emissions, beyond applicable
57 state and federal law requirements; or
58 (e) does not facilitate or commit to facilitate access to abortion or sex characteristic
59 surgical procedures.
60 [
61 similar entity.
62 (b) "Company" includes any wholly-owned subsidiary, majority-owned subsidiary,
63 parent company, or affiliate of an entity described in Subsection (3)(a).
64 (5) "Economic boycott" means, without an ordinary business purpose:
65 (a) engaging in a boycott action targeting:
66 (i) a boycotted company; or
67 (ii) another company because the company does business with a boycotted company; or
68 (b) taking an action intended to penalize, inflict economic harm to, or change or limit
69 the activities of:
70 (i) a boycotted company; or
71 (ii) another company because the company does business with a boycotted company.
72 (6) (a) "Ordinary business purpose" means a purpose that is related to business
73 operations.
74 (b) "Ordinary business purpose" does not include a purpose that is solely related to
75 furthering social, political, or ideological interests.
76 [
77 each department, division, office, board, commission, council, authority, or institution of the
78 state or a political subdivision of the state.
79 Section 2. Section 63G-27-201 is amended to read:
80 63G-27-201. Prohibition on contracting.
81 (1) Except as provided in Subsection (2), a public entity may not enter into a contract
82 with a company to acquire or dispose of a good or service, including supplies, information
83 technology, or construction services, unless:
84 (a) the contract includes a written certification that the company is not currently
85 engaged in:
86 (i) a boycott of the State of Israel; or
87 (ii) an economic boycott; [
88 (b) the company agrees not to engage in a boycott of the State of Israel for the duration
89 of the contract[
90 (c) the company agrees to notify the public entity in writing if the company begins
91 engaging in an economic boycott.
92 (2) A company's notice under Subsection (1)(c) may be grounds for termination of the
93 contract.
94 [
95 (a) apply to:
96 [
97 [
98 (b) prohibit a public entity from entering into a contract with a company that engages
99 in an economic boycott if:
100 (i) there is no economically practicable alternative available to the public entity to:
101 (A) acquire or dispose of the good or service; or
102 (B) meet the public entity's legal duties to issue, incur, or manage debt obligations, or
103 deposit, keep custody of, manage, borrow, or invest funds; or
104 (ii) the company engages in the economic boycott to comply with federal law.
105 Section 3. Section 63G-27-202 is enacted to read:
106 63G-27-202. Prohibition on interference with state programs and commercial
107 relationships.
108 (1) A person may not take action to penalize or threaten to penalize a company because
109 the company enters into a contract that complies with Subsections 63G-27-201(1)(a)(ii) or (c).
110 (2) A person who takes an action or makes a threat in violation of Subsection (1)
111 interferes with the state's interest in administering state programs and maintaining commercial
112 relationships.
113 Section 4. Repealer.
114 This bill repeals:
115 Section 63G-27-101, Title.