Senator Chris H. Wilson proposes the following substitute bill:


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 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          [(3)] (4) (a) "Company" means a corporation, partnership, limited liability company, or
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          [(4)] (7) "Public entity" means the state or a political subdivision of the state, including
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; [and]

88          (b) the company agrees not to engage in a boycott of the State of Israel for the duration
89     of the contract[.]; and
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          [(2)] (3) This section does not:
95          (a) apply to:
96          [(a)] (i) a contract with a total value of less than $100,000; or
97          [(b)] (ii) a contract with a company that has fewer than 10 full-time employees[.]; or
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.