63G-27 - Public Contract Boycott Restrictions
Title 63G > 63G-27
Sections (3)
General Provisions
63G-27-102 - Definitions.
As used in this chapter:
(1) “Boycott action” means refusing to deal, terminating business activities, or limiting commercial relations.
(2) “Boycott of the State of Israel” means engaging in a boycott action targeting: the State of Israel; andcompanies or individuals doing business in or with the State of Israel; orcompanies authorized by, licensed by, or organized under the laws of the State of Israel to do business.
(3) “Boycotted company” means a company that: engages in the exploration, production, utilization, transportation, sale, or manufacture of fossil fuel-based energy, timber, mining, or agriculture;engages in, facilitates, or supports the manufacture, distribution, sale, or use of firearms;does not meet or commit to meet environmental standards, including standards for eliminating, reducing, offsetting, or disclosing greenhouse gas-emissions, beyond applicable state and federal law requirements; ordoes not facilitate or commit to facilitate access to abortion or sex characteristic surgical procedures.
(4) “Company” means a corporation, partnership, limited liability company, or similar entity.”Company” includes any wholly-owned subsidiary, majority-owned subsidiary, parent company, or affiliate of an entity described in Subsection (4)(a).
(5) “Economic boycott” means, without an ordinary business purpose: engaging in a boycott action targeting:a boycotted company; oranother company because the company does business with a boycotted company; ortaking an action intended to penalize, inflict economic harm to, or change or limit the activities of:a boycotted company; oranother company because the company does business with a boycotted company.
(6) “Ordinary business purpose” means a purpose that is related to business operations.”Ordinary business purpose” does not include a purpose that is solely related to furthering social, political, or ideological interests.
(7) “Public entity” means the state or a political subdivision of the state, including each department, division, office, board, commission, council, authority, or institution of the state or a political subdivision of the state.
Amended by Chapter 243, 2023 General Session
Prohibitions
63G-27-201 - Prohibition on contracting.
(1) Except as provided in Subsection (3), a public entity may not enter into a contract with a company to acquire or dispose of a good or service, including supplies, information technology, or construction services, unless: the contract includes a written certification that the company is not currently engaged in:a boycott of the State of Israel; oran economic boycott;the company agrees not to engage in a boycott of the State of Israel for the duration of the contract; andthe company agrees to notify the public entity in writing if the company begins engaging in an economic boycott.
(2) A company’s notice under Subsection (1)(c) may be grounds for termination of the contract.
(3) This section does not: apply to:a contract with a total value of less than $100,000; ora contract with a company that has fewer than 10 full-time employees; orprohibit a public entity from entering into a contract with a company that engages in an economic boycott if:there is no economically practicable alternative available to the public entity to: acquire or dispose of the good or service; ormeet the public entity’s legal duties to issue, incur, or manage debt obligations, or deposit, keep custody of, manage, borrow, or invest funds; orthe company engages in the economic boycott to comply with federal law.
Amended by Chapter 243, 2023 General Session
63G-27-202 - Prohibition on interference with state programs and commercial relationships.
(1) A person may not take action to penalize or threaten to penalize a company because the company enters into a contract that complies with Subsections 63G-27-201(1)(a)(ii) or (c).
(2) A person who takes an action or makes a threat in violation of Subsection (1) interferes with the state’s interest in administering state programs and maintaining commercial relationships.
Enacted by Chapter 243, 2023 General Session