63G-27 - Public Contract Boycott Restrictions

Title 63G > 63G-27

Sections (3)

General Provisions

63G-27-102 - Definitions.

As used in this chapter: 63G-27-102(1) “Boycott action” means refusing to deal, terminating business activities, or limiting commercial relations. 63G-27-102(2) “Boycott of the State of Israel” means engaging in a boycott action targeting:

the State of Israel; and companies or individuals doing business in or with the State of Israel; or companies authorized by, licensed by, or organized under the laws of the State of Israel to do business. 63G-27-102(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; or does not facilitate or commit to facilitate access to abortion or sex characteristic surgical procedures. 63G-27-102(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). 63G-27-102(5) “Economic boycott” means, without an ordinary business purpose:

engaging in a boycott action targeting: a boycotted company; or another company because the company does business with a boycotted company; or taking an action intended to penalize, inflict economic harm to, or change or limit the activities of: a boycotted company; or another company because the company does business with a boycotted company. 63G-27-102(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. 63G-27-102(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.

Prohibitions

63G-27-201 - Prohibition on contracting.

63G-27-201(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; or an economic boycott; the company agrees not to engage in a boycott of the State of Israel for the duration of the contract; and the company agrees to notify the public entity in writing if the company begins engaging in an economic boycott. 63G-27-201(2) A company’s notice under Subsection (1)(c) may be grounds for termination of the contract. 63G-27-201(3) This section does not:

apply to: a contract with a total value of less than $100,000; or a contract with a company that has fewer than 10 full-time employees; or prohibit 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; or meet the public entity’s legal duties to issue, incur, or manage debt obligations, or deposit, keep custody of, manage, borrow, or invest funds; or the company engages in the economic boycott to comply with federal law.

63G-27-202 - Prohibition on interference with state programs and commercial relationships.

63G-27-202(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). 63G-27-202(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.