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ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
Israel boycott divestments
Purpose
Limits the prohibition on public contracts with a company boycotting goods and services from Israel to contracts of $100,000 or more.
Background
Federal law authorizes the issuance of regulations prohibiting any United States person, with respect to the activities of that person in the interstate or foreign commerce of the United States, from taking or knowingly agreeing to take certain actions with the intent to comply with, further or support any boycott fostered or imposed by a foreign country against a country that is friendly to the United States and which is not itself the object of any form of boycott pursuant to United States law or regulation (50 U.S.C. § 4842).
Current statute prohibits a public entity from entering into any contract with a company to acquire or dispose of services, supplies, information technology or construction unless the contract includes a written certification that the company is not currently engaged in, and agrees for the duration of the contract to not engage in, a boycott of Israel (A.R.S § 35-393.01).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Limits the prohibition on public contracts to acquire or dispose of services, supplies, information technology or construction, with a company boycotting goods and services from Israel, to contracts with a value of $100,000 or more.
2. Specifies that a company's written certification applies to a boycott of goods or services integral to their business in Arizona.
3. Specifies that Israel boycott divestments does not apply to boycotts prohibited by federal law.
4. Removes, from the definition of company, a sole proprietorship and specifies that only a company with at least 10 full-time employees meets the definition.
5. Modifies the definition of boycott to include actions that are taken based in part on the fact that the entity does business in Israel or in territories controlled by Israel.
6. Makes technical and conforming changes.
7. Becomes effective on the general effective date.
Prepared by Senate Research
January 29, 2019
MG/gs