Senate Engrossed

 

public entities; contracts; prohibition

 

 

 

 

State of Arizona

Senate

Fifty-sixth Legislature

First Regular Session

2023

 

 

 

SENATE BILL 1611

 

 

 

An Act

 

amending title 35, chapter 2, Arizona Revised Statutes, by adding article 4; relating to public monies.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 35, chapter 2, Arizona Revised Statutes, is amended by adding article 4, to read:

ARTICLE 4. PROHIBITED CONTRACTING

START_STATUTE35-351. Contracting; procurement; investment; prohibition; definitions

A. A public entity may not require, as a condition of entering into or renewing a contract with a company to acquire services, supplies, information technology, goods or construction services, that the company implement an environmental, social or governance standards policy.

B. A public entity may not adopt a procurement, investment or other policy that has the effect of inducing or requiring a company to implement an environmental, social or governance standards policy.

C. For the purposes of this section:

1. "Company" means an organization, association, corporation, partnership, joint venture, limited partnership, limited liability partnership, limited liability COMPANY or other entity or business association, including a wholly owned subsidiary, majority-owned subsidiary, parent company or affiliate, that engages in for-profit activity and that has ten or more full-time employees.

2. "environmental, social or governance standards policy" means a business policy that furthers any of the following:

(a) An international, domestic or industry agreement relating to an environmental or social goal.

(b) A corporate governance structure based on social characteristics.

(c) a social or environmental goal.

3. "public entity":

(a) Means this state, a political subdivision of this state or an agency, board, commission or department of this state or a political subdivision of this state.

(b) Includes the universities under the jurisdiction of the Arizona board of regents and community college districts as defined in section 15-1401. END_STATUTE