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S.F. No. 247 - State Vendor Contracts Israel Boycott Prohibition - First Engrossment
 
Author: Senator Warren Limmer
 
Prepared By: Stephanie James, Senate Counsel (651/296-0103)
 
Date: February 14, 2017



 

Section 1 [Contracts with Vendors Who Discriminate Against Israel Prohibited]

Subd. 1 [Discrimination by vendor] precludes the legislature from contracting with a vendor who discriminates against Israel or who discriminates against persons or entities doing business in Israel. Vendor contracts must require vendors to certify compliance and must permit immediate termination of the contract, without penalty, should the vendor discriminate against Israel or persons or entities doing business in Israel.

This section defines discrimination.  Discrimination includes but is not limited to:

  • engaging in refusals to deal;
  • terminating business activities;
  • other actions intended to limit commercial relations with Israel, or persons or entities doing business in Israel when such actions are taken;
  • in response to calls for discrimination against or a boycott of Israel, unless preempted by certain federal law regarding foreign boycotts; or
  • in a manner that discriminates on the basis of nationality or national origin and is not based on a valid business reason.

Subd. 2 [Exemption; commissioner may waive] This section does not apply to contracts with a value of less than $1,000 or if the legislature determines that compliance is not practicable or in the best interests of the state.

Subd. 3 [Relation to existing law] states that this section does not prohibit a vendor from engaging in free speech.

Section 2 [Contracts with Vendors Who Discriminate Against Israel Prohibited]

Subd. 1 [Discrimination by vendor] precludes state agencies from contracting with a vendor who discriminates against Israel or who discriminates against persons or entities doing business in Israel. Vendor contracts must require vendors to certify compliance and must permit immediate termination of the contract, without penalty, should the vendor discriminate against Israel or persons or entities doing business in Israel.

This section defines discrimination.  Discrimination includes but is not limited to:

  • engaging in refusals to deal;
  • terminating business activities;
  • other actions intended to limit commercial relations with Israel, or persons or entities doing business in Israel when such actions are taken;
  • in response to calls for discrimination against or a boycott of Israel, unless preempted by certain federal law regarding foreign boycotts; or
  • in a manner that discriminates on the basis of nationality or national origin and is not based on a valid business reason.

Subd. 2 [Exemption; commissioner may waive] This section does not apply to contracts with a value of less than $1,000 or if the commissioner of administration determines that compliance is not practicable or in the best interests of the state. 

Subd. 3 [Relation to existing law] states that this section does not prohibit a vendor from engaging in free speech.

 
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