Restricted Expenditures — Contracts and Bids
Companies That Boycott Certain Energy Companies

A governmental entity may not award a contract for goods or services to a company unless the contract contains a written verification from the company that it:

• Does not boycott energy companies.
• Will not boycott energy companies during the term of the contract.

This requirement applies only to a contract that:

• Is between a governmental entity and a company with 10 or more full-time employees.
• Has a value of $100,000 or more that is to be paid wholly or partly from public funds of the governmental entity.

Note: The requirements above do not apply to a governmental entity that determines the requirements are inconsistent with the governmental entity’s constitutional or statutory duties related to the issuance, incurrence or management of debt obligations, or the deposit, custody, management, borrowing or investment of funds.

Definitions

Boycott energy company

Refusing to do business or terminating business activities with, or otherwise taking any action that is intended to penalize, inflict economic harm or limit commercial relations with a company because the company 1) engages in the exploration, production, utilization, transportation, sale or manufacturing of fossil fuel-based energy and does not commit or pledge to meet environmental standards beyond applicable federal and state law; or 2) does business with said type of company.

Governmental entity

A state agency or political subdivision of this state.

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