Alabama Anti-Boycott Law.pdf

SB261, titled "Relating to public contracts," prohibits governmental entities from entering into certain contracts with companies that engage in economic boycotts based on specific criteria. Key points include:

1. Definitions: The act defines "company," "economic boycott," "governmental entity," and "ordinary business purpose."

2. Contract Prohibition: Governmental entities may not enter into contracts with companies that have 10 or more full-time employees and will be paid at least $15,000, unless the company verifies it does not engage in economic boycotts. This does not apply to certain financial and insurance-related contracts.

3. Waiver: If compliance significantly increases costs or limits service quality, the governmental entity may waive the requirements after posting a finding on its public website.

4. Penalties and Protection: No party may penalize or threaten to penalize any entity for compliance with the act. Violations cause harm to governmental entities and interfere with their sovereign interests and commercial relationships.

5. Company Protection: No company in Alabama can be required or penalized by a governmental entity for declining to engage in economic boycotts.

6. Attorney General's Role: The Attorney General must take actions to prevent federal laws from penalizing or limiting companies or residents based on economic boycott criteria and can investigate and enforce this act.