Utah Code 63G-27-201. Prohibition on contracting

63G-27-201. Prohibition on contracting.

(1)

Except as provided in Subsection (3), a public entity may not enter into a contract with a company to acquire or dispose of a good or service, including supplies, information technology, or construction services, unless:

Terms Used In Utah Code 63G-27-201

Company: includes any wholly-owned subsidiary, majority-owned subsidiary, parent company, or affiliate of an entity described in Subsection (4)(a). See Utah Code 63G-27-102
Contract: A legal written agreement that becomes binding when signed.
Economic boycott: means , without an ordinary business purpose:

(a)

engaging in a boycott action targeting:

(i)	a boycotted company; or

(ii)	another company because the company does business with a boycotted company; or

(b)

taking an action intended to penalize, inflict economic harm to, or change or limit the activities of:

(i)	a boycotted company; or

(ii)

another company because the company does business with a boycotted company. See Utah Code 63G-27-102

Public entity: means the state or a political subdivision of the state, including each department, division, office, board, commission, council, authority, or institution of the state or a political subdivision of the state. See Utah Code 63G-27-102

State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5

Writing: includes :Utah Code 68-3-12.5

(a)

the contract includes a written certification that the company is not currently engaged in:

(i)	a boycott of the State of Israel; or

(ii)	an economic boycott;

(b)	the company agrees not to engage in a boycott of the State of Israel for the duration of the contract; and

(c)	the company agrees to notify the public entity in writing if the company begins engaging in an economic boycott.

(2)	A company’s notice under Subsection (1)(c) may be grounds for termination of the contract.

(3)

This section does not:

(a)

apply to:

(i)	a contract with a total value of less than $100,000; or

(ii)	a contract with a company that has fewer than 10 full-time employees; or

(b)

prohibit a public entity from entering into a contract with a company that engages in an economic boycott if:

(i)

there is no economically practicable alternative available to the public entity to:

(A)	acquire or dispose of the good or service; or

(B)	meet the public entity’s legal duties to issue, incur, or manage debt obligations, or deposit, keep custody of, manage, borrow, or invest funds; or

(ii)	the company engages in the economic boycott to comply with federal law.

Amended by Chapter 243, 2023 General Session

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