Bill Text: NH SB439 | 2024 | Regular Session | Introduced
Bill Title: To prohibiting discriminatory boycotts of Israel in state procurement and investments.
Spectrum: Moderate Partisan Bill (Republican 14-4)
Status: (Engrossed) 2024-04-23 - Minority Committee Report: Ought to Pass [SB439 Detail]
Download: New_Hampshire-2024-SB439-Introduced.html
SB 439-FN - AS INTRODUCED
2024 SESSION
24-3024
11/10
SENATE BILL 439-FN
AN ACT to prohibiting discriminatory boycotts of Israel in state procurement and investments.
SPONSORS: Sen. Bradley, Dist 3; Sen. Gray, Dist 6; Sen. Gannon, Dist 23; Sen. Avard, Dist 12; Sen. Watters, Dist 4; Sen. Ricciardi, Dist 9; Sen. Lang, Dist 2; Sen. Soucy, Dist 18; Sen. Gendreau, Dist 1; Sen. Altschiller, Dist 24; Sen. Rosenwald, Dist 13; Sen. Ward, Dist 8; Sen. Pearl, Dist 17; Sen. Innis, Dist 7; Sen. Birdsell, Dist 19; Sen. Murphy, Dist 16; Sen. Carson, Dist 14; Sen. Abbas, Dist 22
COMMITTEE: Executive Departments and Administration
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ANALYSIS
This bill prohibits discriminatory boycotts of Israel in state procurement and investments.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
24-3024
11/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Four
AN ACT to prohibiting discriminatory boycotts of Israel in state procurement and investments.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Purpose and Findings. The general court makes the following findings:
I New Hampshire and Israel have experienced decades of successful exchange of commerce, culture, technology, tourism, trade, economic development, scholarly inquiry, and academic research;
II Those accomplishments have helped generate over one billion dollars in exports since 1996 and over one-hundred million dollars of exports in 2021, and this trade has contributed to substantial job creation in this state;
III Ongoing cooperation with Israel helps keep New Hampshire at the cutting edge of scientific, health care, technological and industrial practices that materially benefit the competitiveness of the state's businesses and the quality of life of New Hampshire citizens;
IV Boycotts of entities and individuals of specific countries often amount to ethnic, religious, racial and/or nationality discrimination. Such discrimination contradicts state public policy and the values of its people;
V Israel has been, and continues to be, the specific target of a dedicated hate movement that seeks to isolate it economically, alienate it socially, and coerce neutral businesses into joining the hate-driven boycott against their will;
VI It is the public policy of the United States, as enshrined in several federal laws, to oppose boycotts against Israel (for example, 50 App. U.S.C. § 2407; 26 U.S.C.A. § 999), and Congress has concluded as a matter of national trade policy that cooperation with Israel materially benefits U.S. companies and improves American competitiveness (for example, 19 U.S.C.§ 2112, note and 19 U.S.C. § 4201(b)(20);
VII There is no exhaustive definition of antisemitism, as it can take many forms. The International Holocaust Remembrance Alliance (IHRA) Working Definition has nonetheless been an essential definitional tool used to determine contemporary manifestations of antisemitism, and includes useful examples of discriminatory anti-Israel acts that cross the line into antisemitism. It states, “Antisemitism is a certain perception of Jews, which may be expressed as hatred toward Jews. Rhetorical and physical manifestations of antisemitism are directed toward Jewish or non-Jewish individuals and/or their property, toward Jewish community institutions and religious facilities.”;
VIII The state has a longstanding and broad policy to refrain from contracting with business entities that unlawfully discriminate in the solicitation, selection, hiring, or commercial treatment of vendors, suppliers, subcontractors, or commercial customers; and
IX Refraining from contracting with business entities that unlawfully discriminate in the solicitation, selection, hiring, or commercial treatment of vendors, suppliers, subcontractors, or commercial customers will help New Hampshire maintain a fair and level playing field for all our citizens, regardless of their national origin, and will protect the rights of our local businesses to engage freely in good business without fear of the coercive tactics of the anti-boycott, divestment, and sanctions hate movement.
2 New Section; Department of Administrative Services; Prohibiting Discriminatory Boycotts of Israel in State Procurement and Investments. Amend RSA 21-I by inserting after section 18 the following new section:
21-I:18-a Prohibiting Discriminatory Boycotts of Israel in State Procurement and Investments.
I. Definitions. For the purposes of this section:
(a) "Boycott Israel" means engaging in refusals to deal, terminating business activities, or other similar commercial actions intended to limit commercial relations with persons doing business in Israel or in Israeli-controlled territories when the actions are taken in compliance or adherence to calls for a boycott of Israel, other than those boycotts to which 50 U.S.C. 2407(c) apply, or taken in a manner that discriminates on the basis of nationality, national origin, or religion.
(b) "Company" means any organization, association, corporation, partnership, joint venture, limited partnership, limited liability company, or other entity or business association, including a wholly owned subsidiary, majority-owned subsidiary, parent company, or affiliate.
II. Notwithstanding any other provision of law, no executive branch agency may adopt any investment policy that would have the effect of requiring or inducing any person to boycott Israel.
III. With regard to executive branch entities:
(a) They shall not invest in companies found to be engaged in a boycott of Israel.
(b) They shall not contract with a company that has been determined to be boycotting Israel.
(c) They shall, when entering into any procurement or investment contract, make the contracting party aware that the agency will not tolerate any boycotting of Israel.
IV. If any executive branch agency receives a credible indication that a company boycotts Israel, it shall, through a review of evidence, determine whether the company does, in fact, boycott Israel. A company statement that indicates the company is participating in a boycott of Israel or has taken boycott action at the request of, in compliance with, or in furtherance of calls for a boycott of Israel, shall be considered prima facie evidence of such boycott. A lone expressive activity directed at a specific person or a governmental action may not be considered evidence of a boycott.
V. If an executive branch agency or other entity determines that it is investing in companies found to be engaged in a boycott of Israel, the agency shall sell, redeem, divest, or withdraw all direct holdings in such companies in an orderly and fiduciarily responsible manner within 3 months after determination of the boycott. If such company ceases boycott activity and submits a written certification to the New Hampshire state treasury that it shall not reengage in such activity for the duration of any investment by the state, the company shall no longer be considered to be engaged in a boycott of Israel.
VI. All contracts entered into by executive branch agencies shall include a provision making clear that a determination of a company's boycott of Israel shall be grounds for termination of any contract with that company, without penalty to the New Hampshire party. All requests for information, requests for proposals, or other similar requests related to a competitive bidding process for a contract shall include a provision that makes clear that any bidder's or interested party's actions found to boycott Israel will disqualify it from contracting with any agency in the state.
VII. If any provision of this section or its application to any person or circumstance is determined invalid, the invalidity does not affect other provisions or applications of the section which can be given effect without the invalid provision or application, and to this end the provisions are severable.
3 Effective Date. This act shall take effect upon its passage.
24-3024
Revised 12/13/23
SB 439-FN- FISCAL NOTE
AS INTRODUCED
AN ACT to prohibiting discriminatory boycotts of Israel in state procurement and investments.
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
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Estimated State Impact - Increase / (Decrease) | ||||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 | ||
Revenue | $0 | $0 | $0 | $0 | ||
Revenue Fund(s) | None | |||||
Expenditures | $0 | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | ||
Funding Source(s) | General Fund and Highway Fund Various Agency Funds | |||||
Appropriations | $0 | $0 | $0 | $0 | ||
Funding Source(s) | None | |||||
• Does this bill provide sufficient funding to cover estimated expenditures? [X] No • Does this bill authorize new positions to implement this bill? [X] N/A | ||||||
METHODOLOGY:
This bill prohibits state executive branch agencies from adopting investment policies that would induce or require a boycott of Israel. It also mandates agencies to avoid investing in or contracting with companies participating in such a boycott, notifying parties of this stance, investigating indications of boycott, divesting from companies engaged in a boycott within three months, and incorporating anti-boycott provisions in all contracts and procurement solicitations.
The Department of Administrative Services assumes that "companies" also cover sole proprietorships, despite their exclusion from the definition, and presumes the obligation to investigate boycotts applies to current contract counterparts and active vendors in ongoing procurement processes. The Department anticipates an indeterminable impact on state expenditures due to the lack of information on current vendors' boycott activities and limited experience in investigating and assessing boycott allegations. However, the proposed legislation introduces new agency obligations directly affecting state procurement, likely resulting in increased state expenditures as agencies work to comply. The bill lacks funding for these additional expenditures, making it uncertain whether the Department's or other agencies' budgets can absorb these costs.
It is assumed the fiscal impact from this bill will not occur until FY 2025.
AGENCIES CONTACTED:
Department of Administrative Services
