SB513 Summary

• Prohibits Arkansas public entities (state agencies, colleges, universities, local governments, and retirement systems) from entering contracts with companies that boycott Israel unless the company certifies it is not engaged in and will not engage in such boycotts during the contract term.

• Exempts contracts under $1,000 and allows non-certifying companies to compete if they offer goods or services at least 20% below the lowest certifying business bid.

• Requires public entities to identify companies boycotting Israel and compile a restricted companies list distributed to all retirement systems.

• Mandates divestment of all direct holdings in restricted companies within 3 months of the company appearing on the restricted list; requires entities to request that investment fund managers remove restricted company investments from indirect holdings and private market funds.

• Provides exemptions from fiduciary duties and conflicting statutory obligations for retirement systems and the Arkansas Development Finance Authority when complying with divestment requirements.