AB 1551 Summary

• Enacts the California Israel Commerce Protection Act to prohibit state trust funds and moneys from investing in or depositing with business firms and financial institutions that engage in discriminatory practices related to boycotts of Israel

• Expands existing restrictions (previously limited to Arab League boycotts) to cover boycotts of Israel by foreign governments, international organizations, or affiliated agencies that are politically motivated

• Requires state trust funds to use the most recent federal report on boycott, divestment, and sanctions (BDS) activities against Israel to identify affected companies, effective January 1, 2017

• Allows businesses and financial institutions to opt out of divestment by adopting a resolution pledging not to engage in or renew boycott-related discriminatory practices

• Applies most new provisions effective January 1, 2017, while maintaining existing restrictions on Arab League boycotts dating to 1994-1998