HB 527 Summary

• Creates section 215.4725 requiring the State Board of Administration to identify and maintain a list of companies boycotting Israel in which public funds hold direct or indirect investments, with quarterly updates to the public.

• Prohibits the State Board from acquiring securities of companies on the Scrutinized Companies that Boycott Israel List, except for indirect holdings and exchange-traded funds, though the board must request fund managers remove such companies.

• Prohibits state agencies and local governmental entities from contracting with companies on the Israel boycott list for goods or services of $1 million or more, effective October 1, 2016, with limited exceptions if determined in the community's best interest.

• Requires companies to certify they are not on the boycott list when bidding or entering contracts with state/local entities; false certifications result in civil penalties up to $2 million or twice the contract amount, plus attorney fees and 3-year bidding ineligibility.

• Allows the State Board to invest in scrutinized companies only if fund assets fall to 99.5 percent or less of hypothetical value without boycott restrictions, requiring advance written justification to trustees and legislature.