FL S0086

State Board of Administration must identify all companies boycotting Israel or engaged in Israel boycotts by August 1, 2016, and create and maintain a public "Scrutinized Companies that Boycott Israel List" updated quarterly.

State Board of Administration is prohibited from acquiring new securities of companies on the Israel boycott list, with limited exceptions for indirect holdings and exchange-traded funds; companies have 90 days after notice to cease boycott activities to avoid being listed.

State agencies and local governmental entities cannot contract with companies on the Israel boycott list for goods or services of $1 million or more, and all such contracts must include termination provisions if a company engages in or resumes an Israel boycott.

Companies bidding on state or local contracts of $1 million or more must certify they are not participating in an Israel boycott; false certifications result in civil penalties of $2 million or twice the contract value, plus attorney fees, and 3-year contract bidding ban.

The State Board may invest in boycotting companies only if fund assets drop to 99.50 percent or less of their hypothetical value without the investment prohibitions, requiring advance written notice to legislature and trustees.