The bill would prevent state entities from contracting with companies that refuse to do business with fossil fuel producers, firearm manufacturers, companies that do not “facilitate” access to abortion or gender-affirming care and other entities.
Under Roberts’ bill, companies entering contracts with public entities must verify that they do not engage in “economic boycotts.” The bill defines “economic boycott” as “refusing to deal with, terminating business activities with, or otherwise taking any commercial action that is intended to penalize or inflict economic harm on a company solely because the company, without violatingcontrolling law or regulation” engage in business protected under the bill.
Additionally, the bill includes companies that do not meet corporate employment or board composition criteria, as well as those that do not facilitate access to abortion or sex or gender change-related procedures. The legislation prevents governmental entities from entering contracts worth more than $15,000 with companies with more than 10 employees engaged in “economic boycotts.”
Rep. Neil Rafferty, D-Birmingham, said after the bill’s passage on Wednesday that the bill is anti-diversity, anti-free speech and anti-free market.Rafferty said that it’s good practice for businesses to have multiple viewpoints, which allows businesses to have more comprehensive human resources and services. He said that the bill could also stifle business development, especially “homegrown business expansion,” if businesses can’t tap into “new and untouched markets.
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