State Contracts

This anti-boycott law prohibits state contracts with and state investments in entities, including individuals, that boycott Israel or territories controlled by Israel. For state contracts, the law requires written certification that entities do not and will not boycott Israel. The law excludes contracts under $1,000 and contractors who bid 20% less than other bidders. The law also calls for the creation of a blacklist of companies that boycott Israel and requires public retirement systems to divest from these companies. Companies can remove themselves from the blacklist by submitting a written certification that they will not boycott Israel for the duration of any investment by the public entity.

In December 2018, The Arkansas Times sued to challenge the law arguing that it should not be compelled to speak against boycotts for Palestinian rights. In January 2019 the district court dismissed the case. In February 2021, the Eighth Circuit Court of Appeals struck down the law as unconstitutional. The state moved for a larger panel of judges to rehear the case. In June 2022, the Eighth Circuit, sitting en banc, upheld the Arkansas law, ignoring precedent and history to find that SB 513 restricts purely commercial conduct that carries no political message and thus does not violate the First Amendment.

This anti-boycott bill prohibits state contracts with entities that boycott Israel. Contractors must provide a written certification that they are not and will not engage in boycotts for the duration of the contract. It excludes contracts worth less than $15,000 or contractors who bid at least 20% less than other bidders. Lawmakers passed the companion bill SB 81.