Anti-boycott

HR 1697, titled the Israel Anti-Boycott Act (IABA), is an anti-boycott bill that criminalizes participation in boycotts of Israel and its illegal settlements. The bill amends the Export Administration Act of 1979 (EAA), which prohibited boycotts “fostered or imposed” by a foreign country and specifically the Arab League boycott. H.R. 1697 expands the EAA to prohibit U.S. individuals and entities from complying with or supporting boycotts for Palestinian rights fostered or imposed by international governmental organizations, such as the European Union or the United Nations. In March 2016, the U.N. Human Rights Council passed a resolution calling for the establishment of a database of companies contributing to Israel’s illegal settlements. Under the IABA, such accountability efforts, as well as supporting or furnishing information for these efforts, constitute prohibited activities. Violations are subject to civil penalties of $250,000 and criminal penalties of up to $1 million and up to 20 years in prison. 

The bill conflates coercive commercial boycotts—like the Arab League boycott where U.S. companies were forced to boycott Israel as a condition of doing business with other foreign parties—with constitutionally protected political expression in support of Palestinian rights. The bill also amends the Export-Import Bank Act of 1945 to include “politically motivated” economic activity against Israel as a reason for denying credit applications for the export of goods and services between the U.S. and foreign countries. 

In response to criticism from activists and civil liberties groups, the bill was amended, but the changes fail to address the underlying constitutional concerns raised by targeting political boycotts with criminal penalties. Similar legislation introduced in the previous Congress (HR 6298, S 3465) also failed. Related legislation: S 720.

HR 2856, titled the Combating BDS Act of 2017, is an anti-boycott bill that purports to authorize state and local legislation prohibiting state investments in or state contracts with entities that engage in boycott, divestment, and sanctions campaigns for Palestinian rights. The bill claims that such measures are not preempted by federal law and defines BDS activities to include boycotts of Israel and persons doing business in Israel or its illegal settlements. Previous versions of the Combating BDS Act (HR 4514, S 2531) failed after activists, media, and civil liberties groups raised concerns that the legislation would chill constitutionally protected political expression in support of Palestinian rights. Related legislation: S 170.

HR 6095, titled the Export Administration Anti-Discrimination Act, is an anti-boycott bill that imposes criminal sanctions on individuals and entities that boycott countries friendly to the United States or territories controlled by such countries. There is no requirement (as in the Export Administration Act of 1979 that focused on the Arab League boycott) that the boycott be in response to a call to action by a foreign country or any other organization. Individuals who intentionally violate the anti-boycott provisions face fines up to $250,000 or imprisonment of up to 10 years. The bill also prohibits furnishing information about business relationships with countries subject to boycotts and participating in academic boycotts. It creates a private right of action allowing those harmed by prohibited boycotts to seek damages in federal court.

S1 includes the Combating BDS Act of 2019, an anti-boycott bill that purports to authorize state and local legislation prohibiting state investments in or state contracts with entities that engage in boycott, divestment, and sanctions campaigns for Palestinian rights. The bill claims that such measures are not preempted by federal law and defines BDS activities to include boycotts of Israel and persons doing business in Israel or its illegal settlements. Several courts, however, have blocked state anti-boycott laws over concerns that they suppress constitutionally protected political expression. The Senate passed S 1 in February 2019. An identical bill in the House stalled, despite efforts by House Republicans to force a vote. Previous versions of the Combating BDS Act (HR 2856, S 170, HR 4514, S 2531) failed after activists, media, and civil liberties groups raised constitutional concerns. Related legislation: HR 336.

HR 336 includes the Combating BDS Act of 2019, an anti-boycott bill that purports to authorize state and local legislation prohibiting state investments in or state contracts with entities that engage in boycott, divestment, and sanctions campaigns for Palestinian rights. The bill claims that such measures are not preempted by federal law and defines BDS activities to include boycotts of Israel and persons doing business in Israel or its illegal settlements. Several courts, however, have blocked state anti-boycott laws over concerns that they suppress constitutionally protected political expression. The Senate passed an identical version (S 1) in February 2019. House Republicans have made multiple attempts to force a vote on HR 336 to no avail. Previous versions of the Combating BDS Act (HR 2856, S 170, HR 4514, S 2531) failed after activists, media, and civil liberties groups raised constitutional concerns. Related legislation: S 1. 

HR 5595, titled the Israel Anti-Boycott Act, is an anti-boycott bill that criminalizes participation in boycotts of Israel, singling out international efforts to hold Israel accountable for its illegal settlements. The bill amends the Export Control Reform Act (ECRA) of 2018, a successor to the Export Administration Act of 1979 that targeted the Arab League boycott, to prohibit U.S. entities from complying with or supporting boycotts of Israel fostered or imposed by international governmental organizations. This prohibition includes “furnishing information” for the U.N. Human Rights Council’s database of entities contributing to Israel’s illegal settlements. Violations may be punishable by severe fines, up to $300,000 in civil cases and up to $1 million in criminal cases, though the possibility of prison time included in previous iterations has been removed. 

The bill conflates coercive commercial boycotts—like the Arab League boycott where U.S. companies were forced to boycott Israel as a condition of doing business with other foreign parties—with constitutionally protected political expression in support of Palestinian rights. 

Similar bills failed to pass in the last Congress after multiple revisions (S 720, HR 1697).

HB 279 is an anti-boycott bill that prohibits state contracts with and state investment in companies that boycott Israel or territories occupied by Israel. For contracts worth more than $50,000, contractors must provide written certification that they are not and will not for the duration of the contract engage in boycotts of Israel. 

EO 261 is an anti-boycott executive order that prohibits state contracts with business entities that boycott Israel and allows state agencies to terminate a contract with a business entity that boycotts Israel during the term of the contract.

AB 553 is an anti-boycott law that prohibits state contracts valued at $100,000 or more with companies, including sole proprietorships, that boycott Israel or territories it occupies. Contractors must provide written certification that they are not and will not for the duration of the contract engage in such boycotts. It also prohibits state agencies or local governmental units from boycotting Israel, a provision aimed at discouraging divestment campaigns at public universities. The legislation codifies and narrows the governor’s 2017 executive order (EO 261). Related legislation: SB 450.

SB 450 is an anti-boycott bill that prohibits state contracts with persons that boycott Israel or territories it occupies. Contractors must provide written certification that they are not and will not for the duration of the contract engage in such boycotts. It also prohibits state agencies or local governmental units from boycotting Israel, a provision aimed at discouraging divestment campaigns at public universities. An amendment changed “persons” to “companies,” defined as including sole proprietorships, and limited the application of the bill to contracts valued at $100,000 or more. Related legislation: AB 553 (passed).