WHAT IS THE NEW BOYCOTT OF ISRAEL CONTRACT CERTIFICATION – QUICK FACTS

 

WHAT:

  • An act of the General Assembly (Public Chapter 775) passed during the 2022 session
  • Prohibits a public entity from entering into a covered contract with a company to acquire or dispose of services, supplies, information technology, or construction unless the contract includes a written certification which confirms the contractor is not participating in a boycott of business dealings with Israel.
  • The certification must be included in any agreement with a contractor if it meets either of these 2 conditions:
    • The value of the agreement is $250,000 or greater
    • OR the contractor has 10 or more employees
  • The effective date is July 1, 2022.

 

WHY:

  • The penalty for failing to have this written certification in the agreement is harsh.
  • If the Boycott of Israel Certification is not included in a contract, then the contract is considered VOID.

 

HOW:

  • A utility which enters into a covered agreement may comply with the Act by including a paragraph or section in the agreement which reads as follows:

 

Boycott of Israel.  The Contractor certifies that it is not currently engaged in, and covenants that it will not, for the duration of the Contract, engage in a Boycott of Israel, as that term is defined in Tenn. Code Ann. § 12-4-127.

 

WHEN:

  • ASAP – This applies to all contracts that meet either of the conditions entered into after July 1st, 2022.

 

RESOURCES:

FROM OUR COUNSEL

PUBLIC CHAPTER NO. 775