SB 110: Florida Mandates Divestment from Companies that Boycott Israel
Summary
SB 110 was adopted in May 2023 and amends existing law that requires any public funds under the State Board of Administration (the board responsible for overseeing investments of public funds) to identify companies that engage in a boycott of Israel and to compile a Scrutinized Companies that Boycott Israel List. The fund is then required to send written notice to any listed companies in which the fund has direct or indirect holdings requiring the company to cease its boycotting activity to avoid investment prohibitions. SB 110 adds the requirement that, if after 90 days from the time the fund sends a written notice the company does not cease its activity, in addition to imposing investment prohibitions the fund must divest all publicly traded securities of the company.
The existing law defined a boycott of Israel to include "refusing to deal, terminating business activities, or taking other actions to limit commercial relations with Israel . . . in a discriminatory manner." SB 110 amended the definition to add that the term "includes taking adverse action, including changes to published commercial financial ratings, risk ratings, and controversy ratings based on non pecuniary factors, to inflict economic harm on Israel or persons or entities doing business in Israel or in Israeli-controlled territories." In other words, the law now includes actions by companies to reduce social ratings based on Israeli connections.
