SB 261: Alabama Prohibits Public Contracts with Companies that Boycott Key Sectors and Social Policies
Summary
Passed in June 2023, SB 261 prohibits state government entities from entering into public contracts with companies that engage in economic boycotts of other companies. An economic boycott is defined as refusing to deal with, terminating a business relationship with, or taking any other action to economically penalize a company "without an ordinary business purpose" and solely because the company is in the fossil fuel-based energy, timber, mining, agriculture, or firearms industry; fails to commit to or meet environmental standards; fails to commit to or meet corporate governance criteria such as corporate employment or board composition, compensation, or disclosure criteria; or fails to commit to or meet the facilitation of abortion or sex/gender change surgery, medications, treatment, or therapies. An ordinary business purpose under the law "includes a purpose that is related to business operations and excludes a purpose that is solely related to furthering social, political, or ideological interests."
