HB 89 - Prohibits Contracts with Companies Boycotting Israel - Texas Key Vote


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Title: Prohibits Contracts with Companies Boycotting Israel

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Title: Prohibits Contracts with Companies Boycotting Israel

Vote Smart's Synopsis:

Vote to pass a bill that prohibits the state from having contracts with and investments in companies that boycott Israel.



  • Prohibits governmental entities from having contracts with companies for goods or services until written verification is provided in the contract that a company (Sec. 1).

    • Does not boycott Israel; and

    • Will not boycott Israel during the term of the contract.

  • Defines “boycott Israel” as refusing to deal with, terminating business activities with, or otherwise taking any action that is intended to penalize, inflict economic harm on, or limit commercial relations specifically with Israel, or with a person or entity doing business in Israel or in an Israeli-controlled territory, but does not include an action made for ordinary business purposes (Sec. 2).

  • Defines “company” as a for-profit sole proprietorship, organization, association, corporation, partnership, or limited liability partnership, or limited liability company, including a wholly owned subsidiary, majority-owned subsidiary, parent company, or affiliate of those entities or business associations that exist to make a profit (Sec. 2).

  • Defines “state governmental entity” as (Sec. 2):

    • The Employees Retirement System of Texas, including a retirement system administered by that system;

    • The Teacher Retirement System of Texas;

    • The Texas Municipal Retirement System;

    • The Texas County and District Retirement System;

    • The Texas Emergency Services Retirement System; and

    • The permanent school fund. 

  • Requires the comptroller to prepare and maintain, and provide to each state governmental entity, a list of all companies that boycott Israel, as well as file the list with the presiding officer of each house of the legislature and the attorney general, and post the list online publicly (Sec. 2).

  • Requires all the listed governmental entities to notify companies boycotting Israel of their status and warn them that they could face divestment from state governmental entities, unless the company can clarify its Israel-related activities (Sec. 2).

  • Establishes that state governmental entities are not required to divest from any indirect holdings in actively or passively managed investment funds or private equity funds (Sec. 2).

Title: Prohibits Contracts with Companies Boycotting Israel

Title: Prohibits Contracts with Companies Boycotting Israel