Contract Termination

The Law and Your Business – Boycott Scrutinized Lists

There are many federal designations involving trade and services. In 2016, the Florida Legislature enacted legislation that could impact the public bid process on local, county and state contracts in Florida. §287.135, F.S. has been amended which could allow termination of an existing contract or disqualification from bidding on potential contract opportunities.

Any contract over one million dollars entered into, or amended, as of October 1, 2016 may be terminated if the contractor has been placed on the Sudan, Israel or, Iran Boycott Scrutinized list. Further, a contractor that engages in business with Cuba or Syria or submits a false certification to the governmental entity may have its contract terminated.

The law provides “exceptions” to the exclusion or termination consequence should the local government determine it is in the best interests to contract with the company. Also, the prohibitions will become inoperative once federal law ceases to authorize states to enact such legislation.

By August 1, 2016 the State Board of Administration is charged with researching companies (both direct and indirect holdings) and maintaining a list of companies that boycott Israel. If your company is determined to meet the criteria to be on the list, you should receive a written notice informing you of your scrutinized company status. The entire text of SB 86 can be found online or you may contact my office for more information.

Anthony (Tony) Zebouni, NUCA North Florida

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