KRS 45A.607: Required contract provision restricting contractor from participating

in certain boycott actions -- Exceptions -- Administrative regulations.

(1) As used in this section:

(a) "Boycott" means 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 with:

1. A jurisdiction with which Kentucky can enjoy open trade; or

2. A person or entity doing business with a jurisdiction with which

Kentucky can enjoy open trade; but

"boycott" does not mean an action taken for bona fide business or

economic reasons or that is specifically required by federal or state law;

and

(b) "Jurisdiction with which Kentucky can enjoy open trade" means:

1. Any World Trade Organization member; and

2. Any jurisdiction with which the United States has free trade or other

agreements aimed at ensuring open and nondiscriminatory trade

relations.

(2) A governmental body shall not enter into a contract under this chapter with a

contractor unless the contract includes a representation by the contractor that

the contractor is not currently engaged in, and will not for the duration of the

contract engage in, the boycott of a person or an entity based in or doing

business with a jurisdiction with which Kentucky can enjoy open trade. This

subsection shall not apply to a:

(a) Contract with a value of less than one hundred thousand dollars

($100,000); or

(b) Contractor who:

1. Is an individual; or

2. Employs five (5) or fewer employees.

(3) A governmental body may terminate a contract with a contractor for:

(a) A false representation made under subsection (2) of this section; or

(b) Engaging in a boycott at the time of entering into the contract or during

the duration of the contract.

(4) A request for proposal, invitation to bid, or other document issued by a

governmental body with the intent of soliciting responses for the potential

award of a contract shall include notice of the requirements under this section.

(5) The secretary shall promulgate administrative regulations under KRS Chapter

13A for the administration of this section.