FL Will No Longer Do Business With Companies That 'Support Terrorism'

TAMPA, FL — In the wake of the Florida House passing four bills supporting Israel in its war against Hamas, Florida Chief Financial Officer Jimmy Patronis is taking measures to penalize companies in Florida that do business with Iran, Syria, Lebanon and regions associated with Palestine.

During a special legislative session on Thursday, the Florida House passed a series of measures, including a bill to divest public funds from businesses on Florida's "Scrutinized Companies with Activities in Iran Terrorism Sectors List," businesses in Florida that "do business with those who support terrorist regimes," as determined by the Florida Small Business Administration.

This is an extension of the 2011 Florida statute that created the List of Scrutinized Companies that Boycott Israel, prohibiting the state from doing business with companies that limit commercial relations with Israel or Israeli-controlled territories and banning the state from acquiring direct holdings of the companies on the list.

The 2023 list of scrutinized companies includes companies that do business with Mideast countries that promote terrorism. If a company appears on the list, Florida's investment managers cannot invest Florida pension money into that company's stocks or bonds.

As of October, the list included 112 companies. These include companies engaging in business with the government of Iran in the energy, petrochemical, financial, construction, manufacturing, textile, mining, metals, shipping, shipbuilding and port sectors.

Additionally, Patronis issued a directive barring the Florida Department of Financial Services' Unclaimed Property Division from returning unclaimed property to nation-states and other regions that facilitate attacks and other hostilities toward Israel.

“There’s never been a more important time to stand with Israel," said Patronis. "Under a federal license, Florida was compelled to not only turn over unclaimed property, but provide interest to claimants that were in areas that were outwardly hostile to Israel. That’s insane and we’re putting a stop to it. Not one cent will leave Florida to be used for potential terrorist activity."

Moreover, Patronis said he directed the Unclaimed Property division to take steps to proactively return about $176,000 worth of property back to Israelis.

"Florida is a staunch ally of Israel, and as they’re fighting for their very existence, every dollar counts. I urge treasurers and comptrollers across the nation to take the same action," he said.

“It’s shameful how the virus of hateful, Palestine-led BDS practices has infected corporations and financial markets, and Florida stands committed to fighting these anti-Israel policies," Patronis said. Boycott, Divestment, Sanctions policies are a Palestinian-led movement for freedom, justice and equality. "Following the heinous and unprecedented attacks by terrorists against Israel, Jewish and Israeli Floridians need our support now more than ever. Let me be clear: If you want to do business with the state of Florida, you cannot support BDS policies against Israel, or you will face the consequences.”

According to the Division of Unclaimed Property, there are 19 accounts totaling nearly $39,000 associated with the countries of Syria, Iran, Lebanon and regions of Palestine.

Patronis' action comes on the heels of directing the Florida Treasury to purchase $145 million in Israel bonds following terrorist attacks in Israel last month.

This bond purchase is the largest total ever held at one time by the state of Florida.

Under Patronis’ direction, since 2017 the Florida Treasury has purchased $190 million in Israel bonds to diversify the state’s investment portfolio as part of a long-range investment strategy and has generated approximately $6.4 million in interest from these investments.

“Florida and Israel have deep economic and personal ties, and our state unequivocally stands with Israel following the heinous Iran-backed terrorist attacks," he said. "We made a commitment to support Israel both morally and monetarily. This historic investment further fortifies Florida’s commitment to stand with and support Israel.

"To the people of Israel, Israeli Americans and Jewish Floridians across our state, Florida is proud to stand with you," he said.

Israel Bonds Executive Director Mark Ruben said,

“Following the tragic and unprecedented terrorist attacks, Israel needs the support of our allies more than ever," said Israel Bonds Executive Director Mark Ruben. This bond purchase is a testament to the deep relationship between our two lands and people. Thank you to CFO Patronis and Floridians statewide for your continued dedication to strengthening the Israel/Florida relationship.”

For 72 years, the Development Corporation for Israel/Israel Bonds has generated $49 billion worldwide across all bonds affiliates in financial support for the building and development of every sector of Israel’s economy.

In passing the bills during the special session this week to support Israel, House Speaker Paul Renner, R-Palm Coast, said the action was too important to wait for the start of the 2024 legislative session in two months.

House Bill 5C, Scrutinized Companies, introduced by Florida Rep. John Snyder, R- Stuart, directs the State Board of Administration to divest public funds from companies on the "Scrutinized Companies with Activities in Iran Terrorism Sectors List that do business with the Islamic Republic of Iran.

He said the bill demonstrates Florida’s refusal to do business with those who support terrorist regimes.

“We are using every financial tool at our disposal to increase pressure on the Iranian regime in an effort to reduce global terrorism and hold them accountable for the atrocities they’ve committed," Snyder said. "Those who support terrorism will not be allowed to contract with the state of Florida or be a part of our investment portfolio."

On Aug. 3, 2021, Executive Director & Chief Investment Officer of the Florida State Board of Administration Ash Williams notified Gov. Ron DeSantis that Ben & Jerry’s parent company, Unilever, had been added to Florida’s List of Scrutinized Companies after Unilever announced a boycott against Israel and said it would remove its products and prohibit the sale of its ice cream in Judea and Samaria.

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