Combating BDS Act of 2023

This bill allows state and local governments to adopt measures divesting public funds from entities engaging in boycotts targeting Israel or businesses in Israeli-controlled territories, while requiring specific procedural safeguards. Key provisions include a 90-day notice period to affected entities, an opportunity for entities to dispute the designation, and verification requirements to prevent erroneous targeting. It explicitly states that such state actions are not preempted by federal law and includes a safe harbor for investment managers adjusting policies. The bill directly affects public pension funds, municipal investments, and government contractors that meet the defined boycott criteria. It does not create new federal mandates but clarifies that states retain authority to implement these measures under their existing legal frameworks.