Texas AG Warns Governmental Entities Not to Contract with Prohibited Companies

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  • Texas AG Ken Paxton issued an advisory letter regarding state laws prohibiting governmental entities from contracting with businesses that boycott energy companies, discriminate against firearm entities or associations, or boycott Israel.
  • In the letter, AG Paxton advises that no Texas governmental entity may enter into a contract for the purchase of goods or services of $100,000 or more with such entities, and that he has directed the Public Finance Division to take proactive measures to ensure compliance with the law.
  • Jerry Kilgore of Cozen O’Connor’s State AG Group was recently quoted in a National Law Journal article analyzing legal challenges to state efforts in Missouri and Kentucky barring companies from basing investment decisions on ESG concerns.
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