Just weeks after a ruling out of the Western District of Texas, Governor Abbott signed Texas House Bill 793 (“HB 793”) into law, effective immediately. One of the Senate sponsors for the new law indicated HB 793 makes the original intent of the law clear.

The lawsuit stems from a speech pathologist, Bahia Amawi, who refused to sign her contract as a result of the provision required by Local Government Code § 2270.002. Specifically § 2270.002(b) states a governmental entity may not enter into a contract with a company for goods or services unless the contract contains a written verification from the company that it: does not boycott Israel; and will not boycott Israel during the term of the contract. After refusing to sign a contract containing the provision with Pflugerville ISD, Amawi lost her position with the district. Amawi sued Pflugerville ISD, alleging the law violated her First and Fourteenth Amendment rights. Judge Robert Pitman granted an injunction against the previous version of the law. The court found the law acted as a viewpoint-based restriction “intended not to combat discrimination on the basis of national origin, but to silence speech with which Texas disagrees.”

HB 793 narrows the types of contracts affected by the law. Specifically, the term “company” no longer applies to a sole proprietorship for the purpose of Chapter 2270. In addition, Chapter 2270 now only applies to a contract that:

  1. Is between a governmental entity and a company with 10 or more full-time employees; and
  2. Has a value of $100,000 or more that is to be paid wholly or partly from public funds of the governmental entity.

For questions about the effects of HB 793, Texas Local Government Code Chapter 2270, or contracts generally, please do not hesitate to contact our office.

Prepared by the offices of Richard Abernathy, this article should not be construed as legal advice related to any specific facts or circumstances. Although this article covers legal subjects, it is intended to educate readers and not to provide advice that will be the basis for action or inaction in any specific circumstance. Viewing these materials does not create an attorney-client relationship between Abernathy, Roeder, Boyd & Hullett, P.C. and the reader or the reader’s institution. For circumstance-specific legal advice, please directly contact a licensed attorney.