Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding a section numbered 2.2-4311.3 as follows:

§2.2-4311.3. Prohibition on boycotting Israel; required contract provision.

A. As used in this section, "boycott Israel" 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 (i) the State of Israel; (ii) an entity or individual doing business in or with the State of Israel; or (iii) an entity authorized by, licensed by, or organized under the laws of the State of Israel.

B. All public bodies shall include in every contract in excess of $100,000 with a business that employs more than 10 employees the following provision: "During the performance of this contract, neither the contracting business nor any of its affiliates shall engage in a boycott of Israel."

C. Any business with a contract pursuant to subsection B shall include the same provision listed in subsection B in every subcontract or purchase order in excess of $10,000 so that the provision shall be binding upon each subcontractor and vendor and their affiliates.