Title: DRH45040-RU-21 (4/2)
Category: Bill Draft

GENERAL ASSEMBLY OF NORTH CAROLINA	SESSION 2003

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2003
H	D
HOUSE DRH45040-RU-21  (4/2)

Short Title:	No Discrimination in Commercial Contracts. | (Public)
Sponsors: | Representative Cunningham.
Referred to: |

A BILL TO BE ENTITLED
AN ACT to make it unlawful to discriminate in commercial contracts and to clarify the policy of the state on doing business with persons found to discriminate.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 75B‑1 reads as rewritten:"§ 75B‑1.  Definitions.
The following words and phrases as used in this Chapter shall have the following meaning unless the context clearly requires otherwise:
(1)	"Business," the manufacture, processing, sale, purchase, licensing, distribution, provision, or advertising of goods or services, or extension of credit, or issuance of letters of credit, or any other aspect of business;
(1a)	"Commercial customer," a business entity that procures or attempts to procure goods or services, including construction, real estate development, financial, insurance, professional and other services, from persons for business as opposed to personal use;
(2)	"Foreign government," all governments and political subdivisions and the instrumentalities thereof, excepting the government, political subdivisions, and instrumentalities of the United States and the states, commonwealths, territories and possessions of the United States, and the District of Columbia;
(3)	"Foreign person," any person whose principal place of residence, business or domicile is outside the United States, or any person controlled directly or indirectly by such person or persons; provided, however, that no person shall be deemed a foreign person if after reasonable inquiry and due diligence it cannot be determined that any such person has a principal place of residence, business, or domicile outside the United States or is controlled by such person;
(4)	"Foreign trade relationships," the dealing with or in any foreign country of any person, or being listed on a boycott list or compilation of unacceptable persons maintained by a foreign government, foreign person, or international organization;
(5)	"International organization," any association or organization, with the exception of labor associations, or organizations of which more than a majority of the membership consists of foreign persons or foreign governments; and
(6)	"Persons," one or more of the following or their agents, employees, servants, representatives, directors, officers, partners, members, managers, superintendents, and legal representatives: individuals, corporations, partnerships, joint ventures, associations, labor organizations, educational institutions, mutual companies, joint‑stock companies, trusts, unincorporated organizations, trustees, trustees in bankruptcy, receivers, fiduciaries, and all other entities recognized at law by this State."
SECTION 2.  G.S. 75B‑2 reads as rewritten:
"§ 75B‑2.  Discrimination in business prohibited.
(a)	It shall be unlawful for any person doing business in the State or for any agency, institution or political subdivision of the State of North Carolina:
(1)	To enter into any agreement, contract, arrangement, combination, or understanding with any foreign government, foreign person, or international organization, which requires such person or the State to refuse, fail, or cease to do business in the State with any other person who is domiciled or has a usual place of business in the State, based upon such other person's race, gender, religion, national origin, age, physical disability or foreign trade relationships;
(2)	To execute in the State any contract with any foreign government, foreign person, or international organization which requires such person or the State to refuse, fail or cease to do business with another person who is domiciled or has a usual place of business in the State, based upon such other person's race, gender, religion, national origin, age, physical disability or foreign trade relationships;
(3)	To refuse, fail or cease to do business in the State with any other person who is domiciled or has a usual place of business in the State or with the State when such refusal, failure, or cessation results directly or indirectly from an agreement, contract, arrangement, combination, or understanding between the person who refuses, fails or ceases to do business and any foreign government, foreign person, or international organization, and is based upon such other person's race, gender, religion, national origin, age, physical disability or foreign trade relationships;
(4)	To discharge or to fail, refuse or cease to hire, promote or appoint in the State any other person who is domiciled in the State to any position of employment or employment responsibility when such refusal, failure or cessation results from an agreement, contract, arrangement, combination, or understanding with any foreign government, foreign person, or international organization and is based upon such other person's race, gender, religion, national origin, age, physical disability or foreign trade relationships;
(5)	To willfully and knowingly aid or abet any other person to engage in conduct which is prohibited by this Chapter.
(b)	It shall be unlawful for any person doing business in the State to discriminate on the basis of race, gender, religion, national origin, age or physical disability, or on the basis of any otherwise unlawful use of characteristics against a vendor, supplier, subcontractor, or commercial customer by any disadvantage, difference, distinction, or preference in the solicitation, selection, hiring or treatment of the person. Nothing in this subsection shall prohibit or limit otherwise lawful efforts to remedy the effects or discrimination that has occurred or is occurring in the marketplace."
SECTION 3.  G.S. 143‑135.5(b) reads as rewritten:
"(b)	It is the policy of this State for its agencies, institutions, and political subdivisions not to accept bids or proposals from, nor to engage in business with, any business that, within the last two years, has been finally found by a court or an administrative agency of competent jurisdiction to have unlawfully discriminated on the basis of race, gender, religion, national origin, age, physical disability, or any other unlawful basis in its solicitation, selection, hiring, or treatment of another business."
SECTION 4.  This act is effective when it becomes law.

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