At the state level, bipartisan legislative majorities, with the support of their governors, have heeded that call. Illinois, Ohio, New Jersey, Iowa, Georgia, Arizona, Florida, and Indiana have all enacted laws between 2015 and 2017 making it illegal for their respective states to contract with or invest state pension funds in any company which refuses to do business with illegal Israeli settlements or businesses based in these settlements, even if the company produces and sells products in Israel itself.
Some of these laws also prohibit the state from contracting with any nongovernmental group, including churches and other nonprofits, which promote a boycott of companies involved in territories controlled by Israel. For example, a homeless shelter run by a Presbyterian or Congregationalist church would now be ineligible for state funding because these denominations have divested from four or five companies directly supporting the Israeli occupation.
There are a number of states where such legislation is in progress, such as New York, where the State Senate recently passed a bill making it impossible for the state contract with or invest in any company or nongovernmental entity, organization or group which engages in or promotes a boycott of any company involved in territories controlled by any "allied nation." (Governments not allied with the United States are exempt, therefore it does not impact U.S. boycotts and sanctions against Russia for its occupation of Crimea.) New York Governor Andrew Cuomo also issued the first-ever executive order forcing state agencies to divest from any organizations aligned with the Boycott, Divestment and Sanctions movement.
In Montana, a bill was recently pushed through the State House which would bar public agencies--including counties, cities and towns--from doing businesses with companies that don't agree to certify in writing that they are not engaged in a boycott of Israel or its illegal settlements. As with a number of other cases, the bill's chief sponsor has claimed that such legislation targeting those opposed to the Israeli occupation and settlements is a necessary response to the recent rise of bomb threats and other anti-Semitic activity by neo-Nazis.
Some states have gone even further, seeking to suppress student advocacy against the occupation and settlements. On March 8, the New York State Senate, with broad bipartisan support, passed a bill that would prohibit any state university from funding any student organization which directly or indirectly promotes boycotts or divestment against companies operating in "territories controlled by an allied nation." According to the legislation, any campaign to persuade university endowments to divest from stockholdings in companies supporting the Israeli occupation and settlements "seeks to advance anti-Semitic, anti-freedom and anti-capitalist principles."