1. Short title This Act may be cited as the Combating BDS Act of 2023 . 2. Nonpreemption of measures by State and local governments to divest from entities that engage in certain boycott, divestment, or sanctions activities targeting Israel or persons doing business in Israel or Israeli-controlled territories (a) State and local measures Notwithstanding any other provision of law, a State or local government may adopt and enforce measures that meet the requirements of subsection (c) to divest the assets of the State or local government from, prohibit investment of the assets of the State or local government in, or restrict contracting by the State or local government for goods and services with— (1) an entity that the State or local government determines, using credible information available to the public, knowingly engages in an activity described in subsection (b); (2) a successor entity or subunit of an entity described in paragraph (1); or (3) an entity that owns or controls or is owned or controlled by an entity described in paragraph (1). (b) Activities described An activity described in this subsection is a commerce-related or investment-related boycott, divestment, or sanctions activity in the course of interstate or international commerce that is intended to penalize, inflict economic harm on, or otherwise limit commercial relations with Israel or persons doing business in Israel or Israeli-controlled territories for purposes of coercing political action by, or imposing policy positions on, the Government of Israel. (c) Requirements A State or local government that seeks to adopt or enforce a measure under subsection (a) shall meet the following requirements: (1) Notice The State or local government shall provide written notice— (A) in the case of a measure relating to divestment or investment, to each entity to which the measure is to be applied