1. “Boycott of Israel” means, except as otherwise provided in subsection 2, refusing to deal or conduct business with, abstaining from dealing or conducting business with, terminating business or business activities with or performing any other action that is intended to limit commercial relations with:
(a) Israel; or
(b) A person or entity doing business in Israel or in territories controlled by Israel,
Ê if such an action is taken in a manner that discriminates on the basis of nationality, national origin or religion.
2. The term does not include an action that is described in subsection 1 if the action:
(a) Is based on a bona fide business or economic reason;
(b) Is taken pursuant to a boycott against a public entity of Israel if the boycott is applied in a nondiscriminatory manner; or
(c) Is taken in compliance with or adherence to calls for a boycott of Israel if that action is authorized in 50 U.S.C. § 4607 or any other federal or state law.