A panel of skeptical federal appeals judges meeting in Miami Thursday sharply questioned a Florida law prohibiting the state and local governments from hiring companies with business ties to Cuba.
Several questions from the three-judge panel centered on whether the law would conflict with the federal government’s power to set foreign policy. Last year, U.S. District Judge K. Michael Moore blocked the law from taking effect, ruling in favor of Odebrecht USA, the Coral Gables-based subsidiary of the Brazilian engineering and construction conglomerate. The state appealed.
On Thursday, 11th U.S. Circuit Court of Appeals Judge Stanley Marcus asked Gregory Costas, an attorney for the Florida Department of Transportation, if the law would ban companies permitted under federal law to do some business with Cuba — such as providing agricultural equipment or medical supplies — from obtaining government contracts in Florida.
“That would be doing business with Cuba,” Costas responded.
“Isn’t that a square collision with the federal regime?” Marcus said.
Odebrecht sued FDOT over the law, approved by a near-unanimous majority of state legislators and signed by Republican Gov. Rick Scott. It would prohibit state and local government agencies from awarding contracts worth at least $1 million to U.S. firms whose foreign-owned parent companies or subsidiaries work in Cuba or Syria. An affiliate of Odebrecht USA’s parent company is heading a major expansion of the Cuban Port of Mariel.