Stop ESG-Eliminate economic boycott act.

23LSO-0637
2023
STATE OF WYOMING
23LSO-0637
ENGROSSED
3.0

SENATE FILE NO. SF0159

Stop ESG-Eliminate economic boycott act.

Sponsored by: Senator(s) Biteman, Driskill, Hutchings and Steinmetz and Representative(s) Angelos, Bear, Burkhart, Haroldson, Heiner, Jennings, Olsen, Rodriguez-Williams and Ward

A BILL

for

AN ACT relating to the administration of government; requiring parties to state contracts to certify that they do not engage in boycotting or discrimination as specified; providing definitions; providing legislative findings; specifying applicability; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1
.

W.S. 9
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5
‑
401 through 9
‑
5
‑
404 are created to read:

CHAPTER 5
PROPERTY, BUILDINGS AND CONTRACTS

ARTICLE 4
CERTIFICATIONS FOR STATE CONTRACTS

9
‑
5
‑
401.

Legislative findings.

(a)

The legislature finds that:

(i)

Numerous essential American industries, including fossil fuel production, agriculture, timber production and firearms, are being targeted for boycotting, divesting and sanctioning by large corporations and public and private institutional investors;

(ii)

The goal of these colluding parties is to starve targeted legal industries of capital, restrict their productivity and redirect that capital to favored industries;

(iii)

These parties are working in concert with many state and federal lawmakers and regulators, as evidenced by new climate disclosure rules from the United States securities and exchange commission;

(iv)

Restricting the supply of energy and other essential commodities, without effective substitutes for those commodities, only serves to raise prices on consumers, profoundly impacting the poorest among us;

(v)

Denying financing to American companies, who are among the most socially and environmentally responsible companies in the world, only serves to support hostile nations and less responsible producers;

(vi)

Banks and insurance companies are increasingly denying financing to creditworthy companies to market their environmental credentials to the detriment of consumers, shareholders and society;

(vii)

Institutional investors are divesting from entire industries and pressuring corporations to commit to environmental goals, including reducing greenhouse gas emissions to zero (0) by 2050, to burnish their environmental credentials or to promote their own environmental, social and governance funds at the expense of investor returns;

(viii)

Large investment firms, through their proxy votes on shareholder resolutions and board elections, are colluding to force companies to direct money, time and attention away from their core responsibility of increasing shareholder returns and driving capital allocations and political change outside the democratic process;

(ix)

Corporations are boycotting and sanctioning essential legal industries, including fossil fuel and agriculture producers, by denying them capital, refusing to provide them with products or services and imposing undue burdens on them;

(x)

The collusion of corporations and institutions to boycott, divest from or sanction any industry may violate existing antitrust and fiduciary duty laws and harms consumers, shareholders and the state of Wyoming;

(xi)

States, when financially prudent, should avoid doing business with companies that engage in potentially illegal conduct described in this section and threaten harm to the state, its business and its citizens.

9
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5
‑
402.

Definitions.

(a)

As used in this act:

(i)

"Company" means any for
‑
profit organization, association, corporation, partnership, joint venture, limited partnership, limited liability partnership, joint stock company or limited liability company, including a wholly
‑
owned subsidiary, majority
‑
owned subsidiary, parent company or affiliate thereof. "Company" does not include sole proprietorships;

(ii)

"Economic boycott" means, without an ordinary business purpose, refusing to deal with, terminating business activities with or otherwise taking any commercial action that is intended to penalize, inflict economic harm on, limit commercial relations with or change or limit the activities of a company because the company, without violating state or federal law:

(A)

Engages in the exploration, production, utilization, transportation, sale or manufacturing of fossil fuel based energy, timber, mining or agriculture;

(B)

Engages in, facilitates or supports the manufacture, import, distribution, marketing, advertising, sale or lawful use of firearms, ammunition, components, parts and accessories of firearms or ammunition;

(C)

Does not meet, is not expected to meet or does not commit to meet environmental standards or disclosure criteria to eliminate, reduce, offset or disclose greenhouse gas emissions;

(D)

Does not meet, is not expected to meet or does not commit to meet corporate board, employment, composition, compensation or disclosure criteria that incorporates characteristics protected in this state as specified by W.S. 27
‑
9
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105(a)(i);

(E)

Does not facilitate, is not expected to facilitate or does not commit to facilitate access to abortion, sex or gender change or transgender surgery.

(iii)

"Governmental entity" means the state, University of Wyoming, any local government or any agency, board or commission thereof;

(iv)

"Ordinary business purpose" means any purpose that does not further social, political or ideological interests. A company shall be deemed to have taken an action or considered a factor that furthers a social, political or ideological interest upon evidence of a purpose that is found in, but not limited to:

(A)

Branding, advertising, statements, explanations, reports, letters to clients, communications with portfolio companies, statement of principles or commitments; or

(B)

Participation in, affiliation with or status as a signatory to any coalition, initiative, joint statement of principles or agreement.

(v)

"This act" means W.S. 9
‑
5
‑
401 through 9
‑
5
‑
404.

9
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5
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403.

Contracts with governmental entities; requirements; exceptions.

(a)

Subject to subsections (b) and (c) of this section, no governmental entity shall enter into a contract with a company for goods or services unless the contract contains a written verification from the company that the company:

(i)

Does not engage in economic boycotts; and

(ii)

Will not engage in economic boycotts during the term of the contract.

(b)

This section shall apply only to contracts that are:

(i)

Between a governmental entity and a company with not less than ten (10) employees; and

(ii)

For a value of not less than one thousand dollars ($1,000.00), regardless of the number of companies who are parties to the contract.

(c)

This section shall not apply to a governmental entity that determines in writing that the requirements of this section:

(i)

Are inconsistent with the governmental entity's constitutional or statutory duties related to the issuance, incurrence or management of debt obligations or the deposit, custody, management, borrowing or investment of funds; or

(ii)

Prevent the governmental entity from obtaining the goods or services to be provided in an economically practicable manner.

9
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5
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404.

Interference with state contracts; remedies.

(a)

No person shall take any action that penalizes or threatens to penalize any financial institution for complying with this act.

(b)

Any party that violates subsection (a) of this section shall be deemed to have caused pecuniary harm to the state, including by interfering with the state's sovereign interests in administering its programs and with the state's commercial relationships with its financial institutions.

(c)

The attorney general or district attorney in the county where a violation of this act occurs may enforce this act and any contract subject to this act.

(d)

If the attorney general has reason to believe that a person has engaged in activity which violates the provisions of this act, the attorney general shall make an investigation to determine if this act has been violated, and, to the extent necessary for this purpose, may administer oaths or affirmations, and, upon his own motion or upon request of any party, may subpoena witnesses, compel their attendance, adduce evidence, and require the production of any matter which is relevant to the investigation, including the existence, description, nature, custody, condition and location of any books, documents or other tangible things and the identity and location of persons having knowledge of relevant facts or any other matter reasonably calculated to lead to the discovery of admissible evidence.

(e)

In addition to any other remedies available under law or equity, a company that enters into a contract with a government entity as required by this act and engages in any economic boycott during the term of the contract shall be liable to the governmental entity for damages in an amount equal to three (3) times the value of the contract.

Section 2.

This act shall apply to all contracts entered into on and after the effective date of this act.

Section 3.

This act is effective July 1, 2023
.

(END)

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SF0159