Text of SD HB 1208 (2023)

23.391.14 98th Legislative Session 1208 2023 South Dakota Legislature House Bill 1208 Introduced by: Representative Aylward Underscores indicate new language. Overstrikes indicate deleted language. An Act to prevent government entities from entering contracts with companies that 1 promote certain economic boycotts. 2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 3 Section 1. That chapter 37-1 be amended with a NEW SECTION: 4 Terms used in this Act mean: 5 (1) "Company," a for-profit organization, association, corporation, partnership, joint 6 venture, limited partnership, limited liability partnership, or limited liability 7 company, and including a wholly owned subsidiary, majority-owned subsidiary, 8 parent company, or affiliate of those entities or business associations. For purposes 9 of this section, the term does not include sole proprietorships; 10 (2) "Economic boycott," refusing to deal with, terminating business activities with, or 11 otherwise taking any commercial action that is intended to penalize, inflict 12 economic harm on, limit commercial relations with, or change or limit the activities 13 of a company, for the primary purpose of achieving social, political, or ideological 14 interests, because the company, without violating controlling federal or state law: 15 (a) Engages in the exploration, production, utilization, transportation, sale, or 16 manufacturing of, fossil fuel-based energy, timber, mining or agriculture; 17 (b) Engages in, facilitates, or supports the manufacture, distribution, sale, or 18 use of firearms; 19 (c) Does not meet, is not expected to meet, or does not commit to meet 20 corporate board, or employment, composition, compensation, or disclosure 21 criteria that incorporates characteristics protected under chapter 20-13; 22 (d) Does not facilitate, is not expected to facilitate, or does not commit to 23 facilitate access to abortion, sex or gender change, or transgender surgery; 24 or 25 (e) Does business with a company described above. 26 23.391.14 2 1208 Underscores indicate new language. Overstrikes indicate deleted language. (3) "Governmental entity," a state agency or political subdivision of this state; and 1 (4) "Ordinary business purpose," does not include any purpose to further social, 2 political, or ideological interests. A company may reasonably be determined to have 3 taken an action, or considered a factor, with a purpose to further social, political, 4 or ideological interests based upon evidence indicating such a purpose, including: 5 (a) Branding, advertising, statements, explanations, reports, letters to clients, 6 communications with portfolio companies, statements of principles, or 7 commitments; or 8 (b) Participation in, affiliation with, or status as a signatory to, any coalition, 9 initiative, joint statement of principles, or agreement. 10 Section 2. That chapter 37-1 be amended with a NEW SECTION: 11 No state agency, elected or appointed official or employee of this state, or political 12 subdivision of this state may, under any governmental authority, enter into a contract 13 that is paid wholly or partly from public funds of the governmental entity, with any 14 company for goods or services unless the contract contains a written verification from the 15 company that it does not engage in economic boycotts and will not engage in economic 16 boycotts during the term of the contract. 17 Section 3. That chapter 37-1 be amended with a NEW SECTION: 18 Section 2 of this Act does not apply to any governmental entity that determines 19 the requirements are inconsistent with the governmental entity's constitutional or 20 statutory duties related to the issuance, incurrence, or management of debt obligations 21 or the deposit, custody, management, borrowing, or investment of funds; or the 22 requirements prevent the governmental entity from obtaining the supplies or services to 23 be provided in an economically practicable manner. 24 Section 4. That chapter 37-1 be amended with a NEW SECTION: 25 No party, whether the federal government, state government, or any of its 26 agencies, departments, or political subdivisions, may take action to penalize or threaten 27 to penalize any company or financial institution affiliated with said company for compliance 28 with sections 1 to 4, inclusive, of this Act. 29 Section 5. That chapter 37-1 be amended with a NEW SECTION: 30 23.391.14 3 1208 Underscores indicate new language. Overstrikes indicate deleted language. Sections 1 to 4, inclusive, of this Act, must be enforced by the attorney general. If 1 the attorney general has reasonable cause to believe that any person or entity has 2 engaged in, is engaging in, or is about to engage in a violation of sections 2 to 4, inclusive, 3 of this Act, the attorney general must investigate by subpoenaing any record, book, 4 document, account, paper, or other relevant materials relating to such practice. Upon 5 finding a probable violation, the attorney general must seek a declaratory judgment that 6 the party is in violation of this chapter, and seek to nullify the terms of any contract 7 entered into in violation of this chapter. 8