Text of WY SF 159 (2023)

2023 STATE OF WYOMING 23LSO-0637 1 SF0159 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 1 AN ACT relating to the administration of government; 2 requiring parties to state contracts to certify that they 3 do not engage in boycotting or discrimination as specified; 4 providing definitions; providing legislative findings; 5 specifying applicability; and providing for an effective 6 date. 7 8 Be It Enacted by the Legislature of the State of Wyoming: 9 10 Section 1. W.S. 9-5-401 through 9-5-404 are created 11 to read: 12 13 CHAPTER 5 14 PROPERTY, BUILDINGS AND CONTRACTS 2023 STATE OF WYOMING 23LSO-0637 2 SF0159 1 2 ARTICLE 4 3 CERTIFICATIONS FOR STATE CONTRACTS 4 5 9-5-401. Legislative findings. 6 7 (a) The legislature finds that: 8 9 (i) Numerous essential American industries, 10 including fossil fuel production, agriculture, timber 11 production and firearms, are being targeted for boycotting, 12 divesting and sanctioning by large corporations and public 13 and private institutional investors; 14 15 (ii) The goal of these colluding parties is to 16 starve targeted legal industries of capital, restrict their 17 productivity and redirect that capital to favored 18 industries; 19 20 (iii) These parties are working in concert with 21 many state and federal lawmakers and regulators, as 22 evidenced by new climate disclosure rules from the United 23 States securities and exchange commission; 2023 STATE OF WYOMING 23LSO-0637 3 SF0159 1 2 (iv) Restricting the supply of energy and other 3 essential commodities, without effective substitutes for 4 those commodities, only serves to raise prices on 5 consumers, profoundly impacting the poorest among us; 6 7 (v) Denying financing to American companies, who 8 are among the most socially and environmentally responsible 9 companies in the world, only serves to support hostile 10 nations and less responsible producers; 11 12 (vi) Banks and insurance companies are 13 increasingly denying financing to creditworthy companies to 14 market their environmental credentials to the detriment of 15 consumers, shareholders and society; 16 17 (vii) Institutional investors are divesting from 18 entire industries and pressuring corporations to commit to 19 environmental goals, including reducing greenhouse gas 20 emissions to zero (0) by 2050, to burnish their 21 environmental credentials or to promote their own 22 environmental, social and governance funds at the expense 23 of investor returns; 2023 STATE OF WYOMING 23LSO-0637 4 SF0159 1 2 (viii) Large investment firms, through their 3 proxy votes on shareholder resolutions and board elections, 4 are colluding to force companies to direct money, time and 5 attention away from their core responsibility of increasing 6 shareholder returns and driving capital allocations and 7 political change outside the democratic process; 8 9 (ix) Corporations are boycotting and sanctioning 10 essential legal industries, including fossil fuel and 11 agriculture producers, by denying them capital, refusing to 12 provide them with products or services and imposing undue 13 burdens on them; 14 15 (x) The collusion of corporations and 16 institutions to boycott, divest from or sanction any 17 industry may violate existing antitrust and fiduciary duty 18 laws and harms consumers, shareholders and the state of 19 Wyoming; 20 21 (xi) States, when financially prudent, should 22 avoid doing business with companies that engage in 2023 STATE OF WYOMING 23LSO-0637 5 SF0159 1 potentially illegal conduct described in this section and 2 threaten harm to the state, its business and its citizens. 3 4 9-5-402. Definitions. 5 6 (a) As used in this act: 7 8 (i) "Company" means any for-profit organization, 9 association, corporation, partnership, joint venture, 10 limited partnership, limited liability partnership, joint 11 stock company or limited liability company, including a 12 wholly-owned subsidiary, majority-owned subsidiary, parent 13 company or affiliate thereof. "Company" does not include 14 sole proprietorships; 15 16 (ii) "Economic boycott" means, without an 17 ordinary business purpose, refusing to deal with, 18 terminating business activities with or otherwise taking 19 any commercial action that is intended to penalize, inflict 20 economic harm on, limit commercial relations with or change 21 or limit the activities of a company because the company, 22 without violating state or federal law: 23 2023 STATE OF WYOMING 23LSO-0637 6 SF0159 1 (A) Engages in the exploration, production, 2 utilization, transportation, sale or manufacturing of 3 fossil fuel based energy, timber, mining or agriculture; 4 5 (B) Engages in, facilitates or supports the 6 manufacture, import, distribution, marketing, advertising, 7 sale or lawful use of firearms, ammunition, components, 8 parts and accessories of firearms or ammunition; 9 10 (C) Does not meet, is not expected to meet 11 or does not commit to meet environmental standards or 12 disclosure criteria to eliminate, reduce, offset or 13 disclose greenhouse gas emissions; 14 15 (D) Does not meet, is not expected to meet 16 or does not commit to meet corporate board, employment, 17 composition, compensation or disclosure criteria that 18 incorporates characteristics protected in this state as 19 specified by W.S. 27-9-105(a)(i); 20 21 (E) Does not facilitate, is not expected to 22 facilitate or does not commit to facilitate access to 23 abortion, sex or gender change or transgender surgery; 2023 STATE OF WYOMING 23LSO-0637 7 SF0159 1 2 (F) Does business with a company that 3 engages in one (1) or more of the practices described in 4 subparagraphs (A) through (E) of this paragraph. 5 6 (iii) "Governmental entity" means the state, 7 University of Wyoming, any local government or any agency, 8 board or commission thereof; 9 10 (iv) "Ordinary business purpose" means any 11 purpose that does not further social, political or 12 ideological interests. A company shall be deemed to have 13 taken an action or considered a factor that furthers a 14 social, political or ideological interest upon evidence of 15 a purpose that is found in, but not limited to: 16 17 (A) Branding, advertising, statements, 18 explanations, reports, letters to clients, communications 19 with portfolio companies, statement of principles or 20 commitments; or 21 2023 STATE OF WYOMING 23LSO-0637 8 SF0159 1 (B) Participation in, affiliation with or 2 status as a signatory to any coalition, initiative, joint 3 statement of principles or agreement. 4 5 (v) "This act" means W.S. 9-5-401 through 6 9-5-404. 7 8 9-5-403. Contracts with governmental entities; 9 requirements; exceptions. 10 11 (a) Subject to subsections (b) and (c) of this 12 section, no governmental entity shall enter into a contract 13 with a company for goods or services unless the contract 14 contains a written verification from the company that the 15 company: 16 17 (i) Does not engage in economic boycotts; and 18 19 (ii) Will not engage in economic boycotts during 20 the term of the contract. 21 22 (b) This section shall apply only to contracts that 23 are: 2023 STATE OF WYOMING 23LSO-0637 9 SF0159 1 2 (i) Between a governmental entity and a company 3 with not less than ten (10) employees; and 4 5 (ii) For a value of not less than one thousand 6 dollars ($1,000.00), regardless of the number of companies 7 who are parties to the contract. 8 9 (c) This section shall not apply to a governmental 10 entity that determines in writing that the requirements of 11 this section: 12 13 (i) Are inconsistent with the governmental 14 entity's constitutional or statutory duties related to the 15 issuance, incurrence or management of debt obligations or 16 the deposit, custody, management, borrowing or investment 17 of funds; or 18 19 (ii) Prevent the governmental entity from 20 obtaining the goods or services to be provided in an 21 economically practicable manner. 22 23 9-5-404. Interference with state contracts; remedies. 2023 STATE OF WYOMING 23LSO-0637 10 SF0159 1 2 (a) No person shall take any action that penalizes or 3 threatens to penalize any financial institution for 4 complying with this act. 5 6 (b) Any party that violates subsection (a) of this 7 section shall be deemed to have caused pecuniary harm to 8 the state, including by interfering with the state's 9 sovereign interests in administering its programs and with 10 the state's commercial relationships with its financial 11 institutions. 12 13 (c) The attorney general or district attorney in the 14 county where a violation of this act occurs may enforce 15 this act and any contract subject to this act. 16 17 (d) If the attorney general has reason to believe 18 that a person has engaged in activity which violates the 19 provisions of this act, the attorney general shall make an 20 investigation to determine if this act has been violated, 21 and, to the extent necessary for this purpose, may 22 administer oaths or affirmations, and, upon his own motion 23 or upon request of any party, may subpoena witnesses, 2023 STATE OF WYOMING 23LSO-0637 11 SF0159 1 compel their attendance, adduce evidence, and require the 2 production of any matter which is relevant to the 3 investigation, including the existence, description, 4 nature, custody, condition and location of any books, 5 documents or other tangible things and the identity and 6 location of persons having knowledge of relevant facts or 7 any other matter reasonably calculated to lead to the 8 discovery of admissible evidence. 9 10 (e) In addition to any other remedies available under 11 law or equity, a company that enters into a contract with a 12 government entity as required by this act and engages in 13 any economic boycott during the term of the contract shall 14 be liable to the governmental entity for damages in an 15 amount equal to three (3) times the value of the contract. 16 17 Section 2. This act shall apply to all contracts 18 entered into on and after the effective date of this act. 19 20 Section 3. This act is effective July 1, 2023. 21 22 (END)