Us Congress 2023-2024 Regular Session

Us Congress House Bill HB317

Introduced
1/12/23  

Caption

Stop Environmental Calculations Act of 2023 or the SEC Act of 2023 This bill prohibits the Securities and Exchange Commission from requiring climate-related disclosures that are not material to investors.

Impact

If passed, HB317 would significantly limit the SEC's authority to enforce climate-related disclosure requirements, thereby impacting corporate transparency regarding environmental factors. Proponents of the bill argue that businesses should not be compelled to disclose information that does not directly affect their financial performance. They believe that this would foster a more favorable regulatory environment for companies, particularly those that are concerned about the costs associated with compliance. Moreover, advocates assert that such a change would focus investor attention on material financial information rather than environmental considerations that may not influence investment decisions.

Summary

House Bill 317, titled the 'Stop Environmental Calculations Act of 2023' or the 'SEC Act of 2023', seeks to amend the Securities Exchange Act of 1934. The primary objective of this bill is to prohibit the Securities and Exchange Commission (SEC) from requiring companies to make climate-related disclosures that are deemed not material to investors. This legislation arises from concerns amongst certain lawmakers regarding the scope and impact of climate-related reporting requirements mandated by the SEC, which they argue could impose unnecessary burdens on businesses without providing tangible benefits to investors.

Contention

The discussions surrounding HB317 highlight a divide among legislators and stakeholders on the necessity and implications of climate-related disclosures in the financial sector. Supporters contend that requiring such disclosures is an overreach that can lead to confusion and added operational costs for businesses. Opponents, however, may argue that reducing transparency around climate-related risks could hinder investors' decision-making processes and ultimately lead to negative financial consequences. The tension between regulatory authority and the need for corporate accountability adds a layer of complexity to this legislative effort.

Companion Bills

No companion bills found.

Previously Filed As

US HB257

Stop Environmental Calculations Act of 2025 or the SEC Act of 2025 This bill prohibits the Securities and Exchange Commission from requiring issuers of securities to make climate-related disclosures that are not material to investors.

US HR32

Supporting the current definition of materiality in the securities laws and opposing new disclosure requirements outside the core mission of the Securities and Exchange Commission.

US HB1807

Improving Disclosure for Investors Act of 2023

US HB4168

Mandatory Materiality Requirement Act of 2023

US SB2005

Mandatory Materiality Requirement Act of 2023

US HB4628

To amend the Securities Exchange Act of 1934 to require the Securities and Exchange Commission to disclose and report on non-material disclosure mandates, and for other purposes.

US HB2593

National Senior Investor Initiative Act of 2023 Senior Security Act of 2023

US HB8933

Original Securities and Exchange Atonement Act of 2024

US HB499

Securing American Families and Enterprises from People's Republic of China Investments Act or the SAFE from PRC Investments Act This bill requires certain issuers of securities and funds traded on an exchange to report on connections to China or the Communist Party of China. In particular, an issuer with specified connections to China must annually disclose a variety of details, including whether executive-level employees, senior directors, or board members are members of the Communist Party of China; interactions with the party; expenditures in China; expenditures in the United States regarding operations and lobbying activities; and the ability of the Public Company Accounting Oversight Board to audit the issuer. Additionally, an exchange-traded fund that invests in a Chinese company must annually disclose about that company ownership information, party involvement, whether the company participates in specified Chinese policies or activities, any ties to U.S.-sanctioned individuals, and the types of products or services produced by the company.

US HB448

Putting Investors First Act of 2023 This bill requires a proxy advisory firm to register with the Securities and Exchange Commission and prohibits an unregistered proxy advisory firm from using interstate commerce to provide proxy-voting advice, research, analysis, or recommendations to any client. With respect to these firms, the bill (1) establishes procedures for both registration and termination of registration; (2) requires each firm to employ an ombudsman, designate a compliance officer, and publicly disclose conflicts of interest; (3) allows issuers to assess and comment on proxy voting recommendations; and (4) prohibits unfair, coercive, or abusive practices. The bill establishes a private right of action against a proxy advisory firm that endorses an approved proposal that is not supported by the issuer and is found to be illegal.

Similar Bills

No similar bills found.