South Dakota House Bill HB1208

South Dakota 2023 Regular Session

• Introduced: 2/1/23
• Refer: 2/1/23

Caption

Prevent government entities from entering contracts with companies that promote certain economic boycotts.

Impact

The proposal would amend existing state law to establish a requirement for government contracts, mandating that companies certify they do not participate in any economic boycotts. This legislation is expected to create significant implications for state procurement processes. Supporters of the bill argue it will safeguard local businesses from political interference, while detractors may view it as an effort to limit corporate accountability for social issues. This may also influence how smaller or marginalized sectors voice their concerns in business dealings, as any form of economic protest could potentially jeopardize contracts with state entities.

Summary

House Bill 1208 aims to restrict government entities in South Dakota from entering contracts with companies that engage in certain economic boycotts. Specifically, the bill defines economic boycotts as actions taken against companies for social, political, or ideological reasons. The list of reasons includes companies involved in fossil fuels, firearms manufacturing, and those that do not support specific social agendas including abortion access and gender transition. This legislation is seen as a move to protect industries related to energy and firearms from potential boycotts which may arise from activism against those sectors.

Contention

Notable points of contention surrounding HB1208 include debates about the implications for corporate governance and social responsibility. Critics may raise concerns that the bill limits the power of consumers and voters to hold corporations accountable for their practices, especially in sectors connected to contentious social issues. The bill's advocates, however, argue that it aligns with protecting traditional industries from ideologically motivated boycotts that could economically harm the state. The enforcement of this bill would fall under the purview of the state attorney general, granting them authority to investigate and act against violators, thereby centralizing power in regulatory oversight.