Minnesota 2023-2024 Regular Session

Minnesota House Bill HF1902

Introduced
2/16/23  

Caption

State Board of Investment prohibited from investing in companies that boycott mining, energy production, production agriculture, or commercial lumber production; State Board required to divest; state entities prohibited from entering into contracts; banks, credit unions, and other financial institutions prohibited from discriminating against people based on subjective criteria; and civil penalties provided.

Impact

The proposed legislation significantly alters Minnesota's approach to state investments and contracts. By restricting financial engagements with companies purported to engage in boycotts against mining and energy sectors, this bill centralizes investment power and may lead to a broader questioning of corporate social responsibility in the state. This could also influence the behavior of businesses within Minnesota as they consider how their policies align with the state's investment and contracting criteria.

Summary

House File 1902 seeks to prohibit the State Board of Investment from investing in companies that boycott specific industries such as mining, energy production, agricultural production, or commercial lumber production. Additionally, the bill mandates that the State Board divest from such companies by July 1, 2028. The main goal of HF1902 is to prevent state investments in firms that do not adhere to state-defined criteria regarding environmental standards, thus addressing concerns regarding what proponents label as politicized economic practices.

Contention

The bill is likely to face opposition from environmental groups and proponents of corporate social responsibility who argue that such regulations undermine the ability of companies to enact positive change based on environmental, social, and governance (ESG) criteria. Critics contend that restricting state investment in response to these criteria could stifle necessary advances in ecological sustainability and create a chilling effect on corporate attempts to address social and environmental injustices.

Companion Bills

MN SF940

Similar To The Stop Environmental Social Governance (ESG) and Social Credit Score Discrimination Act

Previously Filed As

MN HF2806

State Board of Investment prohibited from investing in companies that boycott mining, energy production, production agriculture, or commercial lumber production; State Board of Investment required to divest from companies boycotting said industries; state agency contracts prohibited; and certain financial institution discrimination prohibited.

MN HF707

State Board of Investment prohibited from investing in assets that exclude Minnesota-based energy or natural resources companies or Minnesota-based agricultural or livestock companies, divestment of assets required, types of discrimination in financial services prohibited, civil penalties provided, and annual reports required.

MN SF1225

State Board of Investment investing in certain assets that exclude Minnesota-based energy or natural resources companies or Minnesota-based agricultural or livestock companies prohibition; divestment of these assets requirement; financial services discrimination prohibition

MN HB1309

State contracts with certain companies that boycott energy, mining, and production agriculture; and to provide for application.

MN SB255

Relating to state contracts with and investments in certain companies that boycott energy companies

MN SB224

Enacting the Kansas protection of pensions and businesses against ideological interference act, relating to ideological boycotts involving environmental, social or governance standards, requiring KPERS to divest from and prohibiting state contracts or the deposit of state moneys with entities engaged in such boycotts as determined by the state treasurer and prohibiting discriminatory practices in the financial services industry based on such boycotts.

MN HB2404

Enacting the Kansas protection of pensions and businesses against ideological interference act, relating to ideological boycotts involving environmental, social or governance standards, requiring KPERS to divest from and prohibiting state contracts or the deposit of state moneys with entities engaged in such boycotts as determined by the state treasurer and prohibiting discriminatory practices in the financial services industry based on such boycotts.

MN SB13

Relating to state contracts with and investments in certain companies that boycott energy companies.

MN SB16

Prohibiting discrimination by financial services companies on the basis of social credit score and requiring registered investment advisers to obtain written consent from clients prior to investing client moneys in mutual funds, equity funds, companies and financial institutions that engage in ideological boycotts.

MN S1595

Prohibits investment by State of pension and annuity funds in, and requires divestment from, companies involved in production or maintenance of nuclear weapons.

Similar Bills

HI HCR161

Requesting The Department Of Agriculture To Convene A Working Group To Review The Effectiveness Of The Relevant State Laws Governing Agricultural-based Commercial Operations.

HI HR140

Requesting The Department Of Agriculture To Convene A Working Group To Review The Effectiveness Of The Relevant State Laws Governing Agricultural-based Commercial Operations.

IL SB0198

TWP CODE-SOLAR/WIND FACILITIES

IL SB0160

TWP CODE-SOLAR/WIND FACILITIES

IL SB3103

TWP CODE-SOLAR/WIND FACILITIES

IL SB1597

REMEDIATION OF FLUID RELEASE

IL HB3146

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HI HB915

Relating To Health.