Oklahoma 2022 Regular Session

Oklahoma House Bill HB2034 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	An Act
2		-	ENROLLED HOUSE
3		-	BILL NO. 2034 By: McBride, O'Donnell, West
4		-	(Kevin), Bashore, and
5		-	Roberts (Sean) of the House
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	28	+	ENGROSSED SENATE AMENDMENT
	29	+	TO
	30	+	ENGROSSED HOUSE
	31	+	BILL NO. 2034 By: McBride, O'Donnell and West
	32	+	(Kevin) of the House
6	33
7	34		and
8	35
9		-	Allen, David, Bullard, and
10		-	Bergstrom of the Senate
	36	+	Taylor of the Senate
11	37
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	42	+	An Act relating to state contracts; declaring the oil
	43	+	and gas industry a vital economic partner;
	44	+	prohibiting state contracts without c ertain written
	45	+	certification; prohibiting adoption of procurement,
	46	+	investment or other policy that requires a person to
	47	+	boycott the oil and gas industry; authorizing
	48	+	approval of contracts and waiving of applications;
	49	+	defining terms; providing for codificat ion; and
	50	+	providing an effective date.
16	51
17	52
18		-	An Act relating to state government; creating the
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	54	+
	55	+
	56	+	AUTHOR: Remove as principal Senate author Taylor and substitute as
	57	+	principal Senate author Allen and a dd the following Senate
	58	+	coauthors: David and Bullard
	59	+
	60	+	AMENDMENT NO. 1. Page 1, strike the title, enacting clause and
	61	+	entire bill and insert
	62	+
	63	+
	64	+	“An Act relating to state government; creating the
19	65		Energy Discrimination Elimination Act of 2022;
20	66		defining terms; exempting certain entities from
21	67		provisions of act due t o statutory obligations;
22	68		providing indemnification for certain entities ;
23	69		prohibiting certain persons and entities from
24	70		entering into a lawsuit with state or state
25	71		affiliate; providing any person entering a lawsuit
26	72		against state or state affiliate pursuant to this act
27	73		be subject to certain costs and fees; requiring State
28		-	Treasurer to maintain list of cert ain financial
	74	+	Treasurer maintain list of cert ain financial
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29	101		companies; establishing provisions for Treasurer
30	102		action pursuant to act; requiring written
31	103		verification be submit ted by certain financial
32	104		companies; requiring written notic e be provided to
33	105		certain financial companies; providing that certain
34	106		financial companies cease certain boycotts by certain
35	107		date; requiring sale, redemption, divestment, or
36	108		withdrawal of certain sec urities; establishing
37	109		schedule for sale, redemption, divest ment, or
38	110		withdrawal of certain securities; establishing
39	111		limitations on divestment and divestment schedu le;
40	112		requiring report to certain public officials upon
41	113		delay of divestment schedule; requiring report to
42	114		certain public officia ls upon decision to cease
43	115		divestment from certain financial company;
44	116		prohibiting acquisition of s ecurities from certain
45	117		financial companies; providing for publishing of
46		-	report by state governmental entities to certain ~~ENR. H. B. NO. 2034 Page 2~~
	118	+	report by state governmental entities to certain
47	119		public officials; requiring state gove rnmental
48	120		entities to receive written verification from certain
49	121		companies before entrance into cer tain contracts;
50	122		providing for codification; and providing an
51	123		effective date.
52	124
53	125
54	126
55		-
56		-	SUBJECT: State contracts
57		-
58	127		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
59		-
60	128		SECTION 1. NEW LAW A new sec tion of law to be codified
61	129		in the Oklahoma Statutes as Section 12001 of Title 74, unless there
62	130		is created a duplication in numbering, reads as follows:
63		-
64	131		This act shall be known and may be cite d as the "Energy
65	132		Discrimination Elimi nation Act of 2022".
66		-
67	133		SECTION 2. NEW LAW A new section of law to be codified
68	134		in the Oklahoma Statutes as Section 12002 of Title 74, unless there
69	135		is created a duplication in numbering, reads as fol lows:
70		-
71	136		A. As used in the Energy Discr imination Elimination Act of
72	137		2022:
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73	163
74	164		1. "Boycott energy company " means, without an ordinary business
75	165		purpose, refusing to deal with, terminating business activities
76	166		with, or otherwise taking any action that is intended to penali ze,
77	167		inflict economic harm on, or limit commercial relatio ns with a
78	168		company because the company:
79		-
80	169		a. engages in the explo ration, production, utilization,
81		-	transportation, sale, or manufacturing of fossil ~~-fuel-~~
	170	+	transportation, sale, or manufacturing of fossil fuel -
82	171		based energy and does not commit or pledge to meet
83	172		environmental standards beyo nd applicable federal and
84	173		state law, or
85		-
86	174		b. does business with a company described by subpa ragraph
87	175		a of this paragraph;
88		-
89	176		2. "Company" means a for-profit sole proprietorship,
90	177		organization, association, corporation, partnership, j oint venture,
91		-	limited partnership, limited liability part nership, or limited ~~ENR. H. B. NO. 2034 Page 3~~
92		-	liability company, including a wholly owned subsidiary, majority-
	178	+	limited partnership, limited liability part nership, or limited
	179	+	liability company including a wholly owned subsidiary, majority-
93	180		owned subsidiary, parent company, or affiliate of those entities or
94	181		business associations, that exists to make a pr ofit;
95		-
96	182		3. "Treasurer" means the State Treasurer or their designee;
97		-
98	183		4. "Direct holdings" means, with respect to a finan cial
99	184		company, all securities of that financial company held directly by a
100	185		state governmental entity in an account or fund in which a stat e
101	186		governmental entity owns al l shares or interests;
102	187
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103	213		5. "Financial company" means a publicly traded financial
104	214		services, banking, or investment company;
105		-
106	215		6. "Indirect holdings" means, with respect to a financial
107	216		company, all securities of that financial com pany held in an account
108	217		or fund, such as a mutual fund, m anaged by one or more persons not
109	218		employed by a state governme ntal entity, in which the state
110	219		governmental entity owns shares or interests together with other
111		-	investors not subject to the provisions of this act. The term does
112		-	not include money investe d under a plan described by Section 401(k)
113		-	or 457 of the Internal Revenue Code of 1986;
114		-
	220	+	investors not subject to the provisions of this chapter. The term
	221	+	does not include money investe d under a plan described by Section
	222	+	401(k) or 457 of the Inter nal Revenue Code of 1986;
115	223		7. "Listed financial company " means a financial company listed
116	224		by the Treasurer; and
117		-
118	225		8. "State governmental e ntity" means all state retire ment
119	226		systems.
120		-
121	227		B. With respect to actions taken in compliance with the Energy
122		-	Discrimination Elimination Act ~~of 2022,~~ including all good-faith
	228	+	Discrimination Elimination Act including all good faith
123	229		determinations regarding financial companies as required by this
124	230		act, a state governmental en tity and the Treasurer are exempt from
125	231		any conflicting statutory or common law obligations including any
126	232		obligations with respect to making investments, divesting from any
127	233		investment, preparing or maintaining any list of financial
128	234		companies, or choosing as set managers, investment fund s, or
129	235		investments for the state governmental entity 's securities
130	236		portfolios.
131	237
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132	263		C. In a cause of action based on an action, inaction, decision,
133	264		divestment, investment, financial company communication, report, or
134	265		other determination made or taken in connectio n with the Energy
135		-	Discrimination Elimination Act of 2022, the state shall indemnify ENR. H. B. NO. 2034 Page 4
136		-	and hold harmless for actual damages, court costs, and attorney fees
137		-	adjudged against, and defend:
138		-
	266	+	Discrimination Elimination Act, the state shall indemnify and hold
	267	+	harmless for actual damages, court costs, and attorney fees adjudged
	268	+	against, and defend:
139	269		1. An employee, a member of the governing body, or any other
140	270		officer of a state governmental entity;
141		-
142	271		2. A contractor of a state governmental entity;
143		-
144	272		3. A former employe e, a former member of the governing body, or
145	273		any other former officer of a state governmental entity who was an
146	274		employee, member of the g overning body, or other offic er when the
147	275		act or omission on which the damages are based occurred;
148		-
149	276		4. A former contract or of a state governmental entity who was a
150	277		contractor when the act or omission on which the damages are based
151	278		occurred; and
	279	+	5. A state governmental entity.
	280	+	D. 1. A person including a member, retiree, or beneficiary of
	281	+	a retirement system to which the E nergy Discrimination Elimination
	282	+	Act applies, an association, a research firm, a financial company,
	283	+	or any other person shall not sue or pursue a private cause of
	284	+	action against the state, a sta te governmental entity, a current or
	285	+	former employee, a member of the governing body, or any other
	286	+	officer of a state governmental entity, or a contractor of a state
152	287
153		-	5. A state governmental entity.
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155		-	D. 1. A person, including a member, retiree, or beneficiary of
156		-	a retirement system to which the E nergy Discrimination Elimination
157		-	Act of 2022 applies, an association, a research firm, a financial
158		-	company, or any other person shall not sue or pursue a private cause
159		-	of action against the state, a sta te governmental entity, a current
160		-	or former employee, a member of the governing body, or any other
161		-	officer of a state governmental entity, or a contractor of a state
162		-	governmental entity, for any clai m or cause of action , including
	313	+	governmental entity, for any clai m or cause of action includin g
163	314		breach of fiduciary duty, or for violation of any constitutional,
164	315		statutory, or regulato ry requirement in connection with any action,
165	316		inaction, decision, divestment, investment, financial company
166	317		communication, report, or oth er determination made or take n in
167	318		connection with this ac t.
168		-
169	319		2. A person who files suit against the state, a state
170	320		governmental entity, an employee, a member of the governing body, or
171	321		any other officer of a state governmental entity, or a contractor of
172	322		a state governmental entity, is liable for paying the costs and
173	323		attorney fees of a person sued in violation of this sectio n.
174		-
175	324		3. A state governmental entity shall not be subject to any
176	325		requirement of this act if the state governmental entity determines
177	326		that such requirement would be inco nsistent with its fiduciary
178	327		responsibility with respect to the investment of entity assets or
179	328		other duties imposed by law relating to the in vestment of entity
180		-	assets. ENR. H. B. NO. 2034 Page 5
181		-
	329	+	assets.
182	330		SECTION 3. NEW LAW A new section of law to be codified
183	331		in the Oklahoma Statutes as Section 12003 of Title 74, unless there
184	332		is created a duplication in numbering, reads as follows:
185		-
186		-	A. 1. The Treasurer shall prepare and maintain and provide to
187		-	each state governmental entity a list of financial companies that
	333	+	A. 1. The Treasurer shall prepare and maintain, and provide to
	334	+	each state governmental entity, a list of financial companies that
188	335		boycott energy companies. In maintaining the list, the Treasurer
189	336		may:
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190	362
191	363		a. review and rely, as appro priate in the Treasurer's
192	364		judgment, on publicly available information regarding
193	365		financial companies including information provided by
194	366		the state, nonprofit or ganizations, research firms,
195	367		international organizations, and governmental
196	368		entities, and
197		-
198	369		b. request written verification from a financial company
199	370		that it does not boycott energy companies and rely, as
200	371		appropriate in the Treasurer's judgment and without
201	372		conducting further investigation, resear ch, or
202	373		inquiry, on a financial company 's written response to
203	374		the request.
204		-
205	375		2. A financial company that fails to provide to the Treasurer a
206	376		written verification under subparagraph b of paragraph 1 of this
207	377		subsection before the sixty-first day after receivin g the request
208	378		from the Treasurer is presumed to be boycotting energy companies.
209		-
210	379		3. The Treasurer shall update the list annually or more often
211	380		as the Treasurer considers necessary, but not more often than
212	381		quarterly, based on information from, among other s ources, those
213	382		listed in subparagraph a of paragraph 1 of this subsection.
214		-
215	383		4. Not later than the thirtieth day after the date the list of
216	384		financial companies that boycott energy companies is first provided
217	385		or updated, the Treasurer shall file the list with the presiding
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218	412		officer of each house of the Legislature and the Attorney General
219	413		and post the list on a publicly available Internet website.
220		-
221		-	5. The Treasurer may retain third-party consultants to assist
	414	+	5. The Treasurer may retain third party consultants to assist
222	415		in the implementation of the provisions of this act.
223		-
224	416		B. Not later than the thirtieth day after the date a state
225		-	governmental entity receives the list provided under paragraph 1 of ~~ENR. H. B. NO. 2034 Page 6~~
	417	+	governmental entity receives the list provided under paragraph 1 of
226	418		subsection A of this section, the state governmental entity shall
227	419		notify the Treasurer of the listed financial companies in which the
228	420		state governmental entit y owns direct holdings or indir ect holdings.
229		-
230	421		C. 1. For each listed financial company identified under
231	422		paragraph 1 of subsection A of this section, the state governmental
232	423		entity shall send a writt en notice:
233		-
234	424		a. informing the financial company of its status as a
235	425		listed financial company,
236		-
237	426		b. warning the financial company that it may become
238	427		subject to divestment by state governmental entities
239	428		after the expiration of the period described by
240	429		paragraph 2 of this subsection, and
241		-
242	430		c. offering the financial company t he opportunity to
243	431		clarify its activities related to companies described
244	432		by paragraph 1 of subsection A of this section.
245		-
246	433		2. Not later than the ninetieth day after the date the
247	434		financial company rec eives notice under paragraph 1 of this
248	435		subsection, the financial company shall cease boycotting energy
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249	462		companies to avoid qualifying for divestment by state governmental
250	463		entities.
251		-
252	464		3. If, during the time provided by paragraph 2 of this
253	465		subsection, the financial company ceases boy cotting energy
254	466		companies, the Treasurer shall remove the financial company from the
255	467		list maintained under paragraph 1 of subsection A of this section ,
256	468		and this subsection will no longer apply to the financial company
257	469		unless it resumes boycotting energy com panies.
258		-
259	470		4. If, after the time prov ided by paragraph 2 of this
260	471		subsection expires, the financial company continues to boycott
261	472		energy companies, the state governmental entity shall sell, redeem,
262	473		divest, or withdraw all publicly trade d securities of the fina ncial
263	474		company, except securities de scribed by subsection E of this
264	475		section, according to the schedule provided under subsection D of
265	476		this section.
266		-
267	477		D. 1. A state governmental entity required to sell, redeem,
268	478		divest, or withdraw all publicly traded securit ies of a listed
269	479		financial company shall comply with the following schedule:
270		-	ENR. H. B. NO. 2034 Page 7
271	480		a. at least fifty percent (50%) of those assets shall be
272	481		removed from the state governmental entity 's assets
273	482		under management not later than the one-hundred-
274	483		eightieth day after the date the financial company
275	484		receives notice pursuant to paragraph 1 of subsection
276	485		C of this section unless the state governmental entity
277		-	determines, based on a good -faith exercise of its
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	512	+	determines, based on a good faith exercise of its
278	513		fiduciary discretion and subject to subparagr aph b of
279	514		this subsection, that a later date is more prudent,
280	515		and
281		-
282	516		b. One hundred percent (1 00%) of those assets shall be
283	517		removed from the state governmental entity 's assets
284	518		under management not later than the three-hundred-
285	519		sixtieth day after the date the fi nancial company
286	520		receives notice pursuant to paragraph 1 of subsection
287	521		C of this section.
288		-
289	522		2. If a financial company that ceased boycotting energy
290	523		companies after receiving notice pursuant to paragraph 1 of
291	524		subsection C of this section resumes its boycott, the state
292	525		governmental entity shall send a written notice to the financial
293	526		company informing it that the state governmental entity will sell,
294	527		redeem, divest, or withdraw all publicly traded securities of th e
295	528		financial company according to the schedule in p aragraph 1 of
296	529		subsection D of this section.
297		-
298	530		3. Except as provided by paragraph 1 of subse ction D of this
299	531		section, a state governmental entity may delay the schedule for
300	532		divestment under that subsection onl y to the extent that the state
301	533		governmental entity determines, in the stat e governmental entity's
302		-	good-faith judgment, and consistent with ~~the~~ entity's fiduciary
	534	+	good faith judgment, and consistent with t he entity's fiduciary
303	535		duty, that divestment from listed financial companies will likely
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304	562		result in a loss in value or a benchmark deviation described by
305	563		paragraph 1 of subsection F of this se ction.
306		-
307	564		4. If a state governmental entity delays the schedule for
308	565		divestment, the state governmental entity shall submit a report to
309	566		the Treasurer, the presiding officer of each hous e of the
310		-	Legislature, and the Attorney General stating the reasons and
	567	+	Legislature and the Attorney General stating the reasons and
311	568		justification for the delay in divestment by the state governmental
312	569		entity from listed financial companies. The report shall include
313	570		documentation supporting its determination that the divestment would
314	571		result in a loss in value or a be nchmark deviation descri bed by
315		-	paragraph 1 of subsection F of this section including objective ~~ENR. H. B. NO. 2034 Page 8~~
	572	+	paragraph 1 of subsection F of this section including objective
316	573		numerical estimates. The state governmental entity shall update the
317	574		report every six (6) months.
318		-
319	575		E. A state governmental entity is not required to divest from
320	576		any indirect holdings i n actively or passively managed investment
321	577		funds or private equity funds. The state governmental entity shall
322	578		submit letters to the managers of each investment fund containing
323	579		listed financial companies requesting that they remove t hose
324	580		financial companies from the fund or create a similar actively or
325	581		passively managed fund with indirect holdings devoid of listed
326	582		financial companies. If a manager creates a similar fund with
327	583		substantially the same management fees and same level of in vestment
328	584		risk and anticipated return, the state governmental entity may
329	585		replace all applicable investments with investments in the similar
	586	+
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330	612		fund in a time frame consistent with prudent fiduciary standards b ut
331		-	not later than the four-hundred-fiftieth day after the date the fund
	613	+	not later than the four hundred fiftieth day after the date the fund
332	614		is created.
333		-
334	615		F. 1. A state governmental entity may cease divesting f rom one
335	616		or more listed financial companies only if clear and convincing
336	617		evidence shows that:
337		-
338	618		a. the state governmental entity has suffered or will
339	619		suffer a loss in the value of assets under management
340	620		by the state governmental entity as a result of having
341	621		to divest from listed financial companies under this
342	622		subsection, or
343		-
344	623		b. an individual portfolio tha t uses a benchmark-aware
345	624		strategy would be subject to an aggregate e xpected
346	625		deviation from its benchmark as a result of having to
347	626		divest from listed financial companies under this
348	627		subsection.
349		-
350	628		2. A state governmental entity may cease divesting from a
351	629		listed financial company as provided by this section only to the
352	630		extent necessary to ensure that the state governmental entity does
353	631		not suffer a loss in value or d eviate from its benchmark as
354	632		described by paragraph 1 of this subsection.
355		-
356	633		3. Before a state gover nmental entity may cease divesting from
357	634		a listed financial company u nder this section, the state
358	635		governmental entity shall provide a written report to the Treasurer,
	636	+
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359	662		the presiding officer of each house of the Legislature, and the
360		-	Attorney General setting forth the reason and justification, ~~ENR. H. B. NO. 2034 Page 9~~
	663	+	Attorney General setting forth the reason and justification,
361	664		supported by clear and convincing evidence, for deciding to cease
362	665		divestment or to remain invested in a listed financial co mpany. The
363		-	state governmental entity shall update the report required by ~~this~~
	666	+	state governmental entity shall update the report required by
364	667		subsection semiannually, as applicable.
365		-
366	668		4. This section does not apply to reinvestment in a financial
367	669		company that is no longer a listed financial company.
368		-
369	670		G. Except as provided in subsection F of this section, a state
370	671		governmental entity shall not acquire securities o f a listed
371	672		financial company.
372		-
373	673		SECTION 4. NEW LAW A ne w section of law to be codified
374	674		in the Oklahoma Statutes as Section 12004 of Title 74, unless there
375	675		is created a duplication in numbering, reads as follows:
376		-
377	676		A. Not later than Jan uary 1 of each year, each state
378	677		governmental entity shall file a publicly ava ilable report with th e
379	678		Treasurer, the presiding officer of each house of the Legislature,
380	679		and the Attorney General that:
381		-
382	680		1. Identifies securities sold, redeemed, divested, o r withdrawn
383	681		in compliance with subsection D of Section 3 of this act;
384		-
385	682		2. Identifies prohibited investments under subsection F of
386	683		Section 3 of this act; and
387		-
388	684		3. Summarizes any changes made under subsection E of Section 3
389	685		of this act.
390	686
	687	+	ENGR. S. A. TO ENGR. H. B. NO. 2034 Page 14 1
	688	+	2
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391	712		B. The Attorney General may bring any action necessary to
392	713		enforce the Energy Discrimination Elimination Act of 2022.
393		-
394	714		SECTION 5. NEW LAW A new section of law to be codifi ed
395	715		in the Oklahoma Statutes as Section 12005 of Title 74, unless there
396	716		is created a duplication in numbering, reads as follows:
397		-
398	717		A. As used in this section only of th e Energy Discrimination
399	718		Elimination Act of 2022, "governmental entity" means a state agency
400	719		or political subdivision of this state.
401		-
402	720		B. 1. Except for paragraph 4 of this subsection, th is section
403	721		applies only to a contract that:
404		-	ENR. H. B. NO. 2034 Page 10
405	722		a. is between a governmenta l entity and a company with
406	723		ten or more full-time employees, and
407		-
408	724		b. will pay a company One Hundred Thousand Dollars
409	725		($100,000.00) or more over the term of the contract
410	726		that is to be paid wholly or partly from public funds
411	727		of the governmental entit y; provided, however, the
412	728		provisions of this paragraph shall apply separately to
413	729		all companies in a multiple party contract.
414		-
415	730		2. Except as provided by paragraph 4 of this subsection, a
416	731		governmental entity shall not enter into a contract with a company
417	732		for goods or services unless the contract contains a written
418	733		verification from the company that it:
	734	+	a. does not boycott energy companies, and
419	735
420		-	a. does not boycott energy companies, and
	736	+	ENGR. S. A. TO ENGR. H. B. NO. 2034 Page 15 1
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421	760
422	761		b. will not boycott energy companies during the term of
423	762		the contract.
424		-
425	763		3. Except as provided by paragraph 4 of this subsection, a
426	764		governmental entity shall not enter into a contract for goods or
427	765		services with a listed financial company under Section 3 of this
428	766		act.
429		-
430	767		4. Paragraphs 2 and 3 of this subsection shall not apply to:
431		-
432	768		a. a governmental entity that determines the requirement s
433	769		of paragraphs 2 or 3 of this subsection are
434	770		inconsistent with the governmental entity 's
435	771		constitutional or statutory duties related to the
436	772		issuance, incurrence, or management of debt
437	773		obligations or the deposit, custody, management,
438	774		borrowing, or investmen t of funds, and
439		-
440	775		b. a contract for which a governmental body determ ines
441	776		the supplies or services to be provided are not
442	777		otherwise reasonably a vailable from a company that is
443	778		not a listed financial company under Section 3 of this
444	779		act.
445		-
446	780		SECTION 6. NEW LAW A new se ction of law to be codified
447	781		in the Oklahoma Statutes as Sectio n 12006 of Title 74, unless there
448	782		is created a duplication in numbering, reads as follows:
449		-	ENR. H. B. NO. 2034 Page 11
450	783		Section 5 of the Energy Disc rimination Elimination Act of 2022
451	784		applies only to a contract entered into on or after the effective
	785	+
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452	811		date of this act. A contract entered into before that date is
453	812		governed by the law in effect on the date the contract was entered
454	813		into, and the former law is conti nued in effect for that purpose.
	814	+	SECTION 7. This act shall become effective November 1, 2022.”
455	815
456		-	SECTION 7. This act shall become effective November 1, 2022.
457		-	ENR. H. B. NO. 2034 Page 12
458		-	Passed the House of Representatives the 4th day of May, 2022.
	816	+	Passed the Senate the 26th day of April, 2022.
	817	+
	818	+
	819	+
	820	+	Presiding Officer of the Senate
	821	+
	822	+
	823	+	Passed the House of Representatives the ____ day of __________,
	824	+	2022.
	825	+
	826	+
	827	+
	828	+	Presiding Officer of the House
	829	+	of Representatives
	830	+
	831	+	ENGR. H. B. NO. 2034 Page 1 1
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	855	+
	856	+	ENGROSSED HOUSE
	857	+	BILL NO. 2034 By: McBride, O'Donnell and West
	858	+	(Kevin) of the House
	859	+
	860	+	and
	861	+
	862	+	Taylor of the Senate
	863	+
	864	+
	865	+
	866	+
	867	+
	868	+
	869	+
	870	+	An Act relating to state contracts; declaring the oil
	871	+	and gas industry a vital economic partner;
	872	+	prohibiting state contracts withou t certain written
	873	+	certification; prohibiting adoption of procurement,
	874	+	investment or other policy that requires a person to
	875	+	boycott the oil and gas industry; authorizing
	876	+	approval of contracts and waiving of applications;
	877	+	defining terms; providing for codifi cation; and
	878	+	providing an effective date.
	879	+
	880	+
	881	+
	882	+
	883	+
	884	+	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
	885	+	SECTION 8. NEW LAW A new section of law to be codified
	886	+	in the Oklahoma Statutes as Section 580 of Title 74, unless there is
	887	+	created a duplication in numbering, reads as follows:
	888	+	A. The State of Oklahoma hereby declares that the oil and gas
	889	+	industry is a vital part of the economy of the State of Oklahoma and
	890	+	that the state, and those companies that do business by and through
	891	+	the state, in the interest of the state's economic policy, should
	892	+	not boycott the oil and gas industry.
	893	+
	894	+	ENGR. H. B. NO. 2034 Page 2 1
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	918	+
	919	+	B. Except as provided in subsection D of this section, the
	920	+	state shall not enter into a contract with a company unless the
	921	+	company submits a written certificatio n that the company is not
	922	+	currently engaged in a boycott, in any manner, of the oil and gas
	923	+	industry that constitutes an integral part of business conducted or
	924	+	sought to be conducted with the state.
	925	+	C. The state shall not adopt a procurement, investment o r other
	926	+	policy that has the effect of inducing or requiring a person to
	927	+	boycott the oil and gas industry, or to boycott a person doing
	928	+	business with the oil and gas industry.
	929	+	D. The Oklahoma Secretary of State shall approve contracts or
	930	+	may waive application of this section on any contract with any state
	931	+	agency if the Secretary determines that compliance is not
	932	+	practicable.
	933	+	E. As used in this section:
	934	+	1. "Boycott" means engaging in a refusal to deal, terminating
	935	+	business activities or performing other ac tions that are intended to
	936	+	limit commercial relations with persons or entities doing business
	937	+	with the oil and gas industry;
	938	+	2. "Oil and gas industry" means any company that is engaged in
	939	+	exploration, production, refining, servicing and transportation of
	940	+	oil, natural gas or other petroleum products;
	941	+	3. "Company" means an organization, association, corporation,
	942	+	partnership, venture or other entity, its subsidiary or affiliate,
	943	+
	944	+	ENGR. H. B. NO. 2034 Page 3 1
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	967	+	24
	968	+
	969	+	that exists for profit -making purposes or to otherwise secure
	970	+	economic advantage;
	971	+	4. "Contract" means a written agreement between the state and a
	972	+	company to acquire or dispose of goods or services with an aggregate
	973	+	price of more than One Hundred Thousand Dollars ($100,000.00).
	974	+	Contract does not mean a written agreement between the s tate and an
	975	+	individual to acquire or dispose of goods or services, including
	976	+	employment or consultant services; and
	977	+	5. "State" means this state or an agency, board, commission or
	978	+	department of this state.
	979	+	SECTION 9. This act shall become effective November 1, 2021.
	980	+	Passed the House of Representatives the 9th day of March, 2021.
459	981
460	982
461	983
462	984
463	985		Presiding Officer of the House
464	986		of Representatives
465	987
466		-	Passed the Senate the 26th day of April, 2022.
	988	+
	989	+	Passed the Senate the ___ day of __________, 2021.
467	990
468	991
469	992
470	993
471	994		Presiding Officer of the Senate
472	995
473	996
474	997
475		-	OFFICE OF THE GOVERNOR
476		-	Received by the Office of the Governor this ____________________
477		-	day of ___________________, 20_______, at _______ o'clock _______ M.
478		-	By: _________________________________
479		-	Approved by the Governor of the State of Oklahoma this _____ ____
480		-	day of ___________________, 20_______, at _______ o'clock _______ M.
481		-
482		-
483		-	_________________________________
484		-	Governor of the State of Oklahoma
485		-
486		-	OFFICE OF THE SECRETARY OF STATE
487		-	Received by the Office of the Secretary of State this __________
488		-	day of ___________________, 20_______, at __ _____ o'clock _______ M.
489		-	By: _________________________________