State government; creating the Eliminate Economic Boycotts Act; requiring written verification in certain contracts; effective date.
Impact
If enacted, HB 1947 will require any company entering into contracts with governmental entities to provide written verification that they do not engage in economic boycotts. This act seeks to uphold Oklahoma's economic interests by ensuring that businesses that rely on governmental contracts are not penalized for participating in or supporting industries that face boycotts. The law will apply to contracts valued at $100,000 or more between a governmental entity and companies employing ten or more individuals, crucially influencing the state's business relationships with financial institutions.
Summary
House Bill 1947, known as the Eliminate Economic Boycotts Act, is legislation aimed at addressing perceived economic discrimination against essential American industries such as fossil fuels, agriculture, and firearms. The bill declares that entities in these sectors are being unfairly targeted by corporations and institutional investors who are divesting or sanctioning these industries for not aligning with specific environmental or ideological goals. The intention behind the bill is to protect these industries from harmful boycotts that, according to its supporters, increase costs for consumers and cause economic harm.
Contention
The bill has sparked debate regarding its implications for corporate rights and state governance. Critics argue that it may infringe upon the ability of companies to operate within socially responsible frameworks, particularly concerning environmental sustainability efforts. Moreover, there are concerns about the definition of 'economic boycotts' and how it could stifle businesses wanting to commit to social or environmental initiatives. Some view the bill as an overreach of state power that could ultimately harm Oklahoma's reputation in fostering a fair business environment, especially among ethically conscious investors.
State government; prohibiting the state or any political subdivision from entering into contracts with certain companies that engage in boycotts. Effective date.
Firearms; defining terms; providing applicability provision; prohibiting governmental entities from contracting with companies without certain written verification. Effective date.
Energy Discrimination Elimination Act of 2022; requiring state governmental entities to act in pecuniary interest of plan participants; requiring proxy votes to be reported to State Treasurer. Effective date.