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28	28	STATE OF OKLAHOMA
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30	30	1st Session of the 59th Legislature (2023)
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32	32	HOUSE BILL 2340 By: Lepak
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38	38	AS INTRODUCED
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40	40	An Act relating to government contracts; making
41	41	legislative findings with respect to certain
42	42	collusive activity; defining terms; prohibiti ng
43	43	certain government entities from entering into
44	44	certain contracts; specifying violative contractual
45	45	provisions; providing exceptions; prohibiting certain
46	46	actions with respect to financial institutions;
47	47	authorizing enforcement of act; authorizing Attorney
48	48	General to engage in discovery of information;
49	49	providing for recovery of treble damages; providing
50	50	for codification; and providing an effective date .
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56	56	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
57	57	SECTION 1. NEW LAW A new section of law to be codified
58	58	in the Oklahoma Statut es as Section 9301 of Title 74, unless there
59	59	is created a duplication in numb ering, reads as follows:
60	60	The Legislature finds that:
61	61	1. Numerous essential American industries —including fossil fuel
62	62	production, agriculture, timber production, and firearms —are being
63	63	targeted for boycotting, divesting, and sanctioning by large
64	64	corporations and public and private institutional investors;
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91	91	2. The goal of these colluding parties is to starve targeted
92	92	legal industries of capital, restrict their productivity, and
93	93	redirect that capital to favored industries;
94	94	3. These parties are working in concert with many state and
95	95	federal lawmakers and regulators , as evidenced most recently by new
96	96	climate disclosure rules from the United States Securities and
97	97	Exchange Commission;
98	98	4. Restricting the supply of energy and other essential
99	99	commodities, without effective substitutes for those commodities,
100	100	only serves to raise prices on consumers, profoundly impacting the
101	101	poorest among us;
102	102	5. Denying financing to American companies, who a re among the
103	103	most socially and environmentally responsible companies in the
104	104	world, only serves to support hostile nations and less responsible
105	105	producers;
106	106	6. Banks and insurance companies are inc reasingly denying
107	107	financing to creditworthy companies to marke t their environmental
108	108	credentials to the detriment of consumers, shareholders and society;
109	109	7. Institutional investors are divesting from entire ind ustries
110	110	and pressuring corporations to commit to environmental goals, such
111	111	as reducing greenhouse gas emissi ons to zero by 2050, to burnish
112	112	their environmental credentials or promote their own environmental,
113	113	social, and governance funds at the expense of i nvestor returns;
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140	140	8. Large investment firms, t hrough their proxy votes on
141	141	shareholder resolutions and board elections, are colluding to force
142	142	companies to direct money, time, and attention away from their core
143	143	responsibility of increasing shareholder retur ns, driving capital
144	144	allocation decisions and p olitical change outside the democratic
145	145	process;
146	146	9. Corporations are boycotting and sanctioning essential legal
147	147	industries, such as fossil fuel and agriculture producers, by
148	148	denying them capital, refusing to pr ovide them with products or
149	149	services or imposing undue burdens on them;
150	150	10. The collusion of corporations, and institutions to boycott,
151	151	divest from, or sanction any industry may violate existing antitrust
152	152	and fiduciary duty laws and harms consumers, share holders, and this
153	153	state; and
154	154	11. States, when financially prudent, should avoid doing
155	155	business with compani es that engage in such potentially illegal
156	156	conduct, and threaten harm to this state, its businesses, and
157	157	citizens.
158	158	SECTION 2. NEW LAW A new section of law to be codified
159	159	in the Oklahoma Statutes as Section 9302 of Title 74, unless there
160	160	is created a duplication in numbering, reads as follows:
161	161	As used in this act:
162	162	1. "Company" means a for-profit organization, associat ion,
163	163	corporation, partnership, joint venture, limited pa rtnership,
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190	190	limited liability partnership, or limited liability company,
191	191	including a wholly owned subsidiary, majority -owned subsidiary,
192	192	parent company, or affiliate of those entities or business
193	193	associations. For the purposes of this section, "company" does not
194	194	include sole proprietorships ;
195	195	2. "Governmental entity" means a state agency or political
196	196	subdivision of this state ;
197	197	3. "Ordinary business purpose " does not include any purpose to
198	198	further social, political, or ideological interests. A company may
199	199	reasonably be determined to have taken an action, or considere d a
200	200	factor, with a purpose to further social, political, or ideological
201	201	interests based upon evidence indicating such a purpose , including,
202	202	but not limited to branding, advertising, statements, explanations,
203	203	reports, letters to clients, communications with portfolio
204	204	companies, statements of principles, or commitments, or
205	205	participation in, affiliation with, or status as a signatory to, any
206	206	coalition, initiative, joint statement of principles, or a greement;
207	207	4. "Economic boycott" means, without an ordinary bu siness
208	208	purpose, refusing to deal with, terminating business activities
209	209	with, or otherwise taking any commercial action that is i ntended to
210	210	penalize, inflict economic harm on, limit commercial re lations with,
211	211	or change or limit the activities of a company b ecause the company,
212	212	without violating controlling federal or state law:
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239	239	a. engages in the exploration, production, utilizat ion,
240	240	transportation, sale, or manufacturing of, fossil
241	241	fuel-based energy, timber, mining, or agriculture ,
242	242	b. engages in, facilitates, or supports the manufacture,
243	243	import, distribution, marketing or advertising, sale,
244	244	or lawful use of firearms, ammunition or component
245	245	parts and accessories of firearms or ammunition ,
246	246	c. does not meet, is not expected to meet, or does not
247	247	commit to meet environmental standards or disclosure
248	248	criteria, in particular to eliminate, reduce, offset,
249	249	or disclose greenhouse gas emissions,
250	250	d. does not meet, is not expected to meet, or does not
251	251	commit to meet corporate board, or employment,
252	252	composition, compensation, or disclosure criteria that
253	253	incorporates characteristics protected in this state
254	254	under applicable federal or state law protecting civil
255	255	rights,
256	256	e. does not facilitate, is not expected to facili tate, or
257	257	does not commit to facilitate access to abortion, sex
258	258	or gender change, or transgender surgery; or
259	259	f. does business with a company described by
260	260	subparagraphs a through c of this paragraph.
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287	287	SECTION 3. NEW LAW A new section o f law to be codified
288	288	in the Oklahoma Statutes as Section 9303 of Title 74, unless there
289	289	is created a duplication in numbering, reads as follows:
290	290	A. This section applies only to a contract that:
291	291	1. Is between a governmental entity and a company with ten (10)
292	292	or more full-time employees; and
293	293	2. Will pay a company One Hundred Thousand Dollars
294	294	($100,000.00) or more over the term of the contract t hat is to be
295	295	paid wholly or partly from public funds of the governmental entity;
296	296	provided, however, the provisions of this paragraph shall apply
297	297	separately to all comp anies in a multiple party contract.
298	298	B. Except as provided by this section, a governmental entity
299	299	may not enter into a contract with a company for goods or services
300	300	unless the contract contains a written verification from the company
301	301	that it:
302	302	1. Does not engage in economic boycotts; and
303	303	2. Will not engage in economic boycotts during the term of the
304	304	contract.
305	305	C. Subsection B of this section does not apply to a
306	306	governmental entity that determines the req uirements of subsection B
307	307	of this section are inconsistent with the governmental entity's
308	308	constitutional or statutory dutie s related to the issuance,
309	309	incurrence, or management of debt obligations or the deposit,
310	310	custody, management, borrowing, or investmen t of funds or that
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337	337	prevent the governmenta l entity from obtaining the supplies or
338	338	services to be provided in an economicall y practicable manner.
339	339	SECTION 4. NEW LAW A new section of law to be codified
340	340	in the Oklahoma Statutes as Sect ion 9304 of Title 74, unless there
341	341	is created a duplication in numbering, reads as follows:
342	342	A. No party may take action to penalize or threaten to penalize
343	343	any financial institution for compliance with this a ct.
344	344	B. Any party taking such action shall have caused harm to this
345	345	state, including by interfering with the state's sovereign interests
346	346	in administering its p rograms and with the state 's commercial
347	347	relationships with its financial institutions.
348	348	SECTION 5. NEW LAW A new section of law to be codified
349	349	in the Oklahoma Statutes as Section 9305 of Title 74, unless there
350	350	is created a duplicat ion in numbering, reads as follows:
351	351	A. This act, or any contract subject to this a ct, may be
352	352	enforced by the Attorney General.
353	353	B. If the Attorney General has reasonable cause to believe that
354	354	a person has engaged in, is engaging in, or is about to engage in, a
355	355	violation of this article, the Attorney General may:
356	356	1. Require such person to file on such form s as the Attorney
357	357	General prescribes a statement or report in writin g, under oath, as
358	358	to all the facts and circumstances concern ing the violation, and
359	359	such other data and information as he may deem necessary ;
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386	386	2. Examine under oath any person in connection with the
387	387	violation;
388	388	3. Examine any record, book, document, account or paper as may
389	389	be necessary; and
390	390	4. Pursuant to an order of the district court, impound any
391	391	record, book, document, account, paper, or sample or material
392	392	relating to such practice and retain the same in his possession
393	393	until the completion of all pr oceedings undertaken under this act or
394	394	in the courts.
395	395	C. In addition to any other remedies available at law or
396	396	equity, a company that enters into a contract with a government
397	397	entity containing any v erifications required by Section 2 of this
398	398	act and engages in any economic boycott during the term of the
399	399	contract shall be obligated to pay damages to the state in an amount
400	400	equal to three times all monies paid to the company under the
401	401	contract.
402	402	SECTION 6. This act shall bec ome effective November 1, 2023.
403	403
404	404	59-1-5411 MAH 01/19/23

Oklahoma 2024 Regular Session

Oklahoma House Bill HB2340 Compare Versions