Texas House Bill HB57

Texas 2021 - 87th 2nd C.S.

Caption

Relating to state investments in social media companies that censor political speech.

Impact

The implications of HB 57 would significantly affect the investment strategies of state funds, including systems that oversee public employee and teacher retirements. State entities will be required to closely monitor their investments and execute divestment from any listed companies within designated periods, potentially leading to notable financial adjustments and reallocation of resources. The AG is assigned to maintain a list of these companies, which could entail ongoing administrative challenges and require consistent updates to reflect current practices in social media censorship.

Summary

House Bill 57 addresses the state's investment in social media companies that are perceived to censor political speech. The bill proposes that state governmental entities, such as retirement systems, cannot invest in companies that remove or restrict users based on their political viewpoints. A company may be classified as a 'listed company' if it engages in actions that silence or limit political speech, thereby compelling the state to divest from such entities within a specific timeframe outlined in the legislation.

Contention

The bill has sparked various discussions regarding the balance of free speech and corporate responsibility. Proponents argue that it is essential to safeguard political discourse in social media. Conversely, opponents may view this legislation as government overreach that could lead to burdensome regulations for companies and independence within the marketplace. In addition, concerns are raised over the practicality of the divestment process and its long-term financial implications for the state's investment portfolio.