Relating to state investments in social media companies that censor political speech.
If enacted, SB21 will amend the Government Code by introducing Chapter 809A, which establishes that state funds, including retirement systems and educational funds, cannot be allocated to social media companies that are identified as censoring political speech. The bill mandates that a list of such companies will be maintained by the attorney general, which will serve as the basis for divestment decisions by state entities. This could significantly impact state finances and investments, especially if major firms are found to restrict political speech, prompting legislative compliance and potential financial repercussions.
Senate Bill 21, introduced by Senator Kolkhorst, pertains to the regulations surrounding state investments in social media companies that engage in censorship of political speech. The bill aims to prohibit state governmental entities from having direct or indirect investments in companies that censor political discourse on their platforms. This legislation reflects ongoing national conversations about free speech, specifically regarding how social media companies manage content that may be politically sensitive or controversial.
A key point of contention surrounding SB21 arises from the balance between protecting free speech and the potential overreach of the state into private business operations. Critics may argue that this bill sets a concerning precedent for state interference, essentially punishing companies for their content moderation policies. Furthermore, the bill could lead to financially detrimental decisions for state investment portfolios if states are compelled to divest from profitable companies based on subjective interpretations of 'censorship'. Supporters, however, contend that it is necessary to hold social media platforms accountable for what they consider an infringement upon freedom of political expression.
The implementation of this bill would involve oversight from the attorney general, who will be responsible for regularly updating the list of companies that engage in censorship. State entities are required to follow strict timelines for divestment if they are found to hold shares in any such company, with specified procedures for notifying and enforcement. The bill aims for transparency and accountability in state investment practices while promoting the idea that political speech should not be suppressed on major platforms in which states hold investments.