Wisconsin Assembly Bill AB722

Wisconsin 2023-2024 Regular Session

• Introduced: 12/6/23
• Refer: 12/6/23
• Failed: 4/15/24

Caption

Prohibited considerations in awarding state or local financial assistance.

Impact

If enacted, AB722 will amend the current statutory framework to explicitly prevent state agencies and local governmental units from factoring in an applicant's participation in covered activities when awarding financial assistance. This will centralize control over financial decisions, aiming to streamline funding processes while reducing the influence of social considerations that some legislators argue complicate decision-making and expose grant processes to bias.

Summary

Assembly Bill 722 aims to establish new restrictions on how state and local authorities award financial assistance, such as grants and loans. The core premise of the bill is to prohibit discrimination against individuals based on their involvement in specific sectors, notably production agriculture and fossil fuel industries. Crucially, the bill disallows considering social and governance factors, including diversity, equity, and inclusion policies when granting financial support.

Contention

The bill has generated considerable debate among legislators and advocacy groups. Proponents argue that the legislation is necessary to ensure that state and local bodies do not unfairly penalize individuals involved in crucial industries like agriculture and fossil fuels, which they contend are vital for economic stability. On the other hand, opponents raise concerns that excluding social and governance criteria could undermine important policy goals designed to foster inclusion and address equity issues within the funding landscape.

Legislative context

This bill is set against a backdrop of shifting attitudes towards financial assistance programs and their associated criteria in Wisconsin. By limiting the considerations for awarding funds to merely economic factors, the legislation reflects a trend toward deregulating such awards, potentially leading to significant implications for various sectors, especially those traditionally viewed as having a detrimental environmental impact.