Purpose of the Bill

The bill aims to restrict the State of Minnesota and its agencies from financially supporting or partnering with companies that participate in boycotting specific industries. It also seeks to protect individuals from discrimination by financial institutions based on subjective criteria.

Main Provisions

• Investment Restrictions: The State Board of Investment is prohibited from investing in companies that boycott the mining, energy production, production agriculture, or commercial lumber production sectors.
• Divestment Requirement: The State Board of Investment must divest from any companies involved in boycotting the specified industries by a set deadline of July 1, 2030.
• Contract Prohibition: The state and its agencies are barred from entering into contracts with companies that engage in the specified industry boycotts.
• Review and Reporting: Affected companies can request reviews to challenge their listed status as boycott participants. The State Board must report annually on investments and divestments related to these companies.
• Legal Protections for the State Board: Exempts the board from legal obligations that would conflict with the divestment and investment restrictions.
• Financial Discrimination Prohibition: Financial institutions such as banks and credit unions are prohibited from discriminating against individuals based on subjective criteria.

Significant Changes to Existing Law

This bill introduces a new statutory framework, specifically targeting environmental and social governance (ESG) practices perceived to harm designated industries by boycotting them. It enforces financial penalties and reporting requirements as deterrents.

Relevant Terms

• Boycott
• State Board of Investment
• Mining
• Energy production
• Agriculture
• Commercial lumber
• Environmental Social Governance (ESG)
• Social credit score
• Financial discrimination