Bill > SF851

This bill, called the Stop Environmental Social Governance (ESG) and Social Credit Score Discrimination Act, establishes several key provisions targeting what the legislature perceives as discriminatory practices. First, it prohibits the State Board of Investment from investing in companies that "boycott" mining, energy production, agriculture, or commercial lumber production, defining a boycott as refusing to do business with or penalizing companies that do not meet certain environmental standards beyond existing laws. The bill requires the board to divest from such companies by July 1, 2030, and mandates annual reporting on these investments. Second, the bill prevents state agencies from entering into contracts with companies that boycott these specified industries, requiring vendors to certify they do not and will not engage in such boycotts, with potential civil penalties of $10,000 for violations. Third, the bill prohibits financial institutions from discriminating against individuals based on political affiliation or value-based criteria like social credit scores or environmental, social, and governance factors, allowing such institutions to use subjective standards only if they fully disclose and obtain written acknowledgment from customers. The bill includes a civil remedy allowing individuals to seek injunctive relief and damages if they are denied services. The legislation is set to take effect on July 1, 2025, and includes a severability clause to ensure that if any part of the act is found invalid, the remaining provisions can still be enforced.

Government Affairs

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF0851&ssn=0&y=2025