The bill amends the Energy Discrimination Elimination Act of 2022 by transferring enforcement authority from the State Treasurer to the Attorney General and introducing new definitions, including "boycott energy company" and "ordinary business purpose." It requires state governmental entities to report any exemptions taken under the act due to fiduciary responsibilities and repeals a section related to contracts with financial companies, while also removing political subdivisions from certain provisions of the act. The Attorney General will maintain an updated list of financial companies that boycott energy companies and will oversee the notification process and divestment timelines for state entities.

Additionally, the bill stipulates that state governmental entities may only cease divesting from listed financial companies if there is clear evidence that such action would lead to a loss of asset value or significant deviation from a benchmark strategy. Entities must provide a written justification report to the Attorney General and legislative leaders before ceasing divestment, with updates included in the annual report required by Section 12004. The bill also exempts state governmental entities from compliance if it conflicts with their fiduciary responsibilities and clarifies the Attorney General's role in implementing these provisions. It will take effect on July 1, 2025, with an emergency clause for immediate enforcement upon passage and approval.