The proposed bill aims to prohibit the establishment and operation of natural asset companies within the state of South Dakota. It defines a "natural asset" as various ecological resources and services, while a "natural asset company" is characterized as an entity that manages these resources for conservation or sustainable purposes and is recognized by the Securities and Exchange Commission. The bill explicitly prohibits the state from engaging in any business dealings with such companies, including the encumbrance or sale of public land and resources, and forbids the investment of state funds in these entities. Additionally, any contracts made with natural asset companies after July 1, 2025, will be deemed void and unenforceable.

Furthermore, the bill outlines the responsibilities of the Secretary of State in revoking the authority of any entity that becomes a natural asset company and prohibits the acceptance of any related organizational documents. It also allows for legal action by various stakeholders, including the Governor and private citizens, against violations of the Act, with provisions for the recovery of attorney fees. Notably, the bill exempts the South Dakota Retirement System and the State Investment Council from its provisions, ensuring that their operations remain unaffected.