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 natural asset companies, including the encumbrance or sale of public land and resources, and forbids the investment of state funds in such companies. Additionally, it mandates that any natural asset acquired by a natural asset company must revert to its previous owner, rendering any associated interests void.

Furthermore, the bill outlines the responsibilities of the Secretary of State in revoking the authority of natural asset companies to operate within the state and prohibits the acceptance of any related organizational documents. Contracts with natural asset companies entered into after July 1, 2025, will be deemed void and unenforceable. However, the bill clarifies that its provisions do not apply to the South Dakota Retirement System, the State Investment Council, or any assets managed by the State Investment Council. This legislation aims to protect state resources and ensure that public land and assets are not compromised by the interests of natural asset companies.