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 prior owner, rendering any associated interests void.

Furthermore, the bill outlines the responsibilities of the Secretary of State in relation to natural asset companies, including the revocation of their authority to operate within the state and the rejection of any related organizational documents. It also establishes that any contracts made with natural asset companies after July 1, 2025, will be considered void and unenforceable. Notably, the provisions of this Act do not apply to the South Dakota Retirement System, the State Investment Council, or any assets managed by the State Investment Council.