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 outcomes, 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 investments or bond offerings, and mandates that any state funds cannot be allocated to these entities. Additionally, it establishes that any natural asset company cannot operate or acquire interests in the state, and if such a company were to gain ownership of a natural asset, that ownership would revert to the previous owner.

Furthermore, the bill empowers state agencies, political subdivisions, or private citizens adversely affected by violations of this law to file legal actions in circuit court, with the possibility of recovering attorney fees if they prevail. The Secretary of State is tasked with revoking the authority of any entity that becomes a natural asset company and is prohibited from accepting any related filings or granting business authority to these companies. Contracts with natural asset companies entered into after July 1, 2026, will be deemed void and unenforceable, although the provisions do not apply to the South Dakota Retirement System or the State Investment Council.