The bill establishes a framework for identifying and managing financial institutions that engage in discriminatory practices against energy companies, specifically those involved in fossil fuel-based energy. It authorizes the Secretary of State to create and maintain a "restricted financial institution list," which will include institutions that boycott energy companies without a reasonable business purpose. The Secretary of State is required to notify these institutions before they are added to the list, allowing them a chance to demonstrate compliance and avoid inclusion. Once published, the state treasurer and auditor are prohibited from entering into banking contracts with any institution on the list.

Additionally, the bill amends the definition of "discriminate" to include actions intended to penalize or inflict economic harm on a company, thereby broadening the scope of discriminatory practices that can be addressed. The act will take effect on July 1, 2025, and includes provisions for annual updates to the restricted financial institution list, ensuring that it remains current and relevant.

Statutes affected:
Introduced: 13-10-301