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HF2806 (Legislative Session 94 (2025-2026))

State Board of Investment prohibited from investing in companies that boycott mining, energy production, production agriculture, or commercial lumber production; State Board of Investment required to divest from companies boycotting said industries; state agency contracts prohibited; and certain financial institution discrimination prohibited.

Related bill: SF851

AI Generated Summary

Purpose of the Bill

This bill aims to restrict the financial activities of the State of Minnesota and its entities in relation to companies that engage in boycotts against specific industries. The focus is on protecting economic activities linked to mining, energy production, production agriculture, and commercial lumber production.

Main Provisions

  • Prohibition of Investment: The State Board of Investment is prohibited from investing in companies that participate in boycotts against the specified industries. This applies specifically to publicly traded securities.
  • Mandatory Divestment: The State Board of Investment is required to divest from any holdings in companies identified as engaging in these boycotts by July 1, 2030.
  • Contract Restrictions: The state and its agencies are prohibited from entering into contracts with companies that boycott the mentioned industries.
  • Financial Institution Regulations: Banks and similar entities cannot discriminate against individuals or companies based on subjective criteria related to their involvement with these industries.
  • Review and Reporting: Affected companies can request a review if they are listed as boycotting. An annual report to legislative committees is mandated, detailing which companies are involved and the investment values affected.

Significant Changes to Existing Law

  • New Obligations for the State Board of Investment: The bill creates new investment restrictions and divestment obligations which are exempt from conflicting legal obligations.
  • Increased Reporting Requirements: The bill mandates more detailed reporting from the State Board of Investment to ensure transparency and compliance.

Relevant Terms

  • Environmental Social Governance (ESG)
  • Boycott
  • Divestment
  • Mining, Energy, Agriculture, Lumber
  • Investment Restrictions
  • Financial Discrimination

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 25, 2025HouseFloorActionIntroduction and first reading, referred toState Government Finance and Policy

Citations

 
[
  {
    "analysis": {
      "added": [
        "Implementation of guidelines to prevent investments in companies boycotting specific industries."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill addresses the application of existing requirements to assets in the Minnesota combined investment funds as established under section 11A.14.",
      "modified": [
        "Clarifies the scope of investment restrictions related to the combined investment fund."
      ]
    },
    "citation": "11A.14",
    "subdivision": ""
  }
]

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