SB205: AN ACT relating to state dealings with companies that engage in energy company boycotts.

Legislative Summary

Create new sections of KRS Chapter 41 to declare findings regarding the financial harms of boycotting energy companies for dealing in fossil-fuel based energy; define terms; require the State Treasurer to publish, maintain, and update a list of financial companies engaged in energy company boycotts and to file the list with the Legislative Research Commission and the Attorney General; require state governmental entities to notify the Treasurer of the listed financial companies in which the state governmental entity owns direct or indirect holdings; require state governmental entities to inform and warn listed financial companies that they may become subject to divestment by the state governmental agency unless they clarify their actions or cease their energy company boycott; require state governmental entities to divest from the listed financial company if it does not cease its energy company boycott in the timeframes established by the section; provide for delays in the divestment schedule if it will result in a loss of value or a benchmark deviation; require for delays in divestment to be reported to the Treasurer, the Legislative Research Commission, and the Attorney General; provide that a state governmental entity shall not be required to divest from any holdings in actively or passively managed investment funds or private equity funds; provide for exceptions from divestment requirements; require that beginning on December 1, 2023, and each December 1 thereafter, each state governmental agency shall file a report with the Treasurer, the Attorney General, and the Legislative Research Commission identifying the divestments it made and the investments prohibited under the Act; allow the Attorney General or the Treasurer to enforce Sections 1 to 4 and 5 of the Act; prohibit a governmental entity from entering into a contract for goods or services with a company that engages in energy company boycotts; provide exceptions; amend KRS 286.2-015 to conform.