Oklahoma Gov. Kevin Stitt makes it law—the state will no longer do business with financial firms that discriminate against oil and gas companies.
After legislative approval, House Bill 2034 was sent to the governor who signed the measure last week. Officially known as the “Energy Discrimination Elimination Act,” the new law will require the state treasurer to create a list of financial companies that are boycotting fossil fuel energy companies.
Sen. Mark Allen, R-Spiro, the bill’s Senate author had stated, “This legislation would ensure the state of Oklahoma is free from discrimination against the fossil-fuel industry and does not support corporations that put political ideology ahead of the interests of taxpayers, shareholders and residents.”
Upon the measure being signed, the Senator added, “Oil and gas is the backbone of our state’s economy, and it’s crucial that we do all in our power to fully support this industry,” Allen said. “I’m proud to have carried this measure that will make our state free of discrimination against the fossil fuel industry, and am glad my colleagues see the importance of standing up against corporations that put political ideology ahead of the interests of our taxpayers, shareholders and residents.”
The House author was Rep. Mark McBride of Moore who called the measure ““good for Oklahoma.”
Under the proposal, companies working with the state would need to verify they do not have such policies in place to continue their contracts.
If no notice is received, or if the company has a policy in place to prevent work with energy companies, those corporations would have a window to make changes before the state divests its assets.
The entity also must send a written notice to the financial company warning that it may become subject to divestment and offer the company the opportunity to clarify its activities. A state governmental entity must rid itself of at least 50% of the assets of a listed financial company within 180 days of the financial company receiving notice and 100% of the assets within 360 days after notice unless a loss of assets can be proven.
Entities also must report to the treasurer, the Legislature and the state’s attorney general any securities sold, redeemed, divested, or withdrawn from a listed financial company.
HB2034 takes effect Nov. 1.