SB 262 — Relating generally to financial institutions engaged in boycotts of energy companies

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262—NEWS “ARELEASES BILLHELPFUL toLINKS amendEnrolled theVersion Code- ofFinal WestVersion Virginia,« 1931,Senate asBill amended,262 byHistory addingOTHER theretoVERSIONS a —  newCommittee article,Substitute designated(2) §12‑1C‑1, |  §12‑1C‑2,Committee §12‑1C‑3,Substitute §12‑1C‑4,(1) §12‑1C‑5, |  §12‑1C‑6,Introduced andVersion §12‑1C‑7, |  all |  relatingEmail generallyKey: to financial institutions engaged in boycotts of energy companies;

Green = existing Code.

Red = new code to be enacted WEST virginia legislature regular session ENROLLED Committee Substitute for Committee Substitute for Senate Bill 262 By Senators Phillips, Grady, Martin, Maynard, Karnes, Hamilton, and Woodrum [Passed March 12, 2022;

in effect 90 days from passage]   AN ACT to amend the Code of West Virginia, 1931, as amended, by adding thereto a new article, designated §12‑1C‑1, §12‑1C‑2, §12‑1C‑3, §12‑1C‑4, §12‑1C‑5, §12‑1C‑6, and §12‑1C‑7, all relating generally to financial institutions engaged in boycotts of energy companies;

and exempting the Investment Management Board from the new article.”article.  

Be it enacted by the Legislature of West Virginia:

ARTICLE 1C.

Financial institutions engaged in boycotts of energy companies.

§12‑1C‑1.

Definitions.

(a) For the purposes of this article, the following terms shall have the following meanings:

(1) “Banking contract” means a contract entered into by the Treasurer and a financial institution pursuant to this chapter, to provide banking goods or services to a spending unit.

(2) “Boycott of energy companies” means without a reasonable business purpose, refusal to deal with a company, termination of business activities with a company, or another action that is intended to penalize, inflict economic harm on, or limit commercial relations with a company because the company:

(A) Engages in the exploration, production, utilization, transportation, sale, or manufacturing of fossil fuel‑based energy;

(B) Engages in the exploration, production, utilization, transportation, sale, or manufacturing of fossil fuel‑based energy and does not commit or pledge to meet environmental standards beyond applicable federal and state law;

or (C)  Does business with a company that engages in the exploration, production, utilization, transportation, sale, or manufacturing of fossil fuel‑based energy.

(3) “Company” means any sole proprietorship, organization, association, corporation, partnership, joint venture, limited partnership, limited liability partnership, limited liability company, or other entity or business association, including all wholly owned subsidiaries, majority‑owned subsidiaries, parent companies, or affiliates of those entities or business associations, that exist for the purpose of making profit.

(4) “Financial institution” means a bank, national banking association, non‑bank financial institution, a bank and trust company, a trust company, a savings and loan association, a building and loan association, a mutual savings bank, a credit union, or a savings bank.

(5) “Reasonable business purpose” includes any purpose directly related to:

(A) Promoting the financial success or stability of a financial institution;

(B) Mitigating risk to a financial institution;

(C) Complying with legal or regulatory requirements;

or (D) Limiting liability of a financial institution.

(6) “Restricted financial institution” means a financial institution included in the most recently updated restricted financial institution list.

(7) “Restricted financial institution list” means the list of financial institutions prepared, maintained, and published pursuant to this article.

(8) “Treasurer” refers to the West Virginia State Treasurer.

§12‑1C‑2.

Restricted financial institutions list.

(a) The Treasurer is authorized to prepare and maintain a list of financial institutions that are engaged in a boycott of energy companies.

(b) The Treasurer must publicly post the restricted financial institution list on the Treasurer’s website and submit a copy of the list to the Governor, the President of the Senate, and the Speaker of the House of Delegates.

(c) A citation to this article and a brief summary of the purpose of the list must appear at the top of the list, including a statement that inclusion on the list is not an indication of unsafe or unsound operating conditions of any financial institution nor any risk to consumer deposits.

(d) The Treasurer must update the restricted financial institution list annually, or more often as the Treasurer considers necessary.

§12‑1C‑3.

Notice to financial institutions.

(a) Forty‑five days prior to including a financial institution on the restricted financial institution list, the Treasurer must send a written notice to the institution containing the following information:

(1) That the Treasurer has determined that the financial institution is a restricted financial institution;

(2) That the financial institution will be placed on the restricted financial institution list in 45 days unless, within 30 days following the receipt of the written notice, the restricted financial institution demonstrates that it is not engaged in a boycott of energy companies;

(3) That the restricted financial institution list is published on the Treasurer’s website;