Legislation/Guidance in Effect
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Title |
Key Dates |
Nature of |
ESG Category |
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| Treasurer Moore praises S&P Global Ratings as they discontinue ESG scores | Introduced 8/9/2023 |
Treasurer Position |
Restrict Use of ESG Factors; Focus on Pecuniary Characteristics | ■ West Virginia State Treasurer Riley Moore commended S&P Global Ratings for its recent decision to discontinue issuing ESG credit indicators as part of its ratings analyses. In April 2022, Treasurer Moore condemned this new subjective ratings scheme and called on the company to end it. Financial officers and state officials in Utah, Idaho and Kentucky also sent letters critical of the scheme. |
| Treasurer Moore Adds Four Financial Institutions to Restricted List Due To Fossil Fuel Boycotts | Adopted and in effect 4/8/2024 | Treasurer Position | Target Entities That Boycott Certain Industries | ■ State Treasurer Riley Moore announced he has added four financial institutions to the state’s Restricted Financial Institution List after determining these institutions are engaged in boycotts of fossil fuel companies as defined under state law. These institutions are Citigroup Inc., TD Bank, N.A., The Northern Trust Company, and HSBC Holdings, PLC. They join BlackRock Inc., Goldman Sachs Group Inc., JPMorgan Chase & Co., Morgan Stanley, and Wells Fargo & Co., which were initially added when the list was first published in July 2022. All institutions on the list will now be ineligible to provide banking services to the State. |
| State Treasurer warns Wall Street Banks against ESG-centric Boycotts |
Adopted and in effect 2/23/2024 |
Treasurer Position | Target Entities That Boycott Certain Industries | ■ State Treasurer Riley Moore warns Citibank, TD Bank, BMO Bank, Fifth Third Bank, Northern Trust and HSBC Holdings that they will be banned from business in West Virginia if they continue to boycott fossil fuels, which threatens the state's energy-rich economy. Unless these banks provide evidence by March 23, 2024, that "demonstrat[es] that [they are] not engaged in a boycott of energy companies"", these banks will be placed on the states "ban list" on April 7, 2024." |
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Effective date Adopted |
Legislation |
Target Entities That Boycott Certain Industries |
■ Establishes a duty that all shareholder votes by or on behalf of the West Virginia Investment Management Board and the Board of Treasury Investments are cast exclusively according to pecuniary factors. Explicitly states that ESG factors are not pecuniary factors, unless a prudent investor would determine that such a consideration directly and materially affects the financial risk or financial return to beneficiaries based on appropriate investment horizons consistent with an investment pool’s objectives and funding policy. |
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SB262: Relating Generally to Financial Institutions Engaged in Boycotts of Energy Companies |
Effective date 6/10/2022 Adopted Introduced |
Legislation |
Target Entities That Boycott Certain Industries |
■ Allows the Treasurer to maintain a list of financial institutions that boycott energy companies. ■ Allows the Treasurer to disqualify bids from listed institutions, to refuse to enter state banking contracts with them and to require an institution to verify in writing that it will not boycott energy companies during the contract term. ■ Does not apply to the West Virginia Investment Management Board. |
Pending Legislation
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Title |
Key Dates |
Nature of |
ESG Category |
|
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SB600: Specifying Requirements for Shareholder Voting by State Investment Management Board |
Introduced in 2023, carried over to 2024 |
Legislation |
Restrict Use of ESG Factors; Focus on Pecuniary Characteristics |
■ Ensures that all shareholder votes by or on behalf of the West Virginia Investment Management Board and the Board of Treasury Investments are cast according to the pecuniary interests of investment beneficiaries. |
Past/Inactive Legislation
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Title |
Key Dates |
Nature of |
ESG Category |
|
| HB 5616: Prohibiting Contracts, Affiliations or Employment of Entities that Support Actions Counter to the US Constitution and West Virginia Constitution | Introduced, but did not pass in the 2024 legislative session | Legislation | Restrict Use of ESG Factors; Focus on Pecuniary Characteristics |
■ The state government, as well as any entities that receive any funding by the State of West Virginia, may not undertake nor maintain any contracts with, affiliations with, or employment of, any corporations, companies, or other entities, including educational institutions or individuals, which: (1) Conducted actions or efforts to infringe on the Constitutional rights of Americans, including efforts coordinated with or voluntarily in support of the federal government, or any state or local governments; (2) Conducted actions or efforts designed to undermine the Constitution of West Virginia or the Constitution of the United States of America; (3) Supported abortion, genocide, terrorism, rape or racism; (4) Supported use of surgery or chemical means to attempt to alter the sex or sexual appearance of anyone under the age of 18; or (5) Use or incorporate environmental, social and governance (ESG) agendas as part of any financial activities or investments. ■ Contracts currently in force with the State of West Virginia shall be terminated at the earliest opportunity, ensuring services are maintained by contracting with entities which do not violate the above. ■ Entities funded by the state of West Virginia in any capacity that fail to, or refuse to, enforce the measures will receive a termination of any funding, and will be required to reimburse West Virginia for all funds provided during the fiscal year. ■ The Secretary of State, in coordination with the Governor, Attorney General, State Treasurer, and State Auditor, will maintain a list of corporations, companies, and other entities, including individuals, that have been identified as having conducted the activities in this section. The Secretary of State will annually present the list, or any updates, to the Joint Committee on Government and Finance. The Secretary of State, Attorney General, State Treasurer, and State Auditor will coordinate with their counterparts in the several states to determine if they maintain and will share similar lists of entities conducting the activities in this section. |
| Target Entities That Boycott Certain Industries | ||||
| HB5615: Prohibiting Contracts with Entities that Engage in Unlawful Activities | Introduced, but did not pass in the 2024 legislative session | Legislation | Restrict Use of ESG Factors; Focus on Pecuniary Characteristics |
■ The state government and any entities that receive any funding from the state of West Virginia, will not undertake nor maintain any contracts or affiliations with, or employment of, any corporations, companies, or other entities, including educational institutions or individuals, which have: (1) Conducted actions or efforts to infringe on the Constitutional rights of Americans, including efforts coordinated with or voluntarily in support of the federal government, or any state or local governments; (2) Conducted actions or efforts designed to undermine the Constitution of West Virginia or the Constitution of the United States of America; (3) Supported abortion, genocide, terrorism, rape, or racism; (4) Supported use of surgery or chemical means to attempt to alter the sex or sexual appearance of anyone under the age of 18; and (5) Use or incorporate ""environmental, social and governance"" (ESG) agendas as part of any financial activities or investments. ■ Contracts currently in force will be terminated at the earliest opportunity, ensuring services are maintained by contracting with entities which do not violate the above. ■ Entities funded by the state of West Virginia in any capacity that fail to, or refuse to, enforce the measures will receive a termination of any funding, and will be required to reimburse West Virginia for all funds provided during the fiscal year. Moreover, West Virginia government employees that fail to or refuse to terminate contracts in accordance with the above will be subject to termination for cause. ■ The Secretary of State, in coordination with the Governor, Attorney General, State Treasurer, and State Auditor, will maintain a list of corporations, companies, and other entities, including individuals, that have been identified as having conducted the activities in this section. The Secretary of State will annually present the list, or any updates, to the Joint Committee on Government and Finance. The Secretary of State, Attorney General, State Treasurer, and State Auditor will coordinate with their counterparts in the several states to determine if they maintain and will share similar lists of entities conducting the activities in this section. |
| Target Entities That Boycott Certain Industries | ||||
| Introduced, but did not pass in the 2024 legislative session | Legislation | Target Entities That Boycott Certain Industries |
■ Applies to contracts between government entities and companies with at least ten full-time employees, of a value of $100,000 or more that is paid wholly or partly from public funds of the governmental entity, entered into on or after the effective date of this act. ■ Prohibits such contracts for the purchase of goods or services unless the contract contains a written verification from the company that it does not have a practice, policy, guidance document, or directive that discriminates against a firearm entity or firearm trade association and will not discriminate against a firearm entity or firearm trade association during the term of the contract. |
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| SB214: Fair Access to Financial Services Act | Introduced, but did not pass in the 2024 legislative session | Legislation | Restrict Use of ESG Factors; Focus on Pecuniary Characteristics | ■ Requires financial institutions that utilize standards or guidelines based on nonfinancial, nontraditional, and subjective measures such as ESG criteria to (1) disclose to any state or federal authorities that oversee the financial institution the specific standards, guidelines, and criteria used by the financial institution to determine access or denial of a financial service to a person in West Virginia; and (2) to disclose and inform the financial institution and the person seeking financial services the specific rules, regulations, and policy associates with ESG that were used to deny financial services. |
| SB275: Relating to financial institutions engaged in boycotts of firearms companies | Introduced, but did not pass in the 2024 legislative session | Legislation | Target Entities That Boycott Certain Industries |
■ Allows the Treasurer to maintain a list of financial institutions that boycott firearms companies. ■ Allows the Treasurer to disqualify bids from listed institutions, to refuse to enter state banking contracts with them and to require an institution to verify in writing that it will not boycott firearms companies during the contract term. ■ Does not apply to the West Virginia Investment Management Board. ■ Similar to SB112 from the 2023 session. |
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SB186/SB350: Prohibiting financial institutions from discriminating against firearms businesses |
Introduced, but did not pass in the 2024 legislative session | Legislation | Target Entities That Boycott Certain Industries |
■ Prohibits financial institutions and governmental entities from discriminating against firearm entities because of such status. ■ Does not apply to financial institutions that choose not to provide services to a firearm entity for a business or financial reason, as a regulatory requirement, or when a financial institution has a written policy against discrimination against firearms businesses. ■ Authorizes the West Virginia Attorney General to bring an action to request a declaratory judgment, an injunction or a civil penalty not to exceed $20,000.00 per violation. ■ Similar to SB182, which failed to pass in the 2023 session. |
| HB4578: Firearms Industry Nondiscrimination Act | Introduced, but did not pass in the 2024 legislative session | Legislation | Target Entities That Boycott Certain Industries |
■ Prohibits state public entities from entering into a contract with a company for the purchase of goods or services worth at least $100,000 unless the company verifies in writing that it does not discriminate against firearms entities or trade associations and will not do so during the contract term. Applies to companies with 10+ full-time employees. ■ Similar to HB3400 from the 2023 session. |
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Introduced, but did not pass in the 2023 legislative session |
Legislation |
Target Entities That Boycott Certain Industries |
■ Prohibits banking institutions and payment networks that process payment card transactions between a firearms retailer or firearm purchaser from requiring the storage and tracking of firearm purchase details or firearm purchaser data. |
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| HB3084: Providing commercial discrimination of producers of coal, gas, oil, carbon-based energy, and other products | Introduced, but did not pass in the 2023 legislative session | Legislation | Target Entities That Boycott Certain Industries | ■ Prohibits investment of West Virginia Public Employees’ retirement funds into “restricted businesses” which divest from natural gas, oil, coal, petrochemicals, forestry products, or agriculture commodities. |
