AZ SB1611

Public entities cannot require companies to implement environmental, social, or governance (ESG) standards policies as a condition of entering into or renewing contracts for services, supplies, information technology, goods, or construction services.

Public entities cannot adopt procurement, investment, or other policies designed to induce or require companies to implement ESG standards policies.

"Company" is defined as a for-profit organization with ten or more full-time employees, including corporations, partnerships, subsidiaries, and other business entities.

"ESG standards policy" includes policies furthering international or domestic environmental/social agreements, corporate governance based on social characteristics, and social or environmental goals.

"Public entity" includes the state, political subdivisions, state agencies, Arizona Board of Regents universities, and community college districts.