CS/CS/HB 3 - Government and Corporate Activism Summary

• Investment restrictions: Requires government entities, retirement systems, and investment managers to base all investment decisions solely on "pecuniary factors" (financial risk/returns) and prohibits consideration of social, political, or ideological interests.

• ESG bond prohibition: Bans government entities from issuing environmental, social, and governance (ESG) bonds and prohibits spending public funds on ESG-related verification services, effective July 1, 2023.

• Financial institution compliance: Requires banks, financial institutions, and money services businesses to make service decisions based on quantifiable risk factors only; prohibits discrimination based on political beliefs, religious affiliations, firearm ownership, or industry sector (except law compliance); mandates annual attestations under penalty of perjury.

• Government contracting restrictions: Prohibits government agencies, school districts, colleges, and universities from requesting or considering vendors' social, political, or ideological interests when determining contractor responsibility or awarding contracts.

• Enforcement mechanisms: Authorizes the Attorney General to bring civil and administrative actions against violators; provides for attorney fees and costs recovery; establishes violations of the Florida Deceptive and Unfair Trade Practices Act; creates reporting requirements to the Attorney General for noncompliance.