MN HF4779

State Board of Investment prohibited from investing in assets that intentionally exclude Minnesota-based energy, natural resources, agricultural, or livestock companies based on environmental, social, or governance ratings.

State Board must divest 50 percent of non-compliant direct holdings within 9 months and 100 percent within 15 months of the effective date, with exemptions for indirect holdings in actively managed investment funds.

State Board must submit annual reports by January 15 to legislative committees listing divested investments and describing progress in requesting fund managers to remove or create alternative funds without excluded assets.

Banks, credit unions, financial institutions, payment processors, savings and loan associations, and trust companies prohibited from refusing or terminating financial services based on political affiliation or value-based/impact-based criteria including social credit scores and environmental, social, and governance factors.

Financial institutions must fully disclose and explain subjective standards to customers before entering contracts and obtain signed acknowledgment, with violations subject to $10,000 civil penalties.