SB 714 Oklahoma Senate · 2025 Regular Session

Energy Discrimination Elimination Act of 2022; transferring enforcement authority to Office of the Attorney General; modifying reporting, disclosure, and judicial provisions for state governmental entities. Effective date. Emergency,

SB 714 prohibits Oklahoma state retirement systems from using retirement funds to boycott fossil fuel companies without a financial reason. It defines "boycott" as actions penalizing energy companies based on environmental or political views rather than financial return, and transfers enforcement to the Attorney General. The law shields state officials from lawsuits for investment decisions made under this rule and blocks private lawsuits challenging retirement fund investments. This directly affects state retirement systems managing public funds, requiring them to prioritize financial returns over political or environmental objections in investment choices.

Issues: ✗ Energy ✗ Environment

Bill status in committee 1 of 4 stages cleared

Introduction

Feb 2025

Committee Review

Floor Vote

Governor

Introduced Feb 3, 2025 Last action Feb 19, 2025

Maddy AI version diff · 2 comparisons

What changed between versions

SB714 (3-24-25) (RADER) FS FA1.PDF → Floor (Senate) · 5 edits

MODERATE

This bill amends the Energy Discrimination Elimination Act of 2022 to clarify definitions, expand exemptions for state officials, and remove restrictions on legal proceedings. The changes ensure state retirement assets can be invested without political pressure while protecting officials from liability when making investment decisions.

Scope change

The bill's scope remains focused on state retirement system investments but clarifies which entities and individuals are protected from legal action when managing those investments.

DEFINITION

Updated definitions of key terms like 'financial company' and 'boycott energy company' to clarify what constitutes prohibited investment practices.

EXEMPTIONS

Added explicit exemptions for state governmental entities and their officials from conflicting legal obligations when making investment decisions.

ENFORCEMENT

Added indemnification provisions to protect state employees, contractors, and officials from lawsuits related to investment decisions made under the act.

REQUIREMENT

Removed references to noncodification and certain procedural requirements that were in the original version.

TECHNICAL

Changed the document title from 'Floor Substitute' to 'Senate Floor Version' and updated authorship information.

Introduced → SB714 (3-24-25) (RADER) FS FA1.PDF · 5 edits

MODERATE

SB 714 was amended to remove provisions allowing state retirement systems to boycott energy companies based on environmental concerns, aligning the bill with the Oklahoma Constitution's requirement that retirement assets be used exclusively for beneficiary benefits. The amendment also added a new legislative intent section clarifying this constitutional conflict and expanded definitions to include shareholder voting on environmental issues as a form of boycott.

Scope change

The bill's scope was narrowed by removing provisions that would have allowed state retirement systems to divest from fossil fuel companies based on environmental, social, political, or ideological concerns. The amendment also added a new section establishing that such actions violate the Oklahoma Constitution.

SCOPE

Added a new legislative intent section stating that using state retirement system assets to boycott energy companies violates Section 12 of Article XXIII of the Oklahoma Constitution, which requires retirement assets to be used exclusively for beneficiary benefits.

DEFINITION

Modified the definition of 'Boycott energy company' to include shareholder voting on proposals that penalize or inflict economic harm on companies as a form of boycott, expanding what actions constitute a boycott.

Modified the definition of 'Ordinary business purpose' to include actions taken in furtherance of environmental, social, political, or ideological interests as potentially constituting a boycott without ordinary business purpose.

ELIGIBILITY

Removed provisions that would have exempted state governmental entities from fiduciary obligations when making investment decisions based on environmental or ideological considerations under the Energy Discrimination Elimination Act.

ENFORCEMENT

Added a provision indemnifying and defending former employees, former governing body members, and former officers in addition to current employees and officers when acting under the Energy Discrimination Elimination Act.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 13, 2025

Upper · Passed

Reported Do Pass Energy committee; CR filed

upper

Feb 3, 2025

Introduced

First Reading

upper

2 primary · 0 co-sponsors