prohibit natural asset companies.

HB 1318 prohibits South Dakota from engaging with or investing in "natural asset companies," defined as for-profit entities that manage ecological resources like soil, biodiversity, or water quality for financial gain. The bill bans state contracts, investments, and bonds involving these companies, prohibits them from operating in the state, and voids any contracts entered after July 1, 2026. It also requires the Secretary of State to revoke business licenses for such companies and prevents natural assets (e.g., land, water rights) from being transferred to them. The law applies broadly to corporations and LLCs classified as natural asset companies but excludes state retirement systems and investment councils.