SB 2649: Tennessee Prohibits Contracts with Financial Depositories that Boycott Fossil Fuel Companies
Summary
SB 2649 was enacted in May 2022 and prohibits the state treasurer from entering a contract with a state depository if the depository has a policy prohibiting financing to companies within the fossil fuel industry. The law provides an exemption for contracts for services necessary for the Department of Treasury of the state to function.
For purposes of the law, a company in the fossil fuel industry is defined as an entity "with at least fifty percent (50%) of its annual revenue obtained from business operations involving natural gas, oil, kerosene, petroleum, coal, hydrocarbon product, or any form of solid, liquid, or gaseous fuel derived from such material to produce heat for the generation of electricity." The bill responds to financial investors divesting from the fossil fuel industry.
Impacted Sectors
Additional Information
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