SB-13 bans state entities from investing in firms that “boycott” fossil fuel based energy companies. In the lawsuit, one group says SB-13 violates the constitution.
TEXAS, USA — Senate Bill 13 prohibits state entities in Texas from investing in financial companies that “boycott energy companies.” The Act first took effect September 1, 2021.
However, on August 29, 2024, the American Sustainable Business Council (ASBC) filed a lawsuit against Glenn Hegar, the Texas Comptroller of Public Accounts and Texas Attorney General Ken Paxton over SB-13.
The state defines, “boycott energy company,” as follows:
“[…] without an ordinary business purpose, refusing to deal with, terminating business activities with, or otherwise taking any action that is intended to penalize, inflict economic harm on, or limit commercial relations with a company because the company: (A) Engages in the exploration, production, utilization, transportation, sale, or manufacturing of fossil fuel-based energy and does not commit or pledge to meet environmental standards beyond applicable federal …