BOISE — A bill in the Idaho House would ban state contracts with companies that boycott  or threaten to boycott mining, energy, production agriculture and timber businesses.

House Bill 737 was prompted by concerns about business decisions driven by a company’s environmental, social and governance stances, known as ESG.

The Idaho Association of Commerce and Industry, the state’s largest business lobby, opposes it. So does Food Producers of Idaho, which includes agriculture and timber groups.

The bill would apply to contracts of at least $100,000 with a company that has 10 or more full-time employees. A state agency would be required to get written verification that the company with which it intends to contract does not boycott the sectors and will not do so during the contract term.

The proposed amendment to retirement system statutes says the state treasurer would “prepare, maintain and provide to the state governmental entity a list of all financial companies that boycott mining, energy, production agriculture or commercial timber companies.”

The list would be based on publicly available information and the treasurer’s direct requests for written verification that the financial company does not boycott the industries.

Association of Commerce and Industry President Alex LaBeau said the bill “is a solution in search of a problem.” It is poorly written and “creates a dictatorship within the Treasurer’s Office with no recourse.”

He said the state treasurer could blacklist a company — after determining it aims to invest in.

An agency could not invest with a company on the list until the treasurer removes it.

“So for a business, there is no process at all,” LaBeau said. “And the industries it is claiming to protect, we don’t want it and we’ve made that very clear.”

The Idaho Farm Bureau Federation has not taken a position on the bill, said Braden Jensen, deputy director of governmental affairs.

The House Ways and Means Committee on March 3 voted to introduce HB 737 and refer it to the House Business Committee, which as of March 15 had not held a hearing. Bill sponsors and co-sponsors could not be reached for comment.

House Speaker Scott Bedke, R-Oakley, said the bill is stalled and sponsors are redrafting it. He is not a sponsor or co-sponsor.

“There are some concerns about ( environmental, social and governance) scoring, and I share those concerns,” Bedke said.

He said it is possible the House and Senate could pass a joint resolution that opposes the use of environmental, social and governance scoring.

Also, the Interim Committee on Federalism, which meets between regular legislative sessions, could discuss the topic and develop a proposal for 2023.

“We need to be fair to the issue, but it’s fair to say most legislators believe it has no place in business decisions,” said Bedke, a rancher.

Most do not want to get between willing buyers and sellers, but there is also sentiment that the state should not conduct business with those who use the criteria, he said.