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2023 Summary of Legislation Passed Committee on Banking and Insurance <br />administrative action against such persons and recover attorney fees and costs when an <br />enforcement action is successful. <br />Bond Financing — Prohibition against ESG Bonds <br />The bill provides that bond issuers are prohibited from issuing any ESG bond. An ESG bond is <br />defined as any bond that has been designated or labeled as a bond that will be used to finance a <br />project with an ESG purpose, including, but not limited to, green bonds, Certified Climate <br />Bonds, GreenStar designated bonds, and other environmental bonds marketed as promoting a <br />generalized or global environmental objective; social bonds marketed as promoting a social <br />objective; and sustainability bonds and sustainable development goal bonds marketed as <br />promoting both environmental and social objectives. It includes bonds self -designated by the <br />issuer as ESG-labeled bonds and those designated as ESG-labeled bonds by a third -party verifier. <br />The bill also prohibits paying for a third -party verifier that certifies or verifies that a bond may <br />be designated or labeled as an ESG bond, renders opinions or produces a report on ESG <br />compliance, among other ESG-related services. Issuers are also prohibited from contracting with <br />a rating agency whose ESG scores for the issuer will have a direct, negative impact on the <br />issuer's bond ratings. <br />The bill provides that notwithstanding the provisions prohibiting unsafe and unsound practices <br />by financial institutions in,s. 655.0323, F.S., a financial institution may purchase and underwrite <br />bonds issued by a governmental entity. <br />The bill expressly applies to bonds issued and agreements made and contracts executed on or <br />after July 1, 2023. <br />Procurement and Contracting with Vendors — No Preference Based on Vendor's Social, <br />Political, or Ideological Interests <br />Beginning July 1, 2023, certain state and local government entities, and educational institutions, <br />are prohibited from giving preference to a vendor based on the vendor's social, political, or <br />ideological interests when procuring or contracting with them. Such entities may not request <br />documentation relating to a vendor's social, political, or ideological interests, and any <br />solicitation for purchases or leases must notify vendors of these provisions. <br />If approved by the Governor, or allowed to become law without the Governor's signature, these <br />provisions take effect July 1, 2023. <br />Vote: Senate 28-12; House 80-31 <br />This summary is provided for information only and does not represent the opinion of any Senator, Senate Officer, or Senate Office. <br />CS/CS/HB 3 Page: 4 <br />58 <br />