H1174: Urge Congress/Oppose New SEC Rule. Latest Version

Passed 1st Reading



H                                                                                                                                           Simple




Adopted 6/22/22


Sponsors: Representative McNeely. For a complete list of sponsors, refer to the North Carolina General Assembly web site. Referred to: Calendar 6/22/2022

June 20, 2022

A HOUSE RESOLUTION Urging Congress to oppose the securities AND exchange commission's proposed rule on the enhancement and standardization of climate‑related disclosures for investors as it relates to agriculture.

Whereas, the Securities and Exchange Commission (SEC) has proposed a rule on The Enhancement and Standardization of Climate‑related Disclosures for Investors, which includes a requirement that public companies disclose their Scope 3 greenhouse gas emissions. This requirement would become de facto regulation of all farms by the SEC and would require farms of all sizes to disclose a significant amount of information on climate‑related items that they very well may be currently unable to quantify; and

Whereas, this rule would impact the State's agriculture industry significantly; and

Whereas, agriculture contributes 92.9 billion dollars to our State's economy annually, making it the State's number one industry; and

Whereas, farmgate sales provide nearly a tenth of this total, with robust manufacturing, wholesale, and retail operations accounting for the remainder; and

Whereas, in North Carolina, 98% of farms are family owned and operated. Additionally, of the 46,000 farms in our State, nearly 80% have revenues of $50,000 or less. These farms are not corporations with sophisticated compliance departments with dedicated staffing resources like you would find in a publicly traded company, nor should they be treated as such. Imposing additional reporting requirements around climate‑related metrics would distract farms of all sizes from their focus on producing food, fiber, and fuel; and

Whereas, given the challenges currently facing the farm economy from inflation and increased expenses, this additional regulatory burden could cause family farms to cease operations; and

Whereas, with the strong potential for food shortages in the near future, now is not the time for the SEC to reach beyond its purview and take action that could further stress our nation's food insecurity for the most vulnerable members of our society; and

Whereas, the House of Representatives urges Congress to take action in opposing the SEC's new rule; Now, therefore,

Be it resolved by the House of Representatives:

SECTION 1.  The House of Representatives urges Congress to oppose the Securities and Exchange Commission's proposed rule that would require public companies to disclose their Scope 3 greenhouse gas emissions as this requirement would impact, and potentially harm, the State's agriculture industry.

SECTION 2.  The Principal Clerk shall transmit a copy of this resolution to the Securities and Exchange Commission.

SECTION 3.  This resolution is effective upon adoption.