Protect America’s Lands Act

Bill Number

H.R. 1309

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Finance and Financial Sector

Status

Introduced

Latest Action

2025-02-13: Referred to the House Committee on Financial Services.

Last Updated

2025-04-11T08:06:22Z

AI-Generated Summary

Purpose

The "Protect America's Lands Act" (H.R. 1309) aims to prevent the trading of securities issued by companies focused on managing natural lands for ecological benefits, such as conservation or sustainable use, on national stock exchanges. This is intended to limit the financialization of natural assets like forests or ecosystems through public markets.

Key Provisions

• Prohibition on Transactions: National securities exchanges (registered platforms like the New York Stock Exchange) are barred from facilitating any trades in securities (e.g., stocks or bonds) issued by "natural asset companies."
• Definition of Natural Asset Company:
• A company that owns rights to the ecological performance (value from natural features like clean water or biodiversity) of a specific land area.
• It must have authority to manage the land for conservation, restoration, or sustainable practices.
• The main goal is either to enhance natural assets and ecosystem services (benefits like carbon storage or habitat protection) or to conduct activities that avoid harming these assets and restore used resources.
• This definition also covers parent companies, subsidiaries, or affiliates under common control.
• The bill amends Section 6 of the Securities Exchange Act of 1934, which governs how exchanges operate.

Significant Changes to Existing Law

• Adds a new subsection (m) to Section 6 of the Securities Exchange Act of 1934 (15 U.S.C. 78f), introducing the first explicit ban on listing or trading securities from a specific type of company based on its business model.
• Previously, the Act allowed exchanges to list securities from various companies as long as they met general listing standards; this creates a targeted exclusion for natural asset-focused entities without altering broader exchange rules.

Potential Impacts

• On Government Agencies: The Securities and Exchange Commission (SEC), which oversees exchanges, may need to enforce this prohibition, potentially requiring new guidance or monitoring to identify affected companies. No direct impact on other agencies like environmental regulators.
• On Citizens: Investors, including everyday shareholders, lose access to trading opportunities in natural asset companies on major exchanges, which could limit investment options in conservation-focused ventures. Landowners or communities near managed areas might see indirect effects if such companies face funding challenges.
• On International Relations: Minimal direct impact, though it could influence global perceptions of U.S. policies on environmental finance, potentially discouraging foreign investment in U.S.-based natural asset projects.

Main Stakeholders Affected

• Natural Asset Companies: Directly restricted from accessing public markets, which may hinder their ability to raise capital for land management projects.
• Securities Exchanges and Brokers: Must comply with the ban, facing potential compliance costs or legal risks for inadvertent violations.
• Investors and Financial Institutions: Impacted by reduced market access to these securities, affecting portfolios focused on sustainable or environmental investments.
• Environmental and Conservation Groups: Could face challenges in funding models that rely on public securities, though private funding options remain available.
• Landowners and Resource Users: Potentially affected if natural asset companies play a role in managing public or private lands for ecological purposes.

Notable Legal, Constitutional, or Political Implications

• Legal: Strengthens securities regulation by carving out an exception based on business purpose, which could lead to court challenges over whether the definition of "natural asset company" is overly vague or discriminatory under equal protection principles. It does not require SEC rulemaking but relies on existing enforcement mechanisms.
• Constitutional: No overt conflicts with the Constitution, as Congress has broad authority under the Commerce Clause to regulate securities markets; however, it might raise free speech or property rights concerns if viewed as limiting commercial speech about environmental management.
• Political: Reflects congressional intent to prioritize traditional land use (e.g., agriculture or energy) over emerging ecological finance models, potentially sparking debate on balancing environmental protection with economic freedoms. Introduced by a bipartisan group of House members, it signals targeted opposition to specific SEC proposals on natural asset listings.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Green, Mark E. [R-TN-7]

Cosponsors (22)

Rep. Hageman, Harriet M. [R-WY-At Large], Rep. Burchett, Tim [R-TN-2], Rep. Ogles, Andrew [R-TN-5], Rep. Miller, Mary E. [R-IL-15], Rep. Estes, Ron [R-KS-4], Rep. Norman, Ralph [R-SC-5], Rep. Newhouse, Dan [R-WA-4], Rep. Moolenaar, John R. [R-MI-2], Rep. Higgins, Clay [R-LA-3], Rep. Zinke, Ryan K. [R-MT-1], Rep. Guest, Michael [R-MS-3], Rep. Crane, Elijah [R-AZ-2], Rep. Bentz, Cliff [R-OR-2], Rep. Cline, Ben [R-VA-6], Rep. Downing, Troy [R-MT-2], Rep. Weber, Randy K. Sr. [R-TX-14], Rep. Maloy, Celeste [R-UT-2], Rep. Collins, Mike [R-GA-10], Rep. Van Drew, Jefferson [R-NJ-2], Rep. Mann, Tracey [R-KS-1], Rep. Tiffany, Thomas P. [R-WI-7], Rep. Fulcher, Russ [R-ID-1]

Recent Actions

• 2025-02-13: Referred to the House Committee on Financial Services.
• 2025-02-13: Introduced in House
• 2025-02-13: Introduced in House

Bill Versions

• Protect America’s Lands Act — issued 2025-02-13 — PDF (3 pages)