H.R.1309 - Protect America’s Lands Act (119th Congress)
Summary
H.R. 1309, the "Protect America's Lands Act," aims to amend the Securities Exchange Act of 1934. The amendment would prohibit national securities exchanges from effecting transactions in securities issued by "natural asset companies." These companies are defined as those holding rights to the ecological performance of land areas and managing them for conservation, restoration, or sustainable management.
The bill seeks to prevent the trading of securities tied to the ecological value of land. It targets companies whose primary purpose involves managing or restoring natural assets and ecosystem services.
The bill was introduced in the House of Representatives on February 13, 2025, and referred to the Committee on Financial Services.
Expected Effects
If enacted, H.R. 1309 would prevent the creation and trading of financial instruments based on the ecological value of natural assets. This could impact investment strategies related to conservation and sustainable land management.
The bill could limit the financialization of natural resources. It may affect companies and investors involved in ecosystem service markets.
The intended effect is to protect American lands by preventing their value from being tied to securities exchanges.
Potential Benefits
- Protection of Natural Resources: Prevents potential exploitation of natural assets driven by financial markets.
- Focus on Conservation: Encourages direct conservation efforts rather than financial speculation.
- Reduced Financial Risk: Limits the risk of financial instability linked to natural asset values.
- Preservation of Ecosystem Services: Supports the sustainable management of land for ecological benefits.
- Discourages Unsustainable Practices: May deter activities that prioritize short-term financial gains over long-term environmental health.
Most Benefited Areas:
Potential Disadvantages
- Reduced Investment in Conservation: May limit funding avenues for conservation projects that could benefit from private investment.
- Limited Market-Based Solutions: Restricts the use of market mechanisms to promote environmental stewardship.
- Potential Economic Impact: Could negatively impact companies focused on sustainable land management and ecosystem services.
- Reduced Innovation: May stifle innovation in financial instruments designed to support conservation efforts.
- Complexity of Enforcement: Defining and regulating "natural asset companies" could prove challenging.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's alignment with the US Constitution is primarily related to Congress's power to regulate commerce (Article I, Section 8, Clause 3). The regulation of securities exchanges falls under this power. The bill does not appear to infringe upon any specific constitutional rights or freedoms.
However, some might argue that restricting investment in conservation could indirectly affect property rights or the government's ability to promote the general welfare. These arguments would likely be indirect and less compelling.
Overall, the bill seems to operate within the bounds of Congress's enumerated powers.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).