NC South Carolina Times

On Thursday, the U.S. House of Representatives passed the Prioritizing Economic Growth Over Woke Policies Act by a vote of 215 to 203. This legislative package includes the Businesses Over Activists Act, introduced by Rep. Ralph Norman (SC-05).

The Businesses Over Activists Act aims to limit the Securities and Exchange Commission's (SEC) influence over corporate speech on politicized issues within shareholder proposal processes. It seeks to refocus corporations on financial performance rather than political agendas.

According to the Exchange Act, while the SEC has limited oversight over proxy solicitations, it was never granted authority by Congress to mandate inclusion of shareholder proposals in corporate proxy statements. The current situation allows for numerous politically charged proposals that can cost companies significant amounts, potentially exceeding $100,000 per proposal.

The legislation is designed to reaffirm the SEC's role and prevent it from compelling companies to include unwanted shareholder proposals.

Speaker Mike Johnson expressed support for the act, stating: "Hardworking Americans continue to suffer the most from the woke Democrat agenda. They are sacrificing economic progress and prosperity at the altar of diversity, equity, and inclusion - and the effects are disastrous." He commended Rep. Norman for his leadership in removing these restrictions.

Rep. Ralph Norman also criticized current policies: "The Biden-Harris Administration's focus on costly non-material environmental, social, and political issues at the expense of sound financial regulation has troubling consequences." He emphasized protecting First Amendment rights for companies against government-mandated politically charged proposals.