Respecting Corporate Contracts: State-By-State Risk Index, Fourth Edition

By May 2, 2024 May 7th, 2024 No Comments

This Fourth Edition of the State-by-State Risk Index serves as a guide for companies concerned about execution secrecy laws and the implications for commercial enterprises and public health.

The Index contains individualized risk profiles for every state in the United States, the District of Columbia, and the federal government and assigns a risk evaluation (“high,” “medium,” or “low”) based on legislation, policies, and practices in this area.

Companies looking to expand their businesses in the US are advised to consult the risk profiles in this Index before investing. Companies should engage with officials in medium and high risk states to request confirmation that their contractual rights and corporate interests will be respected, and that public and patient health will be protected.

In the six years since this Index was first published in July 2018, there have been significant developments in the secrecy law landscape. 2020, for example, saw the first-ever legislative repeal of a secrecy law in Virginia before the death penalty was abolished there in 2021.

In 2023 and early 2024, harmful legislation was passed expanding execution secrecy in Louisiana, South Carolina and Utah. This new legislation creates a significant burden for companies seeking to effectively monitor the supply chain for restricted medicines. As a result, Louisiana, South Carolina and Utah have changed from medium to high risk.