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Salesforce CEO Marc Benioff to Georgia governor: If you don't veto that bill, we will 'reduce investments' in the state

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Salesforce.com CEO Marc Benioff
Salesforce CEO Marc Benioff.  Kevork Djansezian/Reuters

Late Wednesday night, the Georgia state legislature passed a contentious bill that critics say will let organizations discriminate against gay people.

The next question is whether Gov. Nathan Deal will sign it into law. And Salesforce CEO Marc Benioff has pledged to reduce the company's investments in the state if he does.

The bill would permit faith-based organizations to deny social, educational, and charitable services based on a "sincerely held religious belief" relating to marriage. Faith-based organizations would also be able to cite religious beliefs when making employment decisions.

The bill defines faith-based organizations as churches, religious schools, and mission groups. But critics fear the broad language of the bill could cover businesses, hospitals, adoption centers, and homeless shelters as well.

Thanks to the widespread attention on this bill, Deal isn't expected to sign or veto it immediately. He will have until May 3 to decide, Greg Bluestein at the Atlanta Journal-Constitution reports.

But first Deal will have to reckon with the displeasure of some 400 businesses that have joined Georgia Prospers, an organization urging the state to drop all antigay legislation and make Georgia "welcoming for all people."

One of the bill's most vocal opponents has been Benioff.

When word came that the bill passed the legislature on Wednesday, Benioff voiced his displeasure by tweeting, "One again Georgia is trying to pass laws that make it legal to discriminate. When will this insanity end?"

The company has since issued a statement that says in no uncertain terms, if Georgia passed the bill into law, Salesforce will "reduce investments" in the state, including moving one of its big tech conferences from Atlanta to another location.

A company representative sent us this statement (emphasis ours):

Salesforce is calling on Governor Deal to veto HB 757 because the legislation creates an environment of discrimination and makes the state of Georgia seem unwelcoming to same-sex couples and the LGBTQ community.

We were encouraged by Governor Deal's recent comments that he would veto any bill that allows the perception of discrimination and we are now calling on him to stand by his comments and move quickly to veto HB 757.

If HB 757 is not vetoed and instead becomes law, Salesforce will have to reduce investments in Georgia, including moving the Salesforce Connections conference to a state that provides a more welcoming environment for the LGBTQ community."

Benioff has been on a warpath over the bill since late February. That's when he initially threatened that if Georgia passes the bill, Salesforce will take business out of the state. He told analysts during Salesforce's quarterly earnings call:

"We're looking squarely at what's going on in Georgia with House Bill 757, which means that we may have to reduce our investments in the state of Georgia based on what we're seeing with the state government there as well."

He has also been warning for weeks on his Twitter feed that Salesforce will move its big tech conference out of Atlanta if the bill is passed.

That conference is scheduled to happen in mid-May. Given that the governor may not decide on the bill until May 3, it's hard to see how Salesforce will have time to move or cancel this year's show.

In any case, Benioff has also urged Apple CEO Tim Cook, who is gay, to speak up. During an interview with CNBC's Jim Cramer, he said, "I think what Tim Cook should be doing is getting down right now to the state of Georgia and talking to those leaders about House Bill 757."

Like Indiana

Benioff tried and failed to get Indiana to drop a similar bill, but he did have luck pressuring Indiana to modify the law after it passed. Salesforce has huge operations in Indiana, and it threatened to take trade shows and other business elsewhere.

Indiana changed the language of its law to explicitly say it could not be used to justify discrimination.

That mollified Benioff enough, and he told Cramer that when it came to Georgia, "I hope that they see the light the way that the state of Indiana did."

In this case, at the last minute, the Georgia lawmakers added similar language to their bill before passing it after Deal told them he would not sign a bill that "allows discrimination in our state in order to protect people of faith," the Journal-Constitution reports.

The compromise sent to him included language saying this statute could not be used to allow "discrimination on any grounds prohibited by federal or state law."

But in this case, Benioff and Salesforce are taking a firmer stance. The company wants the bill vetoed.

Other business leaders openly opposing the bill include Dell's Michael Dell, Virgin Group's Richard Branson, and Microsoft's Brad Smith.

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Julie Bort was Business Insider's Editor at Large for the Tech team. She loves investigating stories and shedding light on the tech industry's most amazing people.Here's a small sample of some of Julie's work.Former Pinterest employees describe a traumatic workplace where managers humiliate employees until they cry, Black people feel alienated, and the toxic culture 'eats away at your soul'Sex, tequila, and a tiger: Employees inside Adam Neumann's WeWork talk about the nonstop party to attain a $100 billion dream and the messy reality that tanked itInsiders say WeWork's IT is a patchwork of cheap devices and Band-Aid fixes that will take millions to fixWeWork's toxic phone booths were created in-house by its Powered by We business70-hour weeks and 'WTF' emails: 42 employees reveal the frenzy of working at Tesla under the 'cult' of Elon MuskElon Musk works so many hours at Tesla, employees are constantly finding him asleep under tables and desksHow this woman went from a Pizza Hut employee to a founder of a $4 billion startupAn Oracle insider explains how some salespeople gamed the system to sell more cloudTHE TAKEDOWN OF TRAVIS KALANICK: The untold story of Uber's infighting, backstabbing, and multimillion-dollar exit packagesMicrosoft is in talks to buy GitHub, a startup at the center of the software world last valued at $2 billionThe alarming inside story of a failed Google acquisition, and an employee who was hospitalizedInside Facebook's plan to eat another $350 billion IT marketHow a registered sex offender wound up living in an Airbnb hosting unsuspecting guestsA controversial ex-banker is the person who really runs Twitter — and he's gambling the company's future on one risky betSecret passages and skipped meals: Oracle's CEO gave us a rare peek at what it really takes to run a $37 billion companyHP told some employees to choose between becoming contractors with no benefits or being fired without severance'I felt like we were being extorted': Customer says Oracle tried to strong-arm him into a cloud saleHow the queen of Silicon Valley is helping Google go after Amazon's most profitable businessAirbnb host: A guest is squatting in my condo and I can't get him to leaveLIES, BOOZE, AND BILLIONS: How one of the fastest-growing startups in Silicon Valley history raised $580 million then spiraled out of controlGitHub is undergoing a full-blown overhaul as execs and employees depart — and we have the full inside storyWhen she's not writing for Business Insider, Julie can usually be found on the trails, on my mountain bike, or on my skis, if you know where to look.