Vote Smart's Synopsis:

Vote to pass a bill that requires the state of Arkansas divest from financial companies that follow certain sociopolitical environmental, social, governance (ESG) obligations and guidelines.

Highlights:

• Defines “environmental, social-justice, and other governance-related factors” as any nonpecuniary factors that a financial services provider uses to evaluate a company’s policies, including (Sec. 1, Pg. 3):

• Environmental impanct; and

• Diversity and inclusion policies.

• Defines “financial services provider” as an entity regulated by the State Bank Department, State Securities Department, or a similar federal regulatory agency, engaged in or transacting business in this state, including (Sec. 1, Pg. 3):

• A state or national bank or trust company;

• A state or federal savings and loan association;

• A state or federal credit union;

• A building and loan association; and

• A mortgage banker, mortgage broker, loan officer, or mortgage servicer under the Fair Mortgage Lending Act.

• Establishes an ESG Oversight Committee composed of citizens appointed individually by the Governor, President of the Senate, Speaker of the House of Representatives, and Attorney General to determine which financial service providers discriminate against, energy, fossil fuel, firearms, or ammunition companies or otherwise refuse to deal based on environmental, social justice, and governance-related factors (Sec. 1, Pg. 8).

• Authorizes the governor authority to reinstate financial service providers who they believe have begun to, or ceased to discriminate against energy, fossil fuel, firearm, or ammunition companies that refuse to deal based on environmental, social justice, and other governance-related factors (Sec. 1, Pg. 9).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that requires the state of Arkansas divest from financial companies that follow certain sociopolitical environmental, social, governance (ESG) obligations and guidelines.

Highlights:

• Defines “environmental, social-justice, and other governance-related factors” as any nonpecuniary factors that a financial services provider uses to evaluate a company’s policies, including (Sec. 1, Pg. 3):

• Environmental impanct; and

• Diversity and inclusion policies.

• Defines “financial services provider” as an entity regulated by the State Bank Department, State Securities Department, or a similar federal regulatory agency, engaged in or transacting business in this state, including (Sec. 1, Pg. 3):

• A state or national bank or trust company;

• A state or federal savings and loan association;

• A state or federal credit union;

• A building and loan association; and

• A mortgage banker, mortgage broker, loan officer, or mortgage servicer under the Fair Mortgage Lending Act.

• Establishes an ESG Oversight Committee composed of citizens appointed individually by the Governor, President of the Senate, Speaker of the House of Representatives, and Attorney General to determine which financial service providers discriminate against, energy, fossil fuel, firearms, or ammunition companies or otherwise refuse to deal based on environmental, social justice, and governance-related factors (Sec. 1, Pg. 8).

• Authorizes the governor authority to reinstate financial service providers who they believe have begun to, or ceased to discriminate against energy, fossil fuel, firearm, or ammunition companies that refuse to deal based on environmental, social justice, and other governance-related factors (Sec. 1, Pg. 9).

Full Bill Text