Rep. Jeff Wardlaw asks questions in a committee meeting, February 2023 Brian Chilson

Arkansas lawmakers are willing to potentially forfeit millions from state employee retirement accounts if that’s the cost of owning the libs.

A bill that locks in new regulations for investments by state entities cleared the House Monday after lawmakers concurred in two amendments from the Senate side, the final steps required before House Bill 1307 could go to the governor’s desk for a signature.

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HB1307 protects poor, defenseless oil and firearms industries from woke investors who might want to put their money into companies that don’t profit off of death and environmental destruction. Arkansas will now join a handful of other red states to limit business with banks that consider ESG — environmental, social and governance — factors when making investment decisions.

Sponsored by Rep. Jeff Wardlaw (R-Hermitage) and Sen. Ricky Hill (R-Cabot), the bill is based on a model from the American Legislative Exchange Council, a national right-wing group that writes up bills friendly to big corporations and then has state lawmakers carry their water. It’s also part of an increasingly activist turn for right-wing state treasurers, including Treasurer Mark Lowery, who are part of a group called the State Financial Officers Foundation, which is trying to fight climate action with the might of the state. Our right to destroy the planet shall not be infringed!

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House members initially voted down the two amendments needed to move HB1307 to the governor’s desk, after Republicans Les Warren of Hot Springs and Julie Mayberry of Hensley said that making this ideological stand would endanger the investment funds that bankroll the golden years of firefighters, teachers, law enforcement and other state employees.

“We should be protecting these systems and retirees, which is a lot more important than making a political statement, which is what this bill and these amendments do,” Warren said.

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Other states that have passed similar laws against ESG investments for state entities exempted retirement funds, Warren said. But sponsors of Arkansas’s version were not willing to do that.

The state stands to lose tens of millions of dollars, Mayberry said.

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Wardlaw downplayed any financial costs to state retirement accounts, and said his bill would protect the oil and firearms industries from discrimination with “minimal impact.”

“We’re gonna stand up for the gun manufacturers who have recently moved into the state. We need to stand up for those folks and protect Arkansas jobs,” he said.

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And Rep. Howard Beaty (R-Crossett) pushed back against Warren’s and Mayberry’s objections, saying brokers are the ones who made a political statement first when they said they didn’t want to invest in guns and oil. It’s appropriate for the state of Arkansas to make a similar political statement, Beaty said.

The first amendment failed at 2:19 p.m., with 50 yeahs, 30 nays, 15 not voting and five voting present. No Democrats voted for it. You can see who voted for and against here.

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The second amendment needed to get this bill to the governor’s desk failed one minute later, with a similar vote count.

Strangely, at 4:04 p.m., Rep. Kendra Moore (R-Lincoln) made a motion to reconsider the amendments. Although only an hour and 45 minutes had passed and there was no discussion or debate this time, the vote tallies were wildly different. The amendments passed this time with 67 and 70 yes votes. Fred Allen of Little Rock is the only Democrat to vote yes. Mayberry stuck to her guns and voted no on the amendments. Warren did not vote on either amendment their second time around.

What happened during the course of the Arkansas House afternoon session to change all those votes is a mystery. The result is not. When Gov. Sarah Sanders signs this ALEC-sponsored bill into law, the state of Arkansas will willingly lose money that should be in state employees’ retirement funds. Balances will be eaten into to pay additional transaction fees and higher interest rates that will come with the changes required by HB1307.

Gun and oil industry profits will be safe, though, because Arkansas lawmakers voted to prioritize right-wing ideology over financial common sense.

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