Divestiture bill hangs up in panel

Legislation that would authorize the state treasurer to divest certain state investments because of the use of environmental, social justice or governance, or ESG, metrics stalled Tuesday in the Senate State Agencies and Governmental Affairs Committee.

At the direction of the attorney general, the state treasurer would be required under House Bill 1307 by Rep. Jeff Wardlaw, R- Hermitage, to prepare, maintain and provide to each state governmental entity a list of financial service providers that discriminate against energy companies or firearms entities or otherwise refuse to deal based on environmental, social justice and other governance- related factors, or ESG factors. The bill would exempt indirect holdings of the state’s retirement systems.

Sen. John Payton, R-Wilburn, said he loves Attorney General Tim Griffin and state Treasurer Mark Lowery, but the bill needs more work.

“I am just saying I don’t think that something as big as this should be in the hands of only one or two people, and I don’t like the idea that you put one constitutional office at the direction of another constitutional office,” he said.

Payton said he would prefer these decisions be put in the hands of five people.

Sen. Ricky Hill, R-Cabot, the Senate sponsor of HB1307, said he would pull the bill down and work with Payton to develop his idea of putting the decisions in the hands of a five-member board.

Under the bill, the state treasurer would be required to divest the state of all direct or indirect holdings with a financial services provider included on the list published on the state treasurer’s website for retirement holdings and all other holdings within certain periods.