TO AMEND THE LAW CONCERNING ENVIRONMENTAL, SOCIAL JUSTICE, OR GOVERNANCE SCORES; AND TO CLARIFY THE EXEMPTIONS FROM DIVESTMENT FOR CERTAIN INVESTMENTS.

HB 1507 (now Act 252) clarifies exemptions for state investments that would otherwise face divestment under Arkansas law. It specifies that investments locked into maturity dates with early withdrawal penalties causing financial harm to the state or public entities are exempt from divestment requirements. This amendment (Arkansas Code § 25-1-1007) ensures state fiduciary duties are met while avoiding unnecessary financial penalties. The bill directly affects state pension funds and public investment managers handling assets subject to divestment rules. It does not alter environmental or social justice standards but refines existing divestment procedures.