Bill > HB1507

This bill amends Arkansas Code § 25-1-1007 to clarify exemptions from divestment for certain investments. Specifically, the bill expands language to allow investments that would normally be subject to divestment to remain in place if they are locked into a maturity date and early divestment would result in a financial penalty that could harm the state or a public entity. The key modification is the insertion of the phrases "or a public entity" and "or the public entity" to broaden the scope of the exemption beyond just state-level investments. The goal appears to be providing flexibility for investment managers to avoid financial penalties while still maintaining their fiduciary responsibilities, particularly in cases where mandated divestment might cause economic harm. The bill does not change the fundamental principle of the original law but rather widens its applicability to include investments held by public entities beyond the state government.

Government Affairs

https://arkleg.state.ar.us/Bills/Detail?id=hb1507&ddBienniumSession=2025%2F2025R