HB1307

House Bill 1307 amends the Uniform Prudent Management of Institutional Funds Act (2006) in Arkansas by placing restrictions on how certain government institutions, including state-supported colleges and universities, manage and invest institutional funds. The bill prohibits these institutions from considering specific social and political goals when selecting service providers, voting shares, or making investments. These restricted goals include environmental, social, and governance (ESG) factors, such as greenhouse gas emissions reductions, diversity and inclusion targets, access to abortion or gender-reassignment services, and restrictions on firearms. The bill requires institutions to prioritize financial performance over these criteria, though exceptions are permitted if the institution determines that strictly following these rules would have a 'materially negative financial impact.' If an exception is utilized, the institution must follow rigorous documentation and public notice requirements, including demonstrating that they attempted to find alternative providers. The bill includes a grandfather clause for special gifts with donor intentions expressed prior to January 1, 2024, that conflict with these new requirements.