AR SB41

Creates new Arkansas Code Title 25, Chapter 1, Subchapter 10 to regulate environmental, social justice, and governance (ESG) scores and metrics used by financial services providers.

Authorizes the State Treasurer, in consultation with the Attorney General, to divest state stocks, securities, and obligations from investment managers that discriminate without reasonable business purpose against energy, fossil fuel, firearms, or ammunition industries.

Requires the State Treasurer to maintain and publish a list of financial services providers that discriminate based on ESG factors, with 45-day notice period and 30-day opportunity for providers to cure before listing.

Mandates public entities divest cash funds from listed financial services providers within 60 days and prohibits private lawsuits against providers or investment managers for divestment actions taken under this law.

Defines "reasonable business purpose" as purposes directly related to financial stability, risk mitigation, legal/regulatory compliance, or limiting liability; specifies that investment evaluations must be based on pecuniary factors only.