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Arkansas General Assembly· SB 409Notification that SB409 is now Act 406

An act TO PROHIBIT DISCRIMINATION OF AGRICULTURAL 16 PRODUCERS BY FINANCIAL SERVICES PROVIDERS, the official text

Shown verbatim: the complete text as captured from the official PDF posted by the Arkansas General Assembly, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
Stricken language would be deleted from and underlined language would be added to present law.

1 State of Arkansas              A Bill
2 95th General Assembly

3 Regular Session, 2025                                            SENATE BILL 409

4

5 By: Senators B. Johnson, Hill

6 By: Representatives Torres, Achor, Andrews, Barker, Beaty Jr., Beck, Bentley, S. Berry, Breaux, Brooks,

7 K. Brown, M. Brown, N. Burkes, R. Burkes, Joey Carr, John Carr, Cavenaugh, Childress, C. Cooper,

8 Cozart, Crawford, Eaton, Evans, Furman, Gazaway, Gramlich, Hall, Hawk, Hollowell, L. Johnson, Long,

9 Lundstrum, Lynch, Maddox, McAlindon, McClure, M. McElroy, McGrew, B. McKenzie, McNair,

10 Milligan, J. Moore, Nazarenko, Painter, Pearce, Perry, Pilkington, Puryear, Ray, R. Scott Richardson,

11 Richmond, Rose, Rye, Schulz, M. Shepherd, Steimel, Tosh, Underwood, Unger, Vaught, Walker, Wing,

12 Wooten

13

14                               For An Act To Be Entitled

15         AN ACT TO PROHIBIT DISCRIMINATION OF AGRICULTURAL

16         PRODUCERS BY FINANCIAL SERVICES PROVIDERS; TO AMEND

17         THE LAW CONCERNING ENVIRONMENTAL, SOCIAL JUSTICE, OR

18         GOVERNANCE SCORES OR METRICS; TO ESTABLISH THE FARMER

19         PROTECTION ACT; AND FOR OTHER PURPOSES.

20

21

22                               Subtitle

23                       TO PROHIBIT DISCRIMINATION OF

24                       AGRICULTURAL PRODUCERS BY FINANCIAL

25                       SERVICES PROVIDERS; AND TO ESTABLISH THE

26                       FARMER PROTECTION ACT.

27

28 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:

29

30         SECTION 1. Arkansas Code � 25-1-1001(4), concerning the definition of

31 "discriminate" used for environmental, social justice, or governance scores

32 or metrics, is amended to read as follows:

33         (4)(A) "Discriminate" means a company's:

34                               (i) Refusal to engage in the trade of any goods or

35 services with an entity based solely on its status as an energy, fossil fuel,

36 firearms, or ammunition industry entity, or agricultural producer; or

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1                    (ii) Termination of an existing business

2 relationship with an entity based solely on the entity's status as an energy,

3 fossil fuel, firearms, or ammunition industry entity, or agricultural

4 producer.

5                    (B) "Discriminate" does not include actions by an

6 investment adviser according to the investment-related guidelines, policies,

7 or preferences of its the investment adviser's clients;

8

9   SECTION 2. Arkansas Code � 25-1-1001, concerning definitions used for

10 environmental, social justice, or governance scores or metrics, is amended to

11 add an additional subdivision to read as follows:

12           (14)(A) "Agricultural producer" means a natural person or

13 company engaged in the production of goods derived from plants or animals.

14                   (B) "Agricultural producer" includes without limitation:

15                   (i) The growing of crops;

16                   (ii) Animal husbandry; and

17                   (iii) The production of livestock or dairy products.

18

19  SECTION 3. Arkansas Code � 25-1-1002 is amended to read as follows:

20  25-1-1002. List of financial services providers.

21  (a) The Treasurer of State shall maintain a list of financial services

22 providers as determined by the ESG Oversight Committee under � 25-1-1006 on

23 the Treasurer of State's website.

24  (b) The Treasurer of State shall post the list of financial services

25 providers that discriminate against energy companies, or firearms entities,

26 or agricultural producers or otherwise refuse to deal based on environmental,

27 social justice, and other governance-related factors on the Treasurer of

28 State's website.

29  (c)(1) Forty-five (45) days before including a financial services

30 provider on a list under � 25-1-1006, the ESG Oversight Committee shall send

31 a written notice to the financial services provider.

32           (2) The written notice under subdivision (c)(1) of this section

33 shall include the following information:

34                   (A) A determination by the ESG Oversight Committee under �

35 25-1-1006 that the financial services provider has discriminated against

36 energy companies, or firearms entities, or agricultural producers or

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1 otherwise refused to deal based on environmental, social justice, and other

2 governance-related factors;

3                    (B) Identification of the evidence of discrimination

4 relied on by the ESG Oversight Committee, in making the determination;

5                    (C) Placement of the financial services provider on a list

6 in forty-five (45) days unless, within thirty (30) days following the receipt

7 of the written notice, the financial services provider demonstrates that it

8 is not discriminating against energy companies, or firearms entities, or

9 agricultural producers or otherwise refusing to deal based on environmental,

10 social justice, and other governance-related factors; and

11                   (D) Publication of the list will be on the Treasurer of

12 State's website.

13  (d)(1) If the ESG Oversight Committee provides written notice to a

14 financial services provider under subdivision (c)(1) of this section based on

15 information from an energy, fossil fuel, firearms, or ammunition company, or

16 agricultural producer, then the energy, fossil fuel, firearms, or ammunition

17 company, or agricultural producer shall be required to consent to the

18 disclosure of any financial information held by the financial services

19 provider of the energy, fossil fuel, firearms, or ammunition company, or

20 agricultural producer to the ESG Oversight Committee, whether or not the

21 information is confidential or proprietary, to allow the financial services

22 provider to demonstrate that the financial services provider is not

23 discriminating against energy, fossil fuel, firearms, or ammunition

24 companies, or agricultural producers or otherwise refusing to deal with

25 energy, fossil fuel, firearms, or ammunition companies, or agricultural

26 producers based on environmental, social justice, and other governance-

27 related factors.

28  (2) If the energy, fossil fuel, firearms, or ammunition company,

29 or agricultural producer refuses to consent to the disclosure of financial

30 information under subdivision (d)(1) of this section, then the:

31                   (A) ESG Oversight Committee shall withdraw the written

32 notice to the financial services provider under subdivision (c)(1) of this

33 section; and

34                   (B) Financial services provider shall not be on the list

35 under subsection (a) of this section.

36

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