Ark. Code § 25-1-1001

Current with legislation from 2024 Fiscal and Special Sessions.

Section 25-1-1001 - Definitions

As used in this subchapter:

(1) "Ammunition" means a loaded cartridge case, primer, bullet, or propellant powder with or without a projectile;

(2) "Company" means a for-profit sole proprietorship, organization, association, corporation, partnership, joint venture, limited partnership, limited liability partnership, or limited liability company, including a wholly owned subsidiary, majority-owned subsidiary, parent company, or affiliate of those entities or business associations, that exists to make a profit;

(3) "Direct holdings" means, with respect to a financial company, all securities of that financial company held directly by a state governmental entity in an account or fund in which a state governmental entity owns all shares or interests;

(4)

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

(i) Refusal to engage in the trade of any goods or services with an entity based solely on its status as an energy, fossil fuel, firearms, or ammunition industry entity; or

(ii) Termination of an existing business relationship with an entity based solely on the entity's status as an energy, fossil fuel, firearms, or ammunition industry entity.

(B) "Discriminate" does not include actions by an investment adviser according to the investment-related guidelines, policies, or preferences of its clients;

(5)

(A) "Discriminate against a firearm entity" means, without ordinary business purpose, refusing to deal with, terminating business activities with, or otherwise taking any action that is intended to penalize, inflict economic harm on, or limit commercial relations with a company because the company engages in the production, sale, or manufacturing of firearms or ammunition.

(B) "Discriminate against a firearm entity" does not include:

(i) The established policies of a merchant, retail seller, or platform that restrict or prohibit the listing or selling of ammunition, firearms, or firearm accessories;

(ii) Actions by an investment adviser according to the investment-related guidelines, policies, or preferences of its clients; or

(iii) A company's refusal to engage in the trade of any goods or services, decision to refrain from continuing an existing business relationship, or decision to terminate an existing business relationship:

(a) To comply with federal, state, or local law, policy, or regulations or a directive by a regulatory agency; or

(b) For any traditional business reason that is specific to the customer or potential customer and not based solely on an entity's status as a firearm entity;

(6)

(A) "Discriminates against energy companies" means, without ordinary business purpose, refusing to deal with, terminating business activities with, or otherwise taking any action that is intended to penalize, inflict economic harm on, or limit commercial relations with a company because the company:

(i) Engages in the exploration, production, utilization, transportation, sale, or manufacturing of fossil fuel-based energy and does not commit or pledge to meet environmental standards beyond applicable federal and state law; or

(ii) Does business with a company described by subdivision (6)(A)(i) of this section.

(B) "Discriminates against energy companies" does not include actions by an investment adviser in accordance with the investment-related guidelines, policies, or preferences of its clients;

(7) "Environmental, social justice, and other governance-related factors" means any nonpecuniary factors that a financial services provider uses to evaluate a company's policies including without limitation:

(A) Environmental impact; and

(B) Diversity and inclusion policies;

(8)

(A) "Financial services provider" means an entity regulated by the State Bank Department, State Securities Department, or a similar federal regulatory agency, engaged in or transacting business in this state, including without limitation:

(i) A state or national bank or trust company;

(ii) A state or federal savings and loan association;

(iii) A state or federal credit union;

(iv) A building and loan association;

(v) A mortgage banker, mortgage broker, loan officer, or mortgage servicer under the Fair Mortgage Lending Act, § 23-39-501 et seq.; or

(vi) An entity that provides money services under the Uniform Money Services Act, § 23-55-101 et seq.

(B) "Financial services provider" includes any other entity that:

(i) Holds and receives deposits, savings, and share accounts;

(ii) Issues certificates of deposit; or

(iii) Provides to its customers any deposit accounts in which the funds are subject to withdrawal by check, instrument, order, or electronic means to make third-party payments, including the provision of financial technology services;

(9) "Firearm" means a weapon that expels a projectile by the action of explosive or expanding gases;

(10) "Firearm entity" means:

(A) A firearm, firearm accessory, or ammunition manufacturer, distributor, wholesaler, supplier, or retailer; or

(B) A corporation, unincorporated association, federation, business league, or business organization that:

(i) Is not organized or operated for profit and for which none of its net earnings inures to the benefit of any private shareholder or individual;

(ii) Has two (2) or more firearm entities, as described under subdivision (10)(A) of this section, as members; and

(iii) Is exempt from federal income tax under Section 501(a) of the Internal Revenue Code as an organization described by Section 501(c) of the Internal Revenue Code;

(11)

(A) "Indirect holdings" means, with respect to a financial services provider, all securities of the financial services provider held in an account or fund, including a mutual fund, managed by one (1) or more persons not employed by a state governmental entity, in which the state governmental entity owns shares or interests together with other investors not subject to this subchapter.

(B) "Indirect holdings" does not include any money invested under a plan described by Sections 401(a), 401(k), 403(b), or 457 of the Internal Revenue Code of 1986, as it existed on January 1, 2023;

(12) "Public entity" means a state or local government entity, including a:

(A) Department, division, agency, office, commission, board, or other government organization;

(B) Political subdivision, including a city, county, municipality, town, or conservation district; and

(C) Public school, school district, charter school, or public institution of higher education; and

(13)

(A) "Refuse to deal" means the practice of refusing or denying any interaction with a person.

(B) "Refuse to deal" does not include actions by an investment adviser according to the investment-related guidelines, policies, or preferences of its clients.

Ark. Code § 25-1-1001

Added by Act 2023, No. 411,§ 1, eff. 8/1/2023.