Legislation/Guidance in Effect
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Title |
Key Dates |
Nature of |
ESG Category |
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HB2100: Updating the version of risk-based capital instructions in effect |
Effective date |
Legislation |
Restrict Use of ESG Factors; Focus on Pecuniary Characteristics |
■ Requires any instrumentality of the state of Kansas, including the pooled money investment board, to ensure that bidders, offerors, contractors, or subcontractors are not given preferential treatment or discriminated against based solely on ESG criteria when engaged in procuring contracts for any purpose. |
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Prohibit Discrimination on Basis of Social Credit/ESG Scores |
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| New state Treasurer taking hard look at ESG, who manages state pension funds |
Introduced |
Treasurer Position | Restrict Use of ESG Factors; Focus on Pecuniary Characteristics |
■ Newly sworn-in Kansas State Treasurer Steven C. Johnson is taking a hard look at whether ESG (Environmental, Social, and Governance) policy influences pension fund investment — and who is managing the investments. Johnson said he is working closely with new Attorney General Kris Kobach’s office to write legislation to help the treasurer’s office address any ESG issues with Kansas funds. “One of the things that calls for is for the treasurer’s office to maintain a list of those (funds which) espouse ESG that we are using,” Johnson said. “And then, direct the pension boards to divest from those assets.” ■ Derek Kreifels, CEO of the State Financial Officers Foundation, — of which Johnson is a member — says ESG funds, by restricting access to capital, can make it very difficult for companies, or individuals, who don’t score high on “ESG ratings,” to do business. Kreifels said his organization has two model policies they suggest states use, one is to strengthen the “sole fiduciary” role. “Our argument from day one, when we started making noise about this nationally a year ago, is that any state investment fund, whether it’s a pension or short-term Treasury investment, or banking contract, or whatever it is, financially it should have one purpose when making an investment decision — and that’s the best return for the dollar for … the pensioner, or the taxpayer,” Kreifles said. “And that’s it, period. End of story. No other political issue should be used or leverage considered when making an investment decision.” |
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(Now Former) State Treasurer: No More Political Games with Kansas Pensions |
Introduced |
Treasurer Position |
Affirmatively Not Restricting ESG |
■ Then-State Treasurer Rogers wrote an opinion piece for the St. John News that articulates his view that while state pension investment professionals "should be held accountable" for their investment choices and processes and that he would "fight to preserve their freedom to use the best tools" to make investment decisions. |
Pending Legislation
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Title |
Key Dates |
Nature of |
ESG Category |
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Introduced |
Legislation |
Restrict Use of ESG Factors; Focus on Pecuniary Characteristics |
■ Authorizes the Joint Committee on Fiduciary Financial Institutions Oversight, the sponsors of this resolution, and the state treasurer, at the direction of the Kansas Legislature, to work with concerned parties to study the topic of ESG standards and draft legislation that restricts the use of ESG standards. Requires the Joint Committee to report findings, recommendations, and propose legislation to the legislature by January 8, 2024. |
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Target Entities that Boycott Certain Industries |
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Prohibit Discrimination on Basis of Social Credit/ESG Scores |
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Introduced |
Legislation |
Restrict Use of ESG Factors; Focus on Pecuniary Characteristics |
■ Authorizes the state treasurer to maintain and update a list of all financial companies and financial institutions that engage in ideological boycotts. Requires the board to notify the treasurer of the listed financial companies in which the system owns direct holdings or indirect holdings within 30 days after receiving the list and to provide written notice to the listed companies. |
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Target Entities that Boycott Certain Industries |
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Prohibit Discrimination on Basis of Social Credit/ESG Scores |
Past/Inactive Legislation
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Title |
Key Dates |
Nature of |
ESG Category |
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| HB2722: Enacting the second amendment financial privacy act, prohibiting financial institutions from using a firearms code to engage in certain discriminatory conduct and surveilling, reporting or tracking the purchase of firearms and ammunition, authorizing the attorney general to investigate and enforce violations of such act and providing a civil penalty for violations thereof. | Introduced, but did not pass in 2024 legislative session | Legislation | Target Entities that Boycott Certain Industries |
■ Prohibits financial institutions from requiring the usage of the firearms code in a way that distinguishes a firearms retailer physically located in the state of Kansas from general merchandise retailers or sporting good retailers in the state of Kansas. ■ Prohibits financial institutions from discriminating against firearms retailers by detailing a lawful payment card transaction based solely on the assignment or non-assignment of a firearms code to the merchant or transaction; limiting or declining to do business with a customer, potential customer, or merchant based on the assignment or non-assignment of a firearms code to previous lawful transactions involving such customer, potential customer, or merchant; charging a higher transaction or interchange fee to any merchant or for a lawful transaction based on the assignment or non-assignment of a firearms code; ■ Prohibits financial institutions from requiring the usage of the firearms code in a way that distinguishes a firearms retailer physically located in the state of Kansas from general merchandise retailers or sporting good retailers in the state of Kansas. ■ Prohibits financial institutions from disclosing a financial record, including a firearms code that was collected in violation of this act, except as otherwise required by law; ■ Requires the attorney general to investigate alleged violations of this act and upon finding a violation provide written notice to any individual or entity believed to be in violation of such act. |
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Introduced, but did not pass in 2022 legislative session |
Legislation |
Target Entities that Boycott Certain Industries |
■ Requiring the KPERS board to divest from investments with entities that boycott energy companies; to establish conditions and procedures for divestment; and to prohibit contracts without written verification that a company is not boycotting energy firms. |
