Maine

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■ In 2021, Maine enacted H.P. 65 - L.D. 99, An Act to Require the State to Divest Itself of Assets Invested in the Fossil Fuel Industry, which called for the Maine Public Employees Retirement System ("MainePERS") to completely divest from fossil fuel companies by January 2026.

■ MainePERS CEO Rebecca Wyke emphasized at a meeting with lawmakers that while progress toward divesting from fossil companies has been made, the complete elimination of such investments would conflict with MainePERS' fiduciary duties to its participants and beneficiaries. Other MainePERS officials said a fossil fuel free portfolio would be more expensive, and the best long-term strategy is to "broadly diversify the portfolio, without excluding certain sectors".

HP65 / LD 99: Limitation on Investment in Fossil Fuel Companies; Divestment

Effective date
6/16/2021

Adopted
6/16/2021

Introduced
1/11/2021

Legislation

Promote Divestment from Certain Industries

■ Applies to the Maine Public Employees' Retirement System.

■ Prohibits investment in the 200 largest publicly traded fossil fuel companies as determined by the amount of carbon in their reserves. Requires divestment from restricted companies by January 1, 2026.

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Introduced

■ Prohibits financial institutions and their agents from requiring the use of a firearms code in a way that distinguishes a firearms dealer located in Maine from a general merchandise or sporting goods retailer located in Maine.

■ Prohibits financial institutions from (i) declining payment card transactions based solely on the (non-)assignment of a firearms code to the merchant or transaction, (ii) limiting or declining to do business with a customer or merchant based on the (non-)assignment of a firearms code in a previous lawful transaction with the person, (iii) charging a merchant a higher transaction fee or interchange fee based on the (non-)assignment of a firearms code, or (iv) taking any other action against a customer or merchant intended to suppress lawful commerce involving firearms based on the customer's or merchant's business involving firearms.

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LD880: An Act Regarding Nondiscrimination in Financial Services

Introduced but failed to pass in the 2025 legislative session

Legislation

Restrict Use of ESG Factors; Focus on Pecuniary Characteristics

■ Requires a financial institution that uses standards or guidelines based on nonfinancial, nontraditional or subjective criteria, including ESG scores or DEI policies, to (i) disclose to the Department of Professional and Financial Regulation, Bureau of Financial Institutions ("BFI") the specific standards, guidelines and criteria it uses to determine access to or denial of financial services to persons in Maine, (ii) provide to a person denied financial services a disclosure with such standards, guidelines and criteria and an explanation of how the financial institution became aware of the information that led it to deny the service, and (iii) comply with the rules adopted by the BFI.

■ Penalties for violations include a $10,000 fine, and committing 5 or more violations is a Class D crime.

 Introduced, but did not pass in 2023 legislative session

■  Applies to the Maine Public Employees Retirement System.

LD1562: An Act to Protect the Retirement of State Employees and Teachers by Establishing Standards for Fiduciary Responsibility

Introduced, but did not pass in 2023 legislative session

Legislation

Restrict Use of ESG Factors; Focus on Pecuniary Characteristics

■ Establishes certain standards of care for fiduciaries of the Maine Public Employees' Retirement System and generally prohibits decision-making with regard to investments in the retirement system based on certain nonpecuniary factors such as environmental, social, corporate governance, ideological, or political factors.