OKLAHOMA CITY – An Oklahoma County judge has put on hold a law that would prohibit the state from doing business with banks deemed hostile to fossil fuel energy companies.
Don Keenan, former president of the Oklahoma Public Employees Association, said last year that the Oklahoma Energy Desegregation Act of 2022, House Bill 2034, would force state pension systems to fire certain fund managers at the expense of retirees. A lawsuit was filed, arguing that the law was unconstitutional.
Oklahoma County District Court Judge Sheila D. Stinson on Tuesday issued a temporary restraining order barring enforcement.
This law took effect on November 1, 2022.
The law directs the Oklahoma State Treasurer to create a list of financial companies that boycott energy companies. State Treasurer Todd Russ is the defendant.
“The court finds that this stated purpose of countering a ‘political agenda’ is likely to be contrary to the constitutionally stated purpose of the retirement plan,” the order states. “Any attempt by the treasurer or board to sell or transfer funds for any purpose other than for the benefit of members or beneficiaries is contrary to and violates the Oklahoma Constitution.”
The court ruled that the law contains five separate provisions that contain contradictory or ambiguous language regarding exceptions and exemptions.
“With regard to irreparable harm, the court finds that the sale or transfer of assets and investments may affect the financial health of the investment account,” the order states.
If the OPERS Board reviews its decision and follows the Secretary of the Treasury’s interpretation, the value of the system’s assets could increase or decrease and the stability of the investment funds could materially change before a final decision is made by the court. , the judgment said.
The order said the plaintiffs feared irreparable harm would occur if the law were to go into effect.
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