Oregon Democratic State Senator Jeff Golden of Ashland is confused.

Golden is the chief sponsor of a bill, SB 681, that would prohibit the State Treasurer from renewing investments in or making new investments in a private market fund if the managers of the fund have stated an intention to invest in fossil fuels. Joining him as regular sponsors of the bill are seven other Democrats: Senators Lew Frederick, Khanh Pham, Kathleen Taylor; House members Zach Hudson, Lisa Fragala, Mark Gamba, Travis Nelson.

The bill simply makes no sense. 

In relying on environmental criteria, investing is driven by a political agenda, not the best interests of investors.

In addition, the State Treasurer invests in securities that trade in secondary markets. As the Hewlett Foundation’s Kelly Born and Stanford Law professor emeritus Paul Brest have argued, it is virtually impossible for a socially motivated investor to increase the beneficial outputs of a publicly traded corporation by purchasing, or not purchasing, its stock.

Golden’s bill also undermines logic right off the bat when it justifies itself by citing everything but the kitchen sink as justification for the restrictive policy: 

“Whereas in Oregon, more intense forest fires threaten rural communities and disrupt outdoor recreational opportunities and the tourism industry; smoke from these fires threatens our workforce, our elders and our children; severe droughts constrain our important agricultural and nursery industries and imperil our salmon runs; and businesses are forced to spend millions to mitigate the most pressing climate effects rather than investing in future innovation and opportunities.”

Good grief. 

Then, while it prohibits fossil fuel investments on the one hand; on the other hand it cites the requirement that the State Treasurer is required to manage investment portfolios “so as to maximize investment returns and minimize the risk of loss.” You can’t do both at the same time. 

It also ignores the responsibility of the State Treasurer not to do anything that abrogates the treasurer’s fiduciary responsibilities to make available funds “as productive as possible” and “to diversify the investments of the investment funds”.

The Democrats’ bill is just leftist activism parading as socially responsible investing.

Stop it in its tracks.