Nevada Treasurer Applauds Biden Veto Of ‘Anti-Free Market' Bill

By Jeniffer Solis, Nevada Current

March 21, 2023

Nevada State Treasurer Zack Conine praised President Biden’s first veto for a bill that would have repealed a rule allowing asset managers to consider climate change, social and governance issues in their investment decisions.

“It’s unfortunate that extremists continue to support anti-competitive and anti-free market legislation at the expense of our retirees,” said Conine in a statement Monday. “I’m thankful to President Biden for his willingness to provide investment managers with the tools they need to mitigate potential risk in their portfolios.”

The Labor Department rule was created by executive order directing federal agencies to consider policies to protect against climate-related financial risk.

Republicans have ramped up their attacks on ESG investing — short-hand for environment, social and governance — in recent months, but the practice has only grown in popularity in the finance sphere, including in Nevada.

Last year, Conine announced he would divest from companies that manufacture or sell assault-style weapons, a move that saved the state “millions of dollars in investment losses,” according to the Treasurer’s Office.

Conine called the bill “fiscally irresponsible” and argued ESG risk factors are widely used by asset managers, including pension fund managers, to mitigate long-term portfolio risks and help increase investment returns.

Biden’s veto of this legislation will allow fiduciaries to continue using all data available to them to better manage pension funds for public servants, said Conine.

On Monday, Biden said he vetoed the legislation because “it would put at risk retirement savings of individuals across the country.”

The bill to strike down the rule passed 50-46 in the Senate earlier this month, with two Democrats — Joe Manchin of West Virginia and Jon Tester of Montana — joining Republicans. Another three Democrats were absent for the vote. The Republican-led House voted 216-204 to pass the bill.

Nevada Current, a nonprofit, online source of political news and commentary, documents the policies, institutions and systems that affect Nevadans’ daily lives. The Current is part of States Newsroom, a national 501(c)(3) nonprofit supported by grants and a coalition of donors and readers.