Tennessee’s treasurer has ordered the state’s pension fund manager to sell stock in a marijuana company after learning about the investment.
Treasurer David Lillard said he was unaware of the investment until he was contacted by the Chicago Sun-Times.
The newspaper reported that more than a dozen public pension funds invested in marijuana through a California-based real estate investment trust (REIT).
The REIT, Innovative Industrial Properties, serves the marijuana industry and trades on the New York Stock Exchange as IIPR.
Tennessee Gov. Bill Lee, a Republican, has routinely opposed any move to legalize medical marijuana.
According to the Chattanooga Times Free Press, the Tennessee Consolidated Retirement System passively invested in Innovative Industrial Properties through a small-company stock index.
State Senate Finance chair Bo Watson, a Republican, said the investment is contradictory and confusing to the public.
Rep. Jeremy Faison, also a Republican, said the stock is on the rise and is questioning the decision to sell the shares.
Lillard said the state needs to review the process on purchasing indexes.
– Associated Press