HB1333--INVESTMENTSOFPUBLICRETIREMENTSYSTEMS
SPONSOR: Sparks
Thisbillmodifiesprovisionsrelatingtodutiesoffiduciariesfor
publicemployeeretirementsystems. Thisbillspecifiesthat,an
investmentfiduciaryshalldischargehisorherdutiesinthe
interestsoftheparticipantsinapublicemployeeretirement
systemandtheirbeneficiariesfortheexclusivepurposeof
providingfinancialbenefitsandpayingreasonableexpensesfor
administeringthepublicemployeeretirementsystem.Additionally,
whendischargingfiduciaryduties,whichshallbethesameasa
memberoftheboardoftrusteesofasystem,aninvestment
fiduciaryshalltakeintoaccountonlyfinancialfactors. Theterm
"financial"isdefinedinthebillasamaterialeffectonthe
financialriskorthefinancialreturnofaninvestment,butdoes
notincludeanyactiontaken,orfactorconsidered,byan
investmentfiduciarywithapurposetofurthersocial,political,
orideologicalinterests.
Thisbillfurtherprovidesthatallsharesheldbyoronbehalfof
apublicemployeeretirementsystem,theparticipants,andtheir
beneficiariesshallbevotedsolelyinthefinancialinterestof
participantsinthesystemandtheirbeneficiaries. Unlessno
economicallypracticablealternativeisavailable,thefollowing
actionsshallnotbeallowedunlessthereisapracticeand
commitmenttofollowguidelinesthatmatchthesystem'sobligations
toactsolelyuponfinancialfactors:
(1)Theboardofasystemgrantingproxyvotingauthorityto
personsnotontheboard;
(2)Thesystementrustingassetstoinvestmentfiduciaries;and
(3)Thesystemadoptingapracticeoffollowingthe
recommendations ofaproxyadvisororotherserviceprovider.
Allproxyvotesshallbetabulatedandprovidedinanannualreport
containingcertaininformationdescribedinthebilltotheboard
oftrustees. Suchreportshallbepostedonthesystem'swebsite.
TheAttorneyGeneralmayenforcetheprovisionsofthisbill,or
anycontractsubjecttotheprovisionsofthisbill.Ifthe
AttorneyGeneralhasreasonablecausetobelievethatapersonis
engaginginaviolationofthisbill,theAttorneyGeneralmay
requiresuchpersontofileawrittenstatementorreport,under
oath,astoallthefactsandcircumstancesconcerningthe
violation,andprovideothernecessarydataandinformation.
Additionally,asystemoraparticipantorbeneficiaryofasystem
maybringanactionfordamagesorinjunctivereliefagainstany
personviolatingthisbill.Inadditiontoanyotherremedies
available,acompanywhoservesasaninvestmentfiduciaryandwho
violatesthisbillshallbeobligatedtopaydamagesinanamount
equaltothreetimesallmoneyspaidtothecompanybythesystem. ThisbillissimilartoSB436(2023).