| 1 | 1 | | SECONDREGULARSESSION |
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| 2 | 2 | | HOUSEBILLNO.1937 |
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| 3 | 3 | | 102NDGENERALASSEMBLY |
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| 4 | 4 | | INTRODUCEDBYREPRESENTATIVEOWEN. |
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| 5 | 5 | | 2894H.01I DANARADEMANMILLER,ChiefClerk |
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| 6 | 6 | | ANACT |
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| 7 | 7 | | Torepealsection105.688,RSMo,andtoenactinlieuthereoftwonewsectionsrelatingto |
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| 8 | 8 | | publicemployeeretirementsystems. |
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| 9 | 9 | | BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows: |
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| 10 | 10 | | SectionA.Section105.688,RSMo,isrepealedandtwonewsectionsenactedinlieu |
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| 11 | 11 | | 2thereof,tobeknownassections105.688and105.692,toreadasfollows: |
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| 12 | 12 | | 105.688.Theassetsofasystemmaybeinvested,reinvestedandmanagedbyan |
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| 13 | 13 | | 2investmentfiduciarysubjecttotheterms,conditionsandlimitationsprovidedinsections |
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| 14 | 14 | | 3105.687to105.689.Aninvestmentfiduciaryshalldischargehisorherdutiesintheinterest |
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| 15 | 15 | | 4oftheparticipantsinthesystemandtheirbeneficiariesandshall: |
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| 16 | 16 | | 5 (1)Actwiththesamecare,skill,prudence,anddiligenceunderthecircumstances |
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| 17 | 17 | | 6thenprevailingthataprudentpersonactinginasimilarcapacityandfamiliarwiththose |
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| 18 | 18 | | 7matterswoulduseintheconductofasimilarenterprisewithsimilaraims; |
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| 19 | 19 | | 8 (2)Actwithdueregardforthemanagement,reputation,andstabilityoftheissuerand |
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| 20 | 20 | | 9thecharacteroftheparticularinvestmentsbeingconsidered; |
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| 21 | 21 | | 10 (3)Makeinvestmentsforthepurposesofprovidingbenefitstoparticipantsand |
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| 22 | 22 | | 11participants'beneficiaries,andofdefrayingreasonableexpensesofinvestingtheassetsofthe |
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| 23 | 23 | | 12system; |
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| 24 | 24 | | 13 (4)Giveappropriateconsiderationtothosefactsandcircumstancesthatthe |
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| 25 | 25 | | 14investmentfiduciaryknowsorshouldknowarerelevanttotheparticularinvestmentor |
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| 26 | 26 | | 15investmentcourseofactioninvolved,includingtheroleoftheinvestmentorinvestment |
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| 27 | 27 | | 16courseofactionplaysinthatportionofthesystem'sinvestmentsforwhichtheinvestment |
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| 28 | 28 | | 17fiduciaryhasresponsibility.Forpurposesofthissubdivision,"appropriateconsideration" |
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| 29 | 29 | | EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis |
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| 30 | 30 | | intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 18shallinclude,butisnotnecessarilylimitedtoadeterminationbytheinvestmentfiduciarythat |
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| 31 | 31 | | 19aparticularinvestmentorinvestmentcourseofactionisreasonablydesigned,aspartofthe |
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| 32 | 32 | | 20investmentsofthesystem,tofurtherthepurposesofthesystem,takingintoconsiderationthe |
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| 33 | 33 | | 21riskoflossandtheopportunityforgainorotherreturnassociatedwiththeinvestmentor |
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| 34 | 34 | | 22investmentcourseofaction;andconsiderationofthefollowingfactorsastheyrelatetothe |
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| 35 | 35 | | 23investmentorinvestmentcourseofaction: |
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| 36 | 36 | | 24 (a)Thediversificationoftheinvestmentsofthesystem; |
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| 37 | 37 | | 25 (b)Theliquidityandcurrentreturnoftheinvestmentsofthesystemrelativetothe |
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| 38 | 38 | | 26anticipatedcashflowrequirementsofthesystem;and |
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| 39 | 39 | | 27 (c)Theprojectedreturnoftheinvestmentsofthesystemrelativetothefunding |
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| 40 | 40 | | 28objectivesofthesystem; |
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| 41 | 41 | | 29 (5)Giveappropriateconsiderationtoinvestmentswhichwouldenhancethegeneral |
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| 42 | 42 | | 30welfareofthisstateanditscitizensifthoseinvestmentsofferthesafetyandrateofreturn |
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| 43 | 43 | | 31comparabletootherinvestmentsavailabletotheinvestmentfiduciaryatthetimethe |
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| 44 | 44 | | 32investmentdecisionismade; |
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| 45 | 45 | | 33 (6)Notconsiderenvironmental,social,orgovernancecharacteristicsina |
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| 46 | 46 | | 34mannerthatwouldoverridehisorherfiduciarydutiesasdefinedinthissection; |
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| 47 | 47 | | 35 (7)Notbesubjecttoanylegislative,regulatory,orothermandatestoinvestwith |
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| 48 | 48 | | 36environmentally,socially,orothernoneconomicallymotivatedinfluenceunlesstheyare |
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| 49 | 49 | | 37consistentwiththefiduciary'sresponsibilityasprovidedinthissectionorasprovidedin |
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| 50 | 50 | | 38thesystem’sgoverningstatuteswithrespecttotheinvestmentofsystemassetsorother |
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| 51 | 51 | | 39dutiesimposedbylawrelatingtotheinvestment,management,deposit,orcustodyof |
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| 52 | 52 | | 40systemassets;and |
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| 53 | 53 | | 41 (8)Notbesubjecttoanylegislative,regulatory,orothermandatesfor |
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| 54 | 54 | | 42divestmentfromanyindirectholdingsinactivelyorpassivelymanagedinvestment |
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| 55 | 55 | | 43fundsorinprivateassets. |
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| 56 | 56 | | 105.692.1.Allsharesofcommonstockhelddirectlybyasystem,asdefined |
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| 57 | 57 | | 2undersection105.687,shallbevotedsolelyintheeconomicinterestofplanparticipants. |
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| 58 | 58 | | 3Votingsharesforthepurposesoffurtheringnoneconomicenvironmental,social, |
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| 59 | 59 | | 4political,ideological,orothergoalsisprohibited. |
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| 60 | 60 | | 5 2.Asystemshallvoteallproxiesassociatedwithitsdirectlyheldsharesof |
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| 61 | 61 | | 6commonstockbyoneofthefollowingmethods: |
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| 62 | 62 | | 7 (1)Byinternalsystemstaff;or |
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| 63 | 63 | | 8 (2)Byaninvestmentmanagerorproxyvotingserviceproviderwhohas |
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| 64 | 64 | | 9committedinwritingtovotethesharespursuanttoproxyvotingguidelineschosenby |
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| 65 | 65 | | HB1937 2 10thesystemorhascommittedinwritingtovotethesharesinamannerconsistentwith |
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| 66 | 66 | | 11theobligationtoactsolelyintheeconomicinterestofplanparticipants. |
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| 67 | 67 | | ✔ |
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| 68 | 68 | | HB1937 3 |
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