Missouri 2025 Regular Session

Missouri Senate Bill SB389 Compare Versions

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Old	New	Differences
1	1
2	2	FIRST REGULAR SESSION
3	3	SENATE BILL NO. 389
4	4	103RD GENERAL ASSEMBLY
5	5	INTRODUCED BY SENATOR BLACK.
6	6	1175S.01I KRISTINA MARTIN, Secretary
7	7	AN ACT
8	8	To repeal section 105.688, RSMo, and to enact in lieu thereof two new sections relating to public
9	9	employee retirement systems.
10	10
11	11	Be it enacted by the General Assembly of the State of Missouri, as follows:
12	12	Section A. Section 105.688, RSMo, is rep ealed and two new 1
13	13	sections enacted in lieu thereof, to be known as sections 2
14	14	105.688 and 105.692, to read as follows:3
15	15	105.688. The assets of a system may be invested, 1
16	16	reinvested and managed by an investment fiduciary subject to 2
17	17	the terms, condition s and limitations provided in sections 3
18	18	105.687 to 105.689. An investment fiduciary shall discharge 4
19	19	his or her duties in the interest of the participants in the 5
20	20	system and their beneficiaries and shall: 6
21	21	(1) Act with the same care, skill, prudence, and 7
22	22	diligence under the circumstances then prevailing that a 8
23	23	prudent person acting in a similar capacity and familiar 9
24	24	with those matters would use in the conduct of a similar 10
25	25	enterprise with similar aims; 11
26	26	(2) Act with due regard for the manageme nt, 12
27	27	reputation, and stability of the issuer and the character of 13
28	28	the particular investments being considered; 14
29	29	(3) Make investments for the purposes of providing 15
30	30	benefits to participants and participants' beneficiaries, 16
31	31	and of defraying reasonable expenses of investing the assets 17
32	32	of the system; 18 SB 389 2
33	33	(4) Give appropriate consideration to those facts and 19
34	34	circumstances that the investment fiduciary knows or should 20
35	35	know are relevant to the particular investment or investment 21
36	36	course of action invol ved, including the role of the 22
37	37	investment or investment course of action plays in that 23
38	38	portion of the system's investments for which the investment 24
39	39	fiduciary has responsibility. For purposes of this 25
40	40	subdivision, "appropriate consideration" shall inclu de, but 26
41	41	is not necessarily limited to a determination by the 27
42	42	investment fiduciary that a particular investment or 28
43	43	investment course of action is reasonably designed, as part 29
44	44	of the investments of the system, to further the purposes of 30
45	45	the system, taking into consideration the risk of loss and 31
46	46	the opportunity for gain or other return associated with the 32
47	47	investment or investment course of action; and consideration 33
48	48	of the following factors as they relate to the investment or 34
49	49	investment course of actio n: 35
50	50	(a) The diversification of the investments of the 36
51	51	system; 37
52	52	(b) The liquidity and current return of the 38
53	53	investments of the system relative to the anticipated cash 39
54	54	flow requirements of the system; and 40
55	55	(c) The projected return of the in vestments of the 41
56	56	system relative to the funding objectives of the system; 42
57	57	(5) Give appropriate consideration to investments 43
58	58	which would enhance the general welfare of this state and 44
59	59	its citizens if those investments offer the safety and rate 45
60	60	of return comparable to other investments available to the 46
61	61	investment fiduciary at the time the investment decision is 47
62	62	made; 48 SB 389 3
63	63	(6) Not consider environmental, social, or governance 49
64	64	characteristics in a manner that would override his or her 50
65	65	fiduciary duties as described in this section; 51
66	66	(7) Not be subject to any legislative, regulatory, or 52
67	67	other mandates to invest with environmentally, socially, or 53
68	68	other noneconomically motivated influence unless such 54
69	69	mandates are consistent with the fiduciary's responsibility 55
70	70	as provided in this section or as provided in the system's 56
71	71	governing statutes, ordinances, charter, or documents with 57
72	72	respect to the investment of system assets or other duties 58
73	73	imposed by law relating to the investment, management, 59
74	74	deposit, or custody of system assets; and 60
75	75	(8) Not be subject to any legislative, regulatory, or 61
76	76	other mandates for divestment from any indirect holdings in 62
77	77	actively or passively managed investment funds or in private 63
78	78	assets unless such mandates are c onsistent with the 64
79	79	fiduciary's responsibility as provided in this section . 65
80	80	105.692. 1. All shares of common stock held directly 1
81	81	by a system, as such term is defined in section 105.687, 2
82	82	shall be voted solely in the economic interest of the 3
83	83	participants of the system. Voting shares for the sole 4
84	84	purposes of furthering noneconomic environmental, social, 5
85	85	political, ideological, or other goals is prohibited. 6
86	86	2. A system shall vote all proxies associated with its 7
87	87	directly held shares of common stock by one of the following 8
88	88	methods: 9
89	89	(1) By internal system staff; or 10
90	90	(2) By an investment manager or proxy voting service 11
91	91	provider who has committed in writing to vote the shares 12
92	92	pursuant to proxy voting guidelines chosen b y the system or 13
93	93	has committed in writing to vote the shares in a manner 14 SB 389 4
94	94	consistent with the obligation to act solely in the economic 15
95	95	interest of the participants of the system. 16
96	96	