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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
HOUSE BILL 2547 By: O'Donnell and McBride
AS INTRODUCED
An Act relating to public finance; imposing
requirements with respect to certain shares;
prohibiting governmental entities from relying on
information provided by certain entities; prohibiting
grant of proxy voting rights; providing exceptions;
prohibiting public retirement systems from certain
action; prohibiting actions with respect to advi ce
provided by proxy advisers; requiring tabulation of
certain proxy votes; requiring report to the State
Treasurer; providing for codification; providing an
effective date; and d eclaring an emergency .
BE IT ENACTED BY THE PEOPL E OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codif ied
in the Oklahoma Statutes as Section 8001 of Title 62, unless there
is created a duplication in numbering, reads as follows:
A. All shares held directly or indirectly by or on behalf of a
governmental entity and/or the participants and their beneficiar ies
shall be voted solely in the pecuniary interest of plan participants
and their beneficiarie s.
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B. A governmental entity may not rely on any voting decision
guidance from any company listed on the restricted financial
institutions and companies list maintained under subsection D of
this section.
C. Unless no economically practicable alternative is available,
a governmental entity may not gran t proxy voting authority to any
person who is not a part of the governmental entity, unless that
person has a practice of, and in writing commits to, following
guidelines that match the governmental entity 's obligation to act
solely upon pecuniary factors.
D. Unless no economically practicable alternative is avai lable,
public retirement system assets shall not be e ntrusted to a
fiduciary, unless that fiduciary has a practice of, and in writing
commits to, follow guideline s, when engaging with portfolio
companies and voting shares or proxies, that match the governm ental
entity's obligation to act solely upon pecuniary factors.
E. Unless no economically practicable alternative is available,
an investment manager, fiduciary or governmental entity may not
adopt a practice of following the recommendations of a proxy ad viser
or other service provider, unless such adviser or service provider
has a practice of, and in writing commits to, follow proxy voting
guidelines that match the governmental entity 's obligation to act
solely upon pecuniary factors.
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F. All proxy votes shall be tabulated and reported annually to
the State Treasurer. For each vote, the report shall conta in a vote
caption, the plan's vote, the recommendation of company management,
and, if applicable, the proxy adviser 's recommendation. These
reports shall be posted on a publicly available webpage on the State
Treasurer's website.
SECTION 2. This act shall become effective July 1, 2023.
SECTION 3. It being immediately necessary for the preservation
of the public peace, hea lth or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage an d approval.
59-1-7149 MAH 01/17/23