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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 2547 By: O'Donnell and McBride
COMMITTEE SUBSTITUTE
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 advice
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 PEOPLE 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 follow s:
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 m ay not rely on any voting decision
guidance from any company listed on the restricted financial
institutions and companies generated by the Treasurer pursuant to
Section 12003 of Title 74 of the Oklahoma Statutes .
C. Unless no economically practicable alt ernative is available,
a governmental entity may not grant 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 available,
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 governmental
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 adviser
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 th e governmental entity's obligation to act
solely upon pecuniary factors.
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F. All proxy votes shall be tabulate d 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, health 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 it s passage and approval.
COMMITTEE REPORT BY: COMMITTEE ON ENERGY AND NATURAL RESOURCES,
dated 02/23/2023 - DO PASS, As Amended.