Oklahoma 2023 Regular Session

Oklahoma House Bill HB2567 Compare Versions

Only one version of the bill is available at this time.

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27	27	STATE OF OKLAHOMA
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29	29	1st Session of the 59th Legislature (2023)
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31	31	HOUSE BILL 2567 By: McBride and O'Donnell
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37	37	AS INTRODUCED
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39	39	An Act relating to public finance; imposing
40	40	requirements with respect to certain shares;
41	41	prohibiting governmental entities from relying on
42	42	information provided by certain entities; prohibiting
43	43	grant of proxy voting rights; providing exceptions;
44	44	prohibiting public retirement systems from certain
45	45	action; prohibiting actions with respect to advi ce
46	46	provided by proxy advisers; requiring tabulation of
47	47	certain proxy votes; requiring report to the State
48	48	Treasurer; providing for codification; providing an
49	49	effective date; and d eclaring an emergency .
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55	55	BE IT ENACTED BY THE PEOPL E OF THE STATE OF OKLAHOMA:
56	56	SECTION 1. NEW LAW A new section of law to be codif ied
57	57	in the Oklahoma Statutes as Section 8001 of Title 62, unless there
58	58	is created a duplication in numbering, reads as follows:
59	59	A. All shares held directly or indirectly by or on behalf of a
60	60	governmental entity and/or the participants and their beneficiar ies
61	61	shall be voted solely in the pecuniary interest of plan participants
62	62	and their beneficiarie s.
63	63	B. A governmental entity may not rely on any voting decision
64	64	guidance from any company listed on the restricted financial
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90	90	institutions and companies list maintained under subsection D of
91	91	this section.
92	92	C. Unless no economically practicable alternative is available,
93	93	a governmental entity may not gran t proxy voting authority to any
94	94	person who is not a part of the governmental entity, unless that
95	95	person has a practice of, and in writing commits to, following
96	96	guidelines that match the governmental entity 's obligation to act
97	97	solely upon pecuniary factors.
98	98	D. Unless no economically practicable alternative is avail able,
99	99	public retirement system assets shall not be en trusted to a
100	100	fiduciary, unless that fiduciary has a practice of, and in writing
101	101	commits to, follow guideline s, when engaging with portfolio
102	102	companies and voting shares or proxies, that match the governme ntal
103	103	entity's obligation to act solely upon pecuniary factors.
104	104	E. Unless no economically practicable alternative is available,
105	105	an investment manager, fiduciary or governmental entity may not
106	106	adopt a practice of following the recommendations of a proxy adv iser
107	107	or other service provider, unless such adviser o r service provider
108	108	has a practice of, and in writing commits to, follow proxy voting
109	109	guidelines that match the governmental entity 's obligation to act
110	110	solely upon pecuniary factors.
111	111	F. All proxy votes shall be tabulated and reported annually to
112	112	the State Treasurer. For each vote, the report shall conta in a vote
113	113	caption, the plan's vote, the recommendation of company management,
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139	139	and, if applicable, the proxy adviser 's recommendation. These
140	140	reports shall be posted on a publicly available webpage on the State
141	141	Treasurer's website.
142	142	SECTION 2. This act shall become effective July 1, 2023.
143	143	SECTION 3. It being immediately necessary for the preservation
144	144	of the public peace, healt h or safety, an emergency is hereby
145	145	declared to exist, by reason whereof this act shall take effect and
146	146	be in full force from and after its passage an d approval.
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148	148	59-1-5578 MAH 01/19/23