Old	New	Differences
1	1
2	2
3	3
4	4	Req. No. 250 Page 1 1
5	5	2
6	6	3
7	7	4
8	8	5
9	9	6
10	10	7
11	11	8
12	12	9
13	13	10
14	14	11
15	15	12
16	16	13
17	17	14
18	18	15
19	19	16
20	20	17
21	21	18
22	22	19
23	23	20
24	24	21
25	25	22
26	26	23
27	27	24
28	28	1
29	29	2
30	30	3
31	31	4
32	32	5
33	33	6
34	34	7
35	35	8
36	36	9
37	37	10
38	38	11
39	39	12
40	40	13
41	41	14
42	42	15
43	43	16
44	44	17
45	45	18
46	46	19
47	47	20
48	48	21
49	49	22
50	50	23
51	51	24
52	52
53	53	STATE OF OKLAHOMA
54	54
55	55	1st Session of the 59th Legislature (2023)
56	56
57	57	SENATE BILL 1004 By: Jett
58	58
59	59
60	60
61	61
62	62
63	63	AS INTRODUCED
64	64
65	65	An Act relating to public retirement systems;
66	66	creating the Oklahoma Pension Fiduciary Du ty Act;
67	67	providing short title; defining terms; requiring the
68	68	discharge of duties solely in the financial interest
69	69	of certain participants and beneficiaries; requiring
70	70	certain fiduciary to be subject to certain duties;
71	71	limiting considerati on upon discharge of certain
72	72	duties; requiring certain shares to be held solely
73	73	for certain financial interest; prohibiting the
74	74	granting of proxy voter status except under certain
75	75	circumstance; prohibiting adoption of certain
76	76	practice except under certain circumstance; requiring
77	77	the recording and publication of certain pro xy votes;
78	78	authorizing Attorney General to investigate
79	79	violations of the Oklah oma Pension Fiduciary Duty
80	80	Act; providing for penalty for violation; providing
81	81	for noncodification; providing for codification; a nd
82	82	providing an effective date.
83	83
84	84
85	85
86	86	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
87	87	SECTION 1. NEW LAW A new section of law not to be
88	88	codified in the Oklahoma Statutes reads as follows:
89	89	This act shall be know n and may be cited as the “Oklahoma
90	90	Pension Fiduciary Duty Act”.
91	91
92	92
93	93	Req. No. 250 Page 2 1
94	94	2
95	95	3
96	96	4
97	97	5
98	98	6
99	99	7
100	100	8
101	101	9
102	102	10
103	103	11
104	104	12
105	105	13
106	106	14
107	107	15
108	108	16
109	109	17
110	110	18
111	111	19
112	112	20
113	113	21
114	114	22
115	115	23
116	116	24
117	117	1
118	118	2
119	119	3
120	120	4
121	121	5
122	122	6
123	123	7
124	124	8
125	125	9
126	126	10
127	127	11
128	128	12
129	129	13
130	130	14
131	131	15
132	132	16
133	133	17
134	134	18
135	135	19
136	136	20
137	137	21
138	138	22
139	139	23
140	140	24
141	141
142	142	SECTION 2. NEW LAW A new section of law to be codified
143	143	in the Oklahoma Statutes as Section 3600 of Title 62, unless there
144	144	is created a duplication in numb ering, reads as follows:
145	145	A. As used in the Oklahoma Pension Fiduciary Duty Act:
146	146	1. “Fiduciary” means any person acting on behalf of a public
147	147	retirement system;
148	148	2. “Fiduciary commitment” means any evidence of a fiduciary's
149	149	purpose in managing assets as a fiduciary, including but not limited
150	150	to, any of the following in a fiduci ary's capacity as a fiduciary:
151	151	a. advertising, statements, explanations, reports,
152	152	letters to clients, communications with portfolio
153	153	companies, statements of principles, or commitments ,
154	154	or
155	155	b. participation in, affiliation with, or status as a
156	156	signatory to, any coalition, initiative, joint
157	157	statement of principles, or agreement ;
158	158	3. “Financial” means having been prudently determined by a
159	159	fiduciary to have a material effect on the financial risk or the
160	160	financial return of an investment . Financial shall not mean any
161	161	action taken, or factor considered, by a fiduciary with any purpose
162	162	whatsoever to further social, political, or ideological interests .
163	163	A fiduciary shall have taken an action, or considered a factor, with
164	164	a purpose to further social, political, or id eological interests
165	165	based upon evidence indicating such a purpose, including but not
166	166
167	167
168	168	Req. No. 250 Page 3 1
169	169	2
170	170	3
171	171	4
172	172	5
173	173	6
174	174	7
175	175	8
176	176	9
177	177	10
178	178	11
179	179	12
180	180	13
181	181	14
182	182	15
183	183	16
184	184	17
185	185	18
186	186	19
187	187	20
188	188	21
189	189	22
190	190	23
191	191	24
192	192	1
193	193	2
194	194	3
195	195	4
196	196	5
197	197	6
198	198	7
199	199	8
200	200	9
201	201	10
202	202	11
203	203	12
204	204	13
205	205	14
206	206	15
207	207	16
208	208	17
209	209	18
210	210	19
211	211	20
212	212	21
213	213	22
214	214	23
215	215	24
216	216
217	217	limited to, any fiduciary commitment to further, throug h portfolio
218	218	company engagement, board or shareholder votes, or oth erwise as a
219	219	fiduciary, any of the following beyond the fiduciary's duties as
220	220	provided in the Oklahoma Statutes:
221	221	a. eliminating, reducing, offsetting, or disclosing
222	222	greenhouse gas emissions ,
223	223	b. instituting board or employment composition,
224	224	compensation, or disclosure criteria that incorporates
225	225	characteristics based on race, sex, religion, or
226	226	ideology,
227	227	c. divesting from, limiting investment in, or limiting
228	228	the activities or investments of any company, for
229	229	failing or not committing, to mee t standards or
230	230	disclosures relating to:
231	231	(1) the environment,
232	232	(2) abortion access, or
233	233	(3) access to gender reassignment therapy or surgery,
234	234	or
235	235	d. divesting from, limiting investment in, or limiting
236	236	the activities or investments of any company that
237	237	engages in, facilitates, or sup ports the manufacture,
238	238	import, distribution, marke ting or advertising, sale,
239	239	or lawful use of firearms, ammunition , or components
240	240	parts and accessories of firearms or ammunition ;
241	241
242	242
243	243	Req. No. 250 Page 4 1
244	244	2
245	245	3
246	246	4
247	247	5
248	248	6
249	249	7
250	250	8
251	251	9
252	252	10
253	253	11
254	254	12
255	255	13
256	256	14
257	257	15
258	258	16
259	259	17
260	260	18
261	261	19
262	262	20
263	263	21
264	264	22
265	265	23
266	266	24
267	267	1
268	268	2
269	269	3
270	270	4
271	271	5
272	272	6
273	273	7
274	274	8
275	275	9
276	276	10
277	277	11
278	278	12
279	279	13
280	280	14
281	281	15
282	282	16
283	283	17
284	284	18
285	285	19
286	286	20
287	287	21
288	288	22
289	289	23
290	290	24
291	291
292	292	4. "Proxy vote" means a ballot cast by a person or entity on
293	293	behalf of a public retirement system as a shareholder of a public ly
294	294	traded company; and
295	295	5. "Public retirement system" means the following:
296	296	a. the Oklahoma Firefighters Pension and Retirement
297	297	System,
298	298	b. the Oklahoma Police Pension and Retirement System
299	299	c. the Uniform Retirement System for Justices and Judges
300	300	d. the Oklahoma Law Enforcement Retirement System
301	301	e. the Teachers' Retirement System of Oklahoma
302	302	f. the Oklahoma Public Employees Retirement System , and
303	303	g. any retirement or pension system or plan maintained,
304	304	provided, or offered by any political subdivision of
305	305	this state.
306	306	B. In making and supervising investments of the reserve fund of
307	307	a public retirement system, a fiduciary or board of a public
308	308	retirement system shall discharge its duties solely in the financial
309	309	interest of the participants and beneficiaries for the exclusive
310	310	purposes of:
311	311	1. Providing financial benefits to participants and their
312	312	beneficiaries; and
313	313	2. Defraying reasonable expenses of a dministering the system.
314	314
315	315
316	316	Req. No. 250 Page 5 1
317	317	2
318	318	3
319	319	4
320	320	5
321	321	6
322	322	7
323	323	8
324	324	9
325	325	10
326	326	11
327	327	12
328	328	13
329	329	14
330	330	15
331	331	16
332	332	17
333	333	18
334	334	19
335	335	20
336	336	21
337	337	22
338	338	23
339	339	24
340	340	1
341	341	2
342	342	3
343	343	4
344	344	5
345	345	6
346	346	7
347	347	8
348	348	9
349	349	10
350	350	11
351	351	12
352	352	13
353	353	14
354	354	15
355	355	16
356	356	17
357	357	18
358	358	19
359	359	20
360	360	21
361	361	22
362	362	23
363	363	24
364	364
365	365	C. An investment manager appointed by a public retirement
366	366	system shall be subject to the s ame fiduciary duties as provided in
367	367	this act.
368	368	D. A fiduciary shall take into account only financial factors
369	369	when discharging its duties wit h respect to a plan.
370	370	E. All shares held directly or indire ctly by or on behalf of a
371	371	public retirement system and/or the participants and their
372	372	beneficiaries shall be held solely in the financial interest of plan
373	373	participants and their beneficiaries.
374	374	F. A public retirement system shall not grant proxy voting
375	375	authority to any person who is not a n employee of the system , unless
376	376	that person has a practice of, and in writing commits to, the
377	377	adherence to the provisions of this act .
378	378	G. A public retirement syste m's assets shall not be entrusted
379	379	to a fiduciary, unless that fidu ciary has a practice of, and in
380	380	writing commits to, adherence to the provi sions of this act when
381	381	engaging with portfolio companies and voting shares or proxies .
382	382	H. A public retirement system shall not adopt a practice of
383	383	following the recommendations of a proxy advisor or other service
384	384	provider, unless such advisor or service pr ovider has a practice of,
385	385	and in writing commits to, adherence to the provisions of this act .
386	386	I. All proxy votes shall be tabulated and reported annu ally to
387	387	the governing board of every public retirement system. For each
388	388	vote, the report shall contain a vote caption, the plan 's vote, the
389	389
390	390
391	391	Req. No. 250 Page 6 1
392	392	2
393	393	3
394	394	4
395	395	5
396	396	6
397	397	7
398	398	8
399	399	9
400	400	10
401	401	11
402	402	12
403	403	13
404	404	14
405	405	15
406	406	16
407	407	17
408	408	18
409	409	19
410	410	20
411	411	21
412	412	22
413	413	23
414	414	24
415	415	1
416	416	2
417	417	3
418	418	4
419	419	5
420	420	6
421	421	7
422	422	8
423	423	9
424	424	10
425	425	11
426	426	12
427	427	13
428	428	14
429	429	15
430	430	16
431	431	17
432	432	18
433	433	19
434	434	20
435	435	21
436	436	22
437	437	23
438	438	24
439	439
440	440	recommendation of company management, and, if applicable, the proxy
441	441	advisor's recommendation. These reports shall be posted on a
442	442	publicly available webpage on the governing board's website.
443	443	J. Violations of this act may be investigated by the Attorney
444	444	General who shall, upon finding reasonable cau se after
445	445	investigation, require a fiduc iary to file on such forms as he or
446	446	she prescribes a statement or report in writing, under oath, as to
447	447	all the facts and circumstances concerning the violation and to
448	448	provide other data or information the Attorney General deems
449	449	necessary.
450	450	K. Any company who contracts with a public retirement system
451	451	that violates the provisions of this act shall be o bligated to pay a
452	452	penalty to the public retirement system an amount equal to three (3)
453	453	times the required annual payments for services re ndered pursuant to
454	454	the contract.
455	455	SECTION 3. This act shall become eff ective November 1, 2023.
456	456
457	457	59-1-250 QD 1/19/2023 12:16:22 PM

Oklahoma 2023 Regular Session

Oklahoma Senate Bill SB1004 Compare Versions