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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
SENATE BILL 470 By: Paxton
AS INTRODUCED
An Act relating to the Energy Discrimination
Elimination Act of 2022; defining term; requiring
state governmental entities to act in pecuniary
interest of plan participants when taking certain
action; prohibiting entities from rel ying upon
certain guidelines; prohibiting state governmental
entities from conducting certain pract ices with
certain exception; requiring certain proxy votes to
be reported to the State Treasurer and published
publicly; directing rule promul gation; providing for
codification; and providing an effective d ate.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF O KLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 12003.1 of Title 74, unless
there is created a duplication in numb ering, reads as follows:
A. For the purposes of this section, the term “state
governmental entity” shall have the same meaning as Section 12002 of
Title 74 of the Oklahoma Statutes.
B. All shares held directly or indirectly by or on behalf of a
state governmental entity , the participants, and their benefi ciaries
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shall be voted solely in the pecuniary interest of plan p articipants
and their beneficiaries .
A state governmental entity shall not rely on any voting
decision guidance from any company listed by the State Treasurer
pursuant to subsection A of Section 12003 of T itle 74 of the
Oklahoma Statutes.
C. Unless no economically practicable alternative is available :
1. A state governmental entit y shall not grant proxy voting
authority to any person who is not a part of the entity unless that
person has a practice of, an d in writing commits to, following
guidelines that match the state governmental entity ’s obligation to
act solely upon pecuniary factors;
2. State governmental entit y assets shall not be entrusted to a
fiduciary, unless that fiduciary has a practice of, a nd in writing
commits to, following guidelines when engaging with portfolio
companies and voting shares or proxies that match the state
governmental entity’s obligation to act solely upon pecuniary
factors; and
3. An investment manager, fiduciary, or state governmental
entity shall not adopt a practice of following the recommendations
of a proxy adviser or other service provider, unless such adviser or
service provider has a pra ctice of, and in writing commits to,
following proxy voting guidelines that mat ch the governmental
entity’s obligation to act sole ly upon pecuniary factors .
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D. All proxy votes shall be tabulated and report ed annually to
the State Treasurer. For each vote, the report sh all contain a vote
caption, the plan’s vote, the recommendation of company management,
and, if applicable, the prox y adviser’s recommendation. These
reports shall be posted on a publicly avai lable webpage on the
Treasurer’s website. The State Treasurer shall promulgate rules to
implement this provision.
SECTION 2. This act shall become effective Nove mber 1, 2023.
59-1-1494 RD 1/17/2023 1:04:00 PM