Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB470

Introduced
2/6/23  

Caption

Energy Discrimination Elimination Act of 2022; requiring state governmental entities to act in pecuniary interest of plan participants; requiring proxy votes to be reported to State Treasurer. Effective date.

Impact

If enacted, SB470 would alter how state entities manage and vote on their investments. It seeks to eliminate any influence from external advisory bodies that do not align with the mandate of prioritizing financial returns. This change could significantly impact investment strategies and proxy vote practices across the state, requiring thorough documentation and adherence to strict financial objectives. Additionally, the requirement for annual reporting of proxy votes to the State Treasurer will enhance transparency in how public funds are handled.

Summary

Senate Bill 470, known as the Energy Discrimination Elimination Act of 2022, aims to ensure that state governmental entities act solely in the financial interest of the participants and beneficiaries of their investment plans. The bill defines the term 'state governmental entity' and mandates that all voting on shares held by these entities must align with pecuniary interests. It prohibits reliance on certain voting guidelines and restricts the granting of proxy voting authority to those who commit to similar financial-oriented practices.

Contention

The bill faces potential contention regarding its implications for environmental, social, and governance (ESG) considerations in investment decisions. Critics may argue that by prioritizing strict pecuniary interests, the bill could ignore broader societal and ethical impacts that might also benefit long-term financial performance. The limitation on engaging with proxy advisers who do not conform to these guidelines may limit flexibility in investment management and potentially alienate socially-conscious stakeholders, raising questions about the balance between fiscal responsibility and ethical governance.

Companion Bills

OK SB470

Carry Over Energy Discrimination Elimination Act of 2022; requiring state governmental entities to act in pecuniary interest of plan participants; requiring proxy votes to be reported to State Treasurer. Effective date.

Previously Filed As

OK SB470

Energy Discrimination Elimination Act of 2022; requiring state governmental entities to act in pecuniary interest of plan participants; requiring proxy votes to be reported to State Treasurer. Effective date.

OK HB2547

Public finance; shares; governmental entities; fiduciaries; proxy voting; reports; effective date; emergency.

OK HB2567

Public finance; shares; governmental entities; fiduciaries; proxy voting; reports; effective date; emergency.

OK SB469

State government; creating the Higher Education Energy Discrimination Elimination Act of 2023. Effective date.

OK HB2777

Public finance; Oklahoma Public Finance Protection Act; terms; standard of care; non-pecuniary factors; authority; shares; Attorney General; codification; effective date.

OK HB2545

Public finance; Oklahoma Public Finance Protection Act; terms; standard of care; non-pecuniary factors; authority; shares; Attorney General; codification; effective date.

OK HB1617

Public finance; Oklahoma Public Finance Protection Act; terms; standard of care; non-pecuniary; factors; authority; shares; Attorney General; codification; effective date.

OK SB742

Ad valorem tax; requiring request and submission to county treasurer of the listing of assets by delinquent taxpayer after notice; requiring confidentiality; providing exception in Open Records Act. Effective date.

OK HB1947

State government; creating the Eliminate Economic Boycotts Act; requiring written verification in certain contracts; effective date.

OK SB67

State government; requiring certain reporting to Fleet Management Division; expanding recipients of certain report. Effective date.

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OK HB3720

Local government investments; Oklahoma Local Government Investments Act of 2024; effective date.

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