TX
Texas House Bill HB3776

Texas 2025 - 89th Regular

Texas House Bill HB3776

Voted on by House
 
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to reporting requirements for a public retirement system that authorizes the system's shares to be voted by a proxy advisor or investment manager.

Impact

The implementation of HB 3776 will have significant implications for the governance of public retirement systems in Texas. It requires that the governing bodies of these systems submit annual reports detailing all proxy votes, which can influence shareholder decisions. This requirement is expected to direct attention towards the decision-making processes of investment managers and proxy advisors, marking a shift towards more transparent practices that could enhance trust and performance within the public investment sector.

Summary

House Bill 3776 seeks to enhance the reporting requirements for public retirement systems that allow their shares to be voted by a proxy advisor or investment manager. The bill mandates that these systems provide detailed tabulations of proxy votes made on their behalf within a specified timeframe, ensuring accountability and transparency in how these votes are cast. By requiring public retirement systems to report proxy voting activities, the legislation aims to foster an environment where shareholders are adequately informed about proxy decisions affecting their investments.

Contention

One of the notable points of contention surrounding HB 3776 is the balance between transparency and the operational burden it places on public retirement systems and their investment managers. Critics argue that the report requirements could lead to increased administrative costs and complexity, particularly for smaller systems and managers who may not handle substantial funds. Proponents, however, contend that such transparency is essential for public trust and can ultimately support better governance and investment decisions for retirement funds.

Texas Constitutional Statutes Affected

Government Code

  • Chapter 802. Administrative Requirements
    • Section: New Section

Companion Bills

No companion bills found.

Previously Filed As

TX SB1446

Relating to the fiduciary responsibility of the governing body of the public retirement systems in this state and the investment managers and proxy advisors acting on behalf of those systems.

TX HB2068

Relating to the fiduciary responsibility of governmental entities and the investment agents, plan administrators, or qualified vendors acting on behalf of those entities.

TX SB1246

Relating to authorized investments of public money by certain governmental entities and the confidentiality of certain information related to those investments.

TX HB4000

Relating to the public retirement systems for employees of certain municipalities.

TX SB1444

Relating to the public retirement systems for employees of certain municipalities.

TX HB3495

Relating to the investment authority of certain state agencies and the confidentiality of certain information related to those investments.

TX HB4139

Relating to a pilot program to study implementation of a split-benefit life insurance plan for the Teacher Retirement System of Texas.

TX HB3340

Relating to the public retirement systems of certain municipalities.

TX HB4863

Relating to contributions to, benefits from, and the administration of the Teacher Retirement System of Texas.

TX HB3867

Relating to requirements regarding certain behavior management for a student enrolled in a special education program of a public school and related reporting requirements regarding the use of restraint.

Similar Bills

No similar bills found.