Texas 2025 - 89th Regular

Texas House Bill HB4079

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

Caption

Relating to the provision of proxy advisory services in connection with certain entities domiciled in this state.

Impact

If enacted, HB 4079 would directly impact the operational practices of proxy advisory services operating in the state. The bill is designed to create standards that these firms must follow, potentially reshaping how they interact with both investors and companies. The regulation may foster an environment of accountability, giving investors clearer insights regarding proxy recommendations and ensuring that companies are fairly represented in shareholder decisions.

Summary

House Bill 4079 seeks to regulate the provision of proxy advisory services for entities that are domiciled within the state. This legislation is positioned to address the growing concerns about the influence and practices of proxy advisors, particularly in the context of corporate governance and shareholder voting. By establishing a regulatory framework, the bill aims to ensure that proxy advisory firms operate transparently and responsibly, enhancing the integrity of the investment process.

Contention

Despite the intent to provide more oversight, there may be contention surrounding HB 4079. Supporters argue that by instituting regulations, the bill would protect investors from potential biases in proxy advisory opinions and enhance shareholder democracy. However, opponents may view this as an unnecessary burden on proxy advisors, leading to increased costs and potentially limiting the availability of diverse opinions during critical voting processes. The balance between regulation and market freedom will likely be a central discussion point as the bill progresses.

Texas Constitutional Statutes Affected

Business Organizations Code

  • Chapter 2. Purposes And Power Of Domestic Entity
    • Section: New Section

Civil Practice And Remedies Code

  • Chapter 37. Declaratory Judgments
    • Section: New Section

Companion Bills

TX SB2337

Identical Relating to the regulation of the provision of proxy advisory services.

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 SB1514

Relating to business entities and nonprofit entities.

TX HB4279

Relating to business entities and nonprofit entities.

TX HB13

Relating to measures to address public safety threats in this state presented by transnational criminal activity, including by establishing the Texas Homeland Security Division and the Border Security Advisory Council, and to compensate persons affected by those threats.

TX SB2369

Relating to the reliability and resiliency of the power grid in this state; authorizing the issuance of revenue bonds.

TX SB1246

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

TX HB4611

Relating to the nonsubstantive revision of the health and human services laws governing the Health and Human Services Commission, Medicaid, and other social services.

TX SB2070

Relating to the funding of projects by the Public Utility Commission of Texas to promote the reliability and resiliency of the power grid in this state; authorizing the issuance of revenue bonds.

TX SB895

Relating to the regulation of money services businesses; creating a criminal offense; creating administrative penalties; authorizing the imposition of a fee.

Similar Bills

TX SB2337

Relating to the regulation of the provision of proxy advisory services.

LA HB902

Requires fiduciaries for public retirement systems to make investment decisions based solely on financial factors (OR SEE ACTUARIAL NOTE FC)

US HB4767

Protecting Americans’ Retirement Savings from Politics Act

IA HSB667

A bill for an act relating to actions regarding the economic interest of enterprise shareholders and participants in and beneficiaries of public pension benefit plans, and providing penalties.

US HB4589

To amend the Securities Exchange Act of 1934 to provide for the registration of proxy advisory firms, and for other purposes.

IA SSB1056

A bill for an act relating to actions regarding the economic interest of enterprise shareholders and participants in and beneficiaries of public pension benefit plans, and providing penalties.

US HB4790

Protecting Americans’ Retirement Savings from Politics Act Businesses Over Activists Act Guiding Uniform and Responsible Disclosure Requirements and Information Limits Act of 2023 American FIRST Act of 2023 American Financial Institution Regulatory Sovereignty and Transparency Act of 2023

IA HF721

A bill for an act relating to the consideration of nonfinancial factors in providing financial services, including actions regarding the economic interest of enterprise shareholders and participants in and beneficiaries of public pension benefit plans, and providing penalties.