Should HB 4644 pass, it would amend existing state laws to eliminate certain regulations deemed burdensome. This could significantly alter the landscape of business governance within the state, making it easier and less costly for businesses to comply with legal requirements. The long-term expectation from supporters is that economic activity will flourish as businesses face fewer impediments to growth and expansion.
Summary
House Bill 4644, titled the 'No Expensive, Stifling Governance Act of 2023', seeks to mitigate the financial burden placed on businesses by reducing excessive regulatory oversight. The bill is rooted in the belief that streamlined governance will enhance economic growth by allowing companies to operate with fewer bureaucratic hurdles. Advocates argue that the current system imposes unnecessary costs on businesses, which can stifle innovation and competitiveness.
Contention
However, the bill has generated notable concern among various stakeholders who fear that such deregulation could lead to adverse consequences, such as weakened protections for consumers and the environment. Critics argue that without adequate regulatory frameworks, businesses might prioritize profit over public welfare, potentially impacting areas like public health and safety. This has raised fundamental questions about the balance between economic growth and social responsibility, leading to a divided opinion among legislators and community advocates.
Putting Investors First Act of 2023 This bill requires a proxy advisory firm to register with the Securities and Exchange Commission and prohibits an unregistered proxy advisory firm from using interstate commerce to provide proxy-voting advice, research, analysis, or recommendations to any client. With respect to these firms, the bill (1) establishes procedures for both registration and termination of registration; (2) requires each firm to employ an ombudsman, designate a compliance officer, and publicly disclose conflicts of interest; (3) allows issuers to assess and comment on proxy voting recommendations; and (4) prohibits unfair, coercive, or abusive practices. The bill establishes a private right of action against a proxy advisory firm that endorses an approved proposal that is not supported by the issuer and is found to be illegal.
To amend the Securities Exchange Act of 1934 to provide for duties of certain investment advisors, asset managers, and pension funds with respect to voting on shareholder proposals, and for other purposes.