Bill > HB1170

This bill, known as the Oklahoma Public Finance Protection Act, establishes new rules for how public pension benefit plans in Oklahoma are managed, with a focus on financial considerations. It defines a "fiduciary" as someone who manages a pension plan's assets or provides investment advice, and clarifies that "nonpecuniary" factors are those unrelated to financial risk or return, such as environmental or social goals, while "pecuniary" factors are those that prudently impact financial outcomes. The act mandates that fiduciaries must manage pension plans solely for the financial benefit of participants and beneficiaries, acting with the care of a prudent investor and diversifying investments to minimize risk. It explicitly prohibits fiduciaries from considering nonpecuniary factors or promoting nonpecuniary goals when making investment decisions or voting on company shares (proxies), and requires that proxy votes be cast solely in the financial interest of plan participants. The bill also outlines procedures for the State Treasurer to refer potential violations to the Attorney General, who is granted authority to investigate and enforce the act, and provides immunity and indemnification for the state and individuals involved in managing these plans, ensuring that if any part of the act is found invalid, the rest will remain in effect.

Business and Industry, Government Affairs

http://www.oklegislature.gov/BillInfo.aspx?Bill=hb1170&Session=2600