Bill > HB1170

This bill introduces the Oklahoma Public Finance Protection Act, which establishes strict guidelines for how public pension benefit plans and their fiduciaries must manage investments. The act defines key terms like "fiduciary" and "nonpecuniary factors," and mandates that pension plan managers can only make investment decisions based on pecuniary (financial) factors that have a material effect on potential financial risks or returns. Fiduciaries are prohibited from considering environmental, social, political, or ideological goals when making investment choices, though such factors can be incidentally considered if they present genuine economic risks or opportunities. The bill requires all proxy votes to be voted solely in the financial interest of plan participants, with annual reporting of voting records, and places proxy voting authority primarily with the Board of Trustees. The State Treasurer is authorized to notify legislative leaders if potential violations are suspected, and the Attorney General can investigate and enforce the act. The bill also provides immunity from civil liability for state officials and pension plan representatives related to actions taken under this act, and includes provisions for indemnification. The act will become effective on July 1, 2025, and contains an emergency clause allowing immediate implementation upon passage.

Business and Industry, Government Affairs

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