Bill > HB1170

This bill, known as the "Oklahoma Public Finance Protection Act," establishes new rules for fiduciaries, who are individuals managing pension benefit plans (plans providing retirement income to state employees). The act defines "nonpecuniary factors" as considerations not directly related to financial risk or return, such as environmental or social goals, and "pecuniary factors" as those that prudently impact financial risk or return. It mandates that fiduciaries must discharge their duties solely based on pecuniary factors for the exclusive benefit of plan participants and beneficiaries, acting with the care of a prudent investor. The bill specifically prohibits promoting nonpecuniary benefits and requires that proxy votes, which are votes cast on behalf of the plan's shares, must also be solely in the pecuniary interest of participants. It outlines procedures for proxy advisory firms and service providers to ensure their recommendations align with these pecuniary principles, and clarifies that proxy voting authority generally resides with the Board of Trustees, though it can be delegated under strict conditions, with all proxy votes to be publicly reported. The Attorney General is empowered to enforce the act, investigate potential violations, and seek court orders. Furthermore, the bill grants immunity from civil liability to the state, pension plans, and their officers and employees for actions related to the act, and provides for indemnification for legal defense costs. Finally, it includes a severability clause, meaning if any part of the act is found invalid, the rest will remain in effect.