Bill > HB3776

This bill introduces new reporting requirements for public retirement systems in Texas that have shares voted by proxy advisors or investment managers. The bill defines a "proxy advisor" as an entity that provides corporate governance ratings, proxy research, and voting services for compensation, and an "investment manager" as a professional investment management service provider. Public retirement systems must now report all proxy votes to the State Pension Review Board within 180 days of their fiscal year-end, including details such as vote captions, the system's vote, company recommendations, and proxy advisor recommendations. The reports will be publicly posted online. For investment managers granted proxy voting authority, they must submit a report for each 12-month period they manage system assets, though this requirement does not apply to managers handling less than $50 million in assets. The bill provides an alternative option for systems to link to their own publicly accessible website report instead of directly submitting a report. The State Pension Review Board is authorized to adopt rules to implement these new reporting requirements. The changes will only apply to contracts entered into on or after the bill's effective date of September 1, 2025, ensuring existing contracts remain under previous regulations.

Labor and Employment

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3776