Bill > HB2476

This bill revises laws related to pension plans and proxy advisors, defining terms like "company," "direct holdings," "fiduciary" (someone managing a pension plan's assets or providing investment advice), "financial analysis" (a written evaluation of a proxy advisor's recommendation), "indirect holdings" (securities held in pooled funds), "pension plan" (a defined benefit plan for political subdivision employees), "person," "political subdivision" (local government entities), and "proxy advisory firm" (an entity providing proxy voting advice for compensation). It mandates that political subdivisions managing pension plans must invest and vote securities for the exclusive financial benefit of beneficiaries, maximizing long-term shareholder value, and must submit an annual report detailing proxy advisory firm usage and voting differences. Furthermore, pension plans cannot contract with proxy advisory firms unless the firm agrees to its obligations under the law, and proxy advisory firms are prohibited from providing advice if conflicts of interest exist, must provide a financial analysis for differing recommendations, and cannot base negative recommendations on previously approved shareholder proposals. This act takes effect on July 1, 2026.