Bill > HB2476

This bill requires individuals or entities managing retirement programs for local governments in Tennessee, referred to as "fiduciaries," to make investment decisions solely based on financial considerations, explicitly excluding environmental, social, and governance (ESG) factors, with the goal of maximizing long-term shareholder value for the program's beneficiaries. Fiduciaries must conduct and document a detailed "economic analysis" to justify any vote on shareholder proposals that deviates from the recommendation of a company's board of directors, demonstrating that the vote is for financial reasons and not influenced by ESG interests. The bill also introduces new definitions for terms like "economic analysis," "fiduciary," and "proxy advisory firm" (a company that provides advice on how to vote shares) and prohibits proxy advisory firms from providing advice if they have conflicts of interest or if their recommendations undermine independent boards of directors, particularly concerning business disputes or executive compensation.

Government Affairs

https://wapp.capitol.tn.gov/apps/Billinfo/Default?BillNumber=HB2476&ga=114