The proposed bill, if enacted, would amend current statutes related to the management of public funds by introducing new definitions and requirements for fiduciaries. Specifically, it would require fiduciaries to act solely in the interest of plan participants and beneficiaries, focusing exclusively on pecuniary factors when making investment decisions. This includes prohibiting the consideration of nonpecuniary factors, such as environmental or social goals, in investment evaluations. Additionally, the bill would define key terms such as "fiduciary," "plan," "pecuniary factor," and "nonpecuniary factor," thereby clarifying the responsibilities and limitations placed on fiduciaries.

Furthermore, the bill mandates that the State Treasurer maintain and publicly post a current list of state investments and investment managers, ensuring transparency and accountability. It also stipulates that all state investments must be made in the sole interest of the taxpayer, with an emphasis on avoiding unnecessary risks and nonpecuniary benefits. The voting of shares held by plans would be restricted to the governmental entity that maintains the plan, and any proxy voting authority granted must align with the fiduciary's obligation to prioritize pecuniary interests. Overall, these updates aim to reinforce a strict fiduciary standard focused on financial returns and risk management.

Statutes affected:
Introduced Version: 35-320
Senate Engrossed Version: 35-320