The proposed bill, if enacted, would amend current statutes related to the management of public funds by introducing new definitions and requirements for fiduciaries. It would require fiduciaries to act solely in the interest of plan participants and beneficiaries, focusing exclusively on pecuniary factors when evaluating investments. The bill would also define key terms such as "fiduciary," "plan," "pecuniary factor," and "nonpecuniary factor," establishing clear guidelines for fiduciary responsibilities and prohibiting the consideration of nonpecuniary factors in investment decisions.

Additionally, 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 restricts voting rights associated with plan shares to the governmental entity that maintains the plan, prohibiting proxy voting by external parties unless aligned with the fiduciary's obligation to prioritize pecuniary interests. Overall, the bill aims to reinforce a strict fiduciary standard focused on financial returns, eliminating the influence of nonpecuniary considerations in public fund management.

Statutes affected:
Introduced Version: 35-320