The proposed bill would amend current statutes by introducing new requirements for fiduciaries managing public funds, specifically emphasizing the need to consider only pecuniary factors when making investment decisions. The bill would insert definitions for "fiduciary," "plan," "pecuniary factor," and "nonpecuniary factor," clarifying the roles and responsibilities of fiduciaries in relation to public funds. It would also mandate that fiduciaries discharge their duties solely in the interest of plan participants and beneficiaries, prohibiting the consideration of nonpecuniary factors in investment evaluations.

Additionally, the bill would require the State Treasurer to maintain and publicly post a current list of state investments and investment managers, ensuring transparency and accountability. It would restrict voting rights on shares held by plans to the governmental entities that establish or maintain them, disallowing proxy voting by external parties unless aligned with the fiduciary's obligation to act based solely on pecuniary interests. Overall, the bill aims to reinforce a focus on financial returns and minimize the influence of nonpecuniary considerations in the management of public funds.

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