The proposed bill would amend current statutes by adding new definitions and requirements related to public pension benefit plans and their interactions with proxy advisory firms. Specifically, it introduces definitions for "plan," "proxy advisory firm," and "sole economic interest," clarifying the obligations of these entities. The bill stipulates that a public entity's retirement plan cannot enter into an agreement with a proxy advisory firm unless the firm acknowledges its duty to vote all shares in the sole economic interest of the plan's participants and beneficiaries.

Additionally, the bill removes existing provisions that outline requirements and prohibitions for fiduciaries, proxy advisory firms, and pension benefit plans regarding proxy voting. It also eliminates the Attorney General's authority to enforce these requirements and seek civil penalties for violations, as well as consumer disclosure and proxy voting reporting requirements. Overall, the bill aims to streamline the relationship between public pension plans and proxy advisory firms while ensuring that the economic interests of plan participants are prioritized.