This bill establishes new regulations regarding the voting responsibilities of fiduciaries managing pension benefit plans for public entities in Iowa. It mandates that fiduciaries must vote all shares solely in the best economic interest of the plan participants and beneficiaries, with a rebuttable presumption that votes aligning with the recommendations of the board of directors are in their best interest. The bill prohibits fiduciaries from voting based on environmental, social, or ideological goals unless it can be demonstrated through an economic analysis that such a vote serves the best interests of the participants. Additionally, fiduciaries are required to report any votes inconsistent with board recommendations and the economic analyses supporting those votes to the treasurer of state.

The bill also imposes requirements on proxy advisory firms, stating they cannot provide voting advice on shareholder-sponsored proposals unless it is based solely on the best economic interests of the shareholders. It allows consumers to request economic analyses related to fiduciary votes and mandates that the investment companies or plans respond within 90 days. The attorney general is granted enforcement authority, including the ability to investigate violations and seek civil penalties, which are capped at $1,000 per violation. The bill includes conforming changes to existing laws to integrate these new provisions.

Statutes affected:
Introduced: 97D.5, 97A.8, 97B.7A, 262.14