This bill establishes new regulations regarding the voting responsibilities of fiduciaries managing public pension benefit plans in Iowa, ensuring that all votes are cast solely in the best economic interest of the plan participants and beneficiaries. It introduces a rebuttable presumption that a fiduciary's vote aligns with this interest if it follows the recommendation of the board of directors of the issuer, provided that the board has a majority of independent directors. Additionally, fiduciaries are prohibited from voting based on environmental, social, or ideological goals unless an economic analysis demonstrates that such a vote is in the best interest of the participants. Fiduciaries are also required to report any votes inconsistent with board recommendations and the economic analyses supporting those votes to the treasurer of state.

The bill further regulates proxy advisory firms, mandating that they provide voting advice based solely on the best economic interests of shareholders and requiring annual disclosures of any votes that deviate from board recommendations. Consumers, defined as residents with interests in investment companies or pension plans, are granted the right to request economic analyses related to fiduciary votes if they suspect non-compliance with the bill's provisions. The attorney general is empowered to enforce these regulations, investigate potential violations, and seek civil penalties for non-compliance, with each share not voted in the best interest constituting a separate violation. The bill also includes conforming amendments to existing laws to integrate these new provisions.

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