Senate Bill No. by Senator Hodges aims to amend the regulations governing fiduciaries of public retirement systems by mandating that they make investment decisions based solely on financial factors. The bill introduces new legal language under R.S. 11:263.1, which specifies that third-party service providers must disregard any factors related to environmental, social, political, or ideological goals when managing retirement plan investments. Additionally, the bill outlines the responsibilities of fiduciaries regarding proxy voting, stating that proxy votes must also be cast based solely on financial considerations. It prohibits the sale of shareholder proxy rights and requires annual reporting of proxy votes related to publicly managed assets.

The enforcement of these provisions is vested in the attorney general, who is authorized to investigate potential violations and seek damages from service providers that fail to comply with the new regulations. The damages awarded can be up to three times the amount paid to the service provider by the retirement system, fund, or plan. The bill is set to take effect on June 30, 2025, if not vetoed by the governor.