Senate Bill No. by Senator Hodges aims to amend the regulations governing fiduciaries of public retirement systems in Louisiana 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 explicitly states that third-party service providers must not consider 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, including the requirement to report all proxy votes related to publicly managed assets annually.

The enforcement of these provisions is vested in the attorney general, who is authorized to investigate and take action against service providers that violate the new regulations. If a violation occurs, the attorney general can seek damages from the service provider, which may amount to three times the fees paid for their services. The bill is set to take effect on June 30, 2025, and aims to ensure that fiduciaries prioritize financial returns for participants and beneficiaries of public retirement systems.