OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
S.B. 6 Bill Analysis
135th General Assembly
Click here for S.B. 6’s Fiscal Note
Version: As Reported by House Financial Institutions
Primary Sponsor: Sen. Schuring
Effective date:
Chris Edwards, Attorney
SUMMARY
▪ Prohibits the state retirement system boards, Administrator of Workers’ Compensation,
and boards of trustees of state institutions of higher education from making an
investment decision with the primary purpose of influencing any social or environmental
policy or the governance of any corporation (ESG).
▪ Requires the state retirement system boards, Administrator, and boards of trustees of
state institutions of higher education to make investment decisions solely to maximize
the return on investments.
▪ Specifies that a board of trustees is not required to accept a bequest made by a decedent
to an endowment because the bequest specifically requests that the donation be used
for the primary purpose of influencing ESG.
▪ Requires, if a board of trustees accepts such a bequest, the board of trustees to comply
with any conditions of that bequest regarding that purpose.
▪ Encourages a state retirement system, if the system offers a defined contribution plan, to
offer multiple investment choices for members who are under that plan.
DETAILED ANALYSIS
Environmental, social, and corporate governance policies
The bill prohibits the state retirement system boards, state institutions of higher
education boards of trustees (subject to the exception described below), and Administrator of
Workers’ Compensation from making an investment decision with the primary purpose of
influencing any social or environmental policy or the governance of any corporation (ESG), and
specifically prohibits the Administrator from investing funds with a primary purpose of ESG. It
additionally prohibits the boards, boards of trustees, Bureau of Workers’ Compensation (BWC)
Board of Directors, and Administrator from adopting or promoting a policy under which the
December 6, 2024
Office of Research and Drafting LSC Legislative Budget Office
respective board, board of trustees, or Administrator makes investment decisions with the
primary purpose of ESG.1 The bill does not define ESG. Thus, it is not clear how to determine
whether an investment decision could influence social or environmental policy or the governance
of a corporation under the bill.2
Fiduciary duties
The bill requires the retirement boards, state institutions of higher education boards of
trustees, Administrator, and other workers’ compensation system fiduciaries to make investment
decisions with the sole purpose of maximizing the return on investments in accordance with their
fiduciary duties under continuing law.3 Additionally, the Administrator and other fiduciaries must
make investment decisions that are consistent with any of their other fiduciary responsibilities
under the Workers’ Compensation Law.4 Under continuing law, each state retirement system
board has full authority to invest the system’s funds, and the board and other fiduciaries must
discharge their duties with respect to the funds solely in the interest of the system’s participants
and beneficiaries. A board of trustees may invest money held in trust for the benefit of a state
institution of higher education as a portion of the holdings in its endowment portfolio. The
Administrator may invest the surplus and reserve of the State Insurance Fund as well as other
funds of the workers’ compensation system.
Continuing law requires the boards, boards of trustees, and Administrator to make
investment decisions following the “prudent person standard,” which requires each board, board
of trustees, and the Administrator to act:
[W]ith care, skill, prudence, and diligence under the
circumstances then prevailing that a prudent person acting in a like
capacity and familiar with these matters would use in the conduct
of an enterprise of a like character and with like aims.
The boards, boards of trustees for some investments, and the Administrator also must diversify
the investments so as to minimize the risk of large losses, unless under the circumstances it is
clearly prudent not to do so.
1 R.C. 145.11, 742.11, 3307.15, 3309.15, 3345.161, 4123.44, 4123.442, and 5505.06.
2See Managing ESG Data and Rating Risk, which may be accessed by conducting a keyword “managing
ESG data and rating risk” search on the Harvard Law School Forum on Corporate Governance website:
corpgov.law.harvard.edu.
3 R.C. 145.11(A), 742.11(A), 3307.15(A), 3309.15(A), 3345.161(A), 4123.44, and 5505.06(A), by reference
to R.C. 3345.05, 3354.10, 3357.10, and 3358.06, not in the bill.
4 R.C. 4123.44, by reference to R.C. chapters 4121, 4123, 4127, and 4131.
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The Administrator also is specifically prohibited from investing funds in certain types of
investments, such as coins and antiques, as well as any other class of investments specifically
prohibited by the BWC Board of Directors.5
State institution of higher education endowments
The bill includes an exception to the prohibition described above against a board of
trustees making investment decisions for the primary purpose of influencing ESG. Beginning on
the bill’s effective date, a board of trustees is not required to accept a bequest made by a
decedent because the bequest specifically requests that the donation be used with the primary
purpose of influencing ESG. The board, however, must comply with any conditions of a bequest
regarding that purpose if the board accepts such a bequest.6
Defined contribution plan investment options
The bill encourages a state retirement system to offer multiple investment choices for
members who are participating in a defined contribution plan, if the system offers such a plan.7
Under a defined contribution plan, members choose the investments into which their retirement
system contributions are placed, and the investment earnings of the contributions determine the
amount of the benefit the member receives.8 The Public Employees Retirement System and State
Teachers Retirement System currently offer a defined contribution plan.9 The School Employees
Retirement System is statutorily authorized to establish a defined contribution plan, but has
chosen not to do so.10
5R.C. 145.11, 742.11, 3307.15, 3309.15, 3345.16, 4123.44, 4123.442, and 5505.06 and R.C. 1715.52 and
3345.05, not in the bill.
6 R.C. 3345.161(C).
7 Section 3.
8 Pensions 101, which may be accessed by conducting a keyword “Pensions 101” search on the Public
Employees Retirement System website: opers.org, and Plan Options, which may be accessed by conducting a
keyword “Plan options” search on the State Teachers Retirement System website: strsoh.org.
9 R.C. 145.80 to 145.98 and 3307.81 to 3307.89, not in the bill.
10 R.C. 3309.81 to 3309.98, not in the bill.
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As Reported by House Financial Institutions
Office of Research and Drafting LSC Legislative Budget Office
HISTORY
Action Date
Introduced 01-11-23
Reported, S. Finance 04-19-23
Passed Senate (26-7) 05-10-23
Reported, H. Financial Institutions 12-04-24
ANSN0006RH-135/ts
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As Reported by House Financial Institutions


Statutes affected:
As Introduced: 145.11, 742.11, 3307.15, 3309.15, 3345.16, 4123.44, 4123.442, 5505.06
As Reported By Senate Committee: 145.11, 742.11, 3307.15, 3309.15, 3345.16, 4123.44, 4123.442, 5505.06
As Passed By Senate: 145.11, 742.11, 3307.15, 3309.15, 3345.16, 4123.44, 4123.442, 5505.06