House Bill 2476 amends Tennessee Code Annotated, Title 9, Chapter 4, to enhance regulations governing investments by political subdivisions and pension plans. The bill expands the definition of investment authority to include local governmental entities alongside the state treasurer and introduces provisions for plans established by political subdivisions that do not participate in the Tennessee consolidated retirement system. It also establishes definitions for key terms such as "economic analysis," "fiduciary," and "proxy advisory firm," which clarify the responsibilities of fiduciaries managing pension plans.

Additionally, the bill outlines fiduciary voting responsibilities, mandating that votes be cast for financial reasons that benefit beneficiaries while maximizing long-term shareholder value. It establishes a rebuttable presumption that fiduciaries will vote in line with board recommendations, provided the board has a majority of independent directors. The legislation requires fiduciaries to conduct economic analyses for votes that deviate from board recommendations and to report annually to the state treasurer or the political subdivision's chief legislative body. It also imposes restrictions on proxy advisory firms, preventing them from providing voting advice in cases of conflict of interest and requiring them to offer financial analyses for recommendations that differ from management's suggestions. The bill is set to take effect on July 1, 2026, promoting transparency and accountability in pension plan management and proxy voting practices.

Statutes affected:
Introduced: 9-4-1401(3), 9-4-1401, 9-4-1402
Amended with SA0871 -- 04/13/2026: 9-4-1401(3), 9-4-1401, 9-4-1402