Assembly Bill 767 introduces new regulations for the State of Wisconsin Investment Board (SWIB) regarding the management and voting of securities ownership interests for the Wisconsin Retirement System (WRS) and the retirement systems of the City and County of Milwaukee. The bill mandates that SWIB must exercise its voting authority solely in the economic interest of WRS participants, aiming to maximize risk-adjusted investment returns. It establishes a presumption of compliance if SWIB votes in line with the recommendations of independent directors on the issuer's board. If SWIB votes contrary to these recommendations, it must conduct or obtain an economic analysis demonstrating that its vote serves the sole economic interest of WRS participants. Additionally, the bill prohibits SWIB from voting in ways that prioritize environmental, social, or ideological goals over the economic interests of participants.

The bill also imposes similar requirements on the retirement systems of Milwaukee County and the City of Milwaukee, ensuring they adhere to the same standards as SWIB. It allows for enforcement by the attorney general, state treasurer, and district attorney, and permits WRS participants to take civil action against SWIB or the respective retirement system boards for violations. Furthermore, if SWIB violates the provisions of the bill, it must reduce its assessment against WRS assets by a specified percentage. The bill includes provisions for reporting and transparency, requiring SWIB to disclose information related to its voting practices and economic analyses in its annual reports.

Statutes affected:
Bill Text: 25.15(2)(intro.), 25.15