Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Pension Management topic
No spam. Unsubscribe anytime.
Committee approves language clarifying pension fiduciary duties and proxy voting
Summary
A bill clarifying fiduciary duties for state pension funds and restricting proxy voting for non-pecuniary political or ideological aims passed committee on a 12-3 vote; sponsors said the measure requires proxy managers to commit in writing to policies aligned with the funds' financial purpose.
The committee advanced legislation that clarifies fiduciary obligations for state pension systems and limits the use of proxy voting services for political or ideological ends, passing the measure 12-3.
Representative Justin LePak, presenting House Bill 11 70, said the bill clarifies the role of fiduciaries and requires proxy services hired by state pension funds to provide written commitments about how they will vote proxies. "It addresses a fiduciary's responsibility vis a vis our state pensions," LePak said.
Lawmakers questioned whether current proxy managers already conform to prudent-investor standards and whether the bill would unnecessarily constrain investment flexibility. "Do you believe any of our state systems are currently advocating for voting proxies for any other reason but pecuniary factors?" Representative Pack asked. LePak replied that existing laws and recent litigation show areas of disagreement and that the bill would codify expectations.
Sponsor comments said the bill does not categorically ban investments in particular sectors, including energy or green technologies; instead, it allows consideration of environmental, social, or governance matters only when those factors are material under generally accepted investment theories.
After brief questioning and no floor debate in committee, members adopted a do-pass motion. The clerk recorded the vote as 12 yes and 3 no, and the bill was reported as due passed and moved on to the House floor.
