HB0080

Failed

Stop ESG-State funds fiduciary duty act.

Require investment managers of state funds to prioritize financial returns and prohibit proxy voting based on environmental, social or governance factors.

Full legal title

AN ACT relating to the administration of the government; specifying requirements for the hiring and retention of investment managers, trustees and fiduciaries who invest state funds as specified; specifying proxy voting requirements for investment managers, trustees and fiduciaries who invest state funds; providing definitions; making conforming amendments; specifying applicability; and providing for an effective date.

Budget

Sponsor:

Co-sponsors: Representative(s) Angelos, Banks, Bear, Haroldson, Neiman, Singh, Tarver, Webb, Winter, Senator(s) Steinmetz

View on wyoleg.gov Introduced Text (PDF)Digest (PDF)Engrossed (PDF)Fiscal Note (PDF)

What does this bill do?

Requires investment entities managing Wyoming state funds to base investment decisions solely on financial factors and prohibits consideration of environmental, social, and ideological objectives.

Defines 'financial' to exclude actions taken for social, political, or ideological purposes, including efforts to reduce greenhouse gas emissions, alter corporate board composition based on protected characteristics, divest from environmental non-compliance, expand abortion or gender transition services, or divest from firearms companies, except as required by law. (W.S. 9-4-722(a)(iii))
Requires each investment entity to discharge investment duties solely in the financial interest of beneficiaries for the exclusive purposes of providing financial benefits, defraying reasonable administrative expenses, and meeting other law-required purposes. (W.S. 9-4-722(b))
Establishes that all fiduciaries, custodians, and persons retained to invest state funds must consider only financial factors when discharging duties related to state fund investments. (W.S. 9-4-722(c), W.S. 9-4-722(d))
Requires that proxy voting authority be granted only to persons who commit in writing to follow guidelines based solely on financial factors, and prohibits delegating voting authority to external parties unless no economically practicable alternative exists. (W.S. 9-4-722(f)(i))
Restricts investment of state funds to fiduciaries who have a practice of and commit in writing to engage with portfolio companies and vote shares based solely on financial factors. (W.S. 9-4-722(f)(ii))
Prohibits following proxy advisor recommendations unless the advisor commits in writing to vote based solely on financial factors. (W.S. 9-4-722(f)(iii))
Requires investment entities to tabulate and report all proxy votes annually by September 1, including vote captions, the plan's vote, management recommendation, and proxy advisor recommendations if applicable, with reports posted on the entity's website. (W.S. 9-4-722(g))
Authorizes the attorney general to enforce violations by requiring violators to file written statements and provide relevant information.