This amendment modifies state fund investment requirements to strengthen pecuniary-only investment standards, expand proxy voting disclosure and fiduciary obligations, and add public transparency requirements.
- Requires investment entities to act 'solely' based on best financial interests of beneficiaries, removing discretion in the standard of care. (Page 2, line 12)
- Removes the word 'best' from the financial interest standard, changing it from 'best financial interest' to 'financial interest'. (Page 2, line 13)
- Deletes the remainder of line 9 after 'interests.' to remove language about pecuniary factors. (Page 3, line 9)
- Deletes lines 10-12 entirely, removing provisions about fiduciary decision requirements. (Page 3, lines 10-12)
- Changes 'Each investment entity shall avoid nonpecuniary' to 'No investment entity shall act based on nonpecuniary', strengthening the prohibition against considering non-pecuniary factors. (Page 3, line 17)
- Revises language regarding fiduciary responsibilities to read 'factors, as doing so' instead of previous text through 'that'. (Page 3, lines 17-18)
- Changes 'and' to 'or' in the list of concerns about nonpecuniary factors. (Page 3, line 19)
- Requires investment entities to respond 'in writing after final determination' when addressing nonpecuniary actions, adding specificity to response obligations. (Page 4, line 5)
- Removes 'in a' from language about how investment entities respond to nonpecuniary conduct. (Page 4, line 6)
- Changes 'nonpecuniary manner' to 'based on nonpecuniary factors because', clarifying the basis for required responses. (Page 4, lines 7-8)
- Corrects spelling from 'insure' to 'ensure' in provisions about fiduciary compliance. (Page 4, line 13)
- Expands the scope of attestation requirements to include investment partners, managers, and vendors in addition to external managers. (Page 5, line 1)
- Adds fiduciary obligations to investment partners, managers, and vendors by referencing the same obligations as investment entities, creating broader compliance requirements. (Page 5, lines 6-7)
- Clarifies that the one basis point authorization is calculated 'of assets under management', providing specificity on how the limit is measured. (Page 6, line 8)
- Adds new subsection (g) requiring the state treasurer to publish all proxy votes cast on behalf of the state on the official website, including vote date, matter description, and explanation, with records maintained for at least five years. (Page 6, after line 14)
- Corrects reference from 'Advisor's Act' to 'Advisers Act' to reflect proper naming of the Investment Advisers Act of 1940. (Page 11, line 2)
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