Public Entity Investments, Fiduciaries and Proxy Advisors (1056XD) - Attorney General

This bill requires public pension fund fiduciaries (managers) to vote shares in the "best economic interest" of plan participants and beneficiaries, meaning maximizing risk-adjusted returns. Fiduciaries must conduct and document economic analyses if voting against a board's recommendation on shareholder proposals, and annually report all such votes to the state treasurer. Proxy advisory firms advising on proposals for state-regulated enterprises must base recommendations solely on economic interests, not environmental or social goals. The law mandates regular back-testing of economic models and allows courts to award fees to prevailing parties in enforcement actions.