A bill for an act relating to the consideration of nonfinancial factors in providing financial services, including actions regarding the economic interest of enterprise shareholders and participants in and beneficiaries of public pension benefit plans, and providing penalties.

HF 721 requires pension fund fiduciaries (like managers of public retirement systems) to prioritize the financial returns of plan participants over non-financial considerations, such as environmental or social goals. It defines "best economic interest" as maximizing risk-adjusted investment returns and prohibits financial institutions from discriminating against customers based on protected speech, climate policy choices, or diversity initiatives. Fiduciaries must provide documented economic analyses demonstrating how voting against board recommendations on shareholder proposals aligns with financial interests. The bill specifically targets large financial institutions ($100B+ assets) and public pension plans in Iowa.