Public Funds and Financing - As enacted, revises law relative to pension plans and proxy advisors. - Amends TCA Title 9, Chapter 4.

SB 2641 requires local retirement programs (including city, county, and school district pensions not in Tennessee's main TCRS system) to make investment decisions based **solely on financial factors**, excluding environmental, social, or governance (ESG) considerations. It mandates that fiduciaries (like fund managers) conducting an economic analysis to justify voting against a company's board recommendation on shareholder proposals. The bill creates a presumption that voting with a board’s recommendation is financially motivated, while banning votes prioritizing ESG interests unless proven financially beneficial through documented analysis. This applies to all local government retirement programs managing assets for employees’ benefits.