Authored by Senator Bryan Hughes, SB 312 codifies a “Texas policy” for proxy voting and for all investment activities to ensure policies are consistently applied across all public retirement systems in Texas pensions. SB 312 aims to ensure that public retirement systems across the state are managing investments and making decisions based solely on financial factors. By eliminating the influence of political activism in investment and proxy voting decisions and requiring transparency, retirement funds can better maximize returns for participants and beneficiaries.
SB 312 expands existing fiduciary standards in the Texas Gov’t Code and applies to not only the governing board of state pension funds but to investment managers and proxy advisors acting on behalf of the retirement systems as well. SB 312 seeks to set clear and uniform standards for the fiduciary responsibility of pensions and their chosen asset managers.