Amends TCA Title 9, Chapter 4.
ON MARCH 13, 2023, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 955, AS AMENDED.<br /> <br /> AMENDMENT #1 rewrites this bill to require the department of treasury investment division staff, under the supervision of the state treasurer, to invest, reinvest, manage, and select investment options for program assets for financial reasons, excluding environmental, social, and governance interests that may not be material to the financial analysis of the investment, for the exclusive benefit of the beneficiaries of the programs while maximizing long-term shareholder value. This amendment defines a "program" as any of the following that are established by law and for which the state treasurer has, or has been delegated, investment authority, oversight, and responsibility: <br /> <br /> (1) A trust fund; <br /> <br /> (2) An endowment fund; <br /> <br /> (3) Deferred or tax-sheltered compensation plan or plans, including profit sharing or salary reduction plans; <br /> <br /> (4) Programs under the Tennessee College Savings Trust Act; and <br /> <br /> (5) Programs under The Achieving a Better Life Experience (ABLE) Act.<br /> <br /> This amendment further provides the following:<br /> <br /> (1) The state treasurer has the sole authority to exercise, in person or by proxy, all voting rights with respect to securities held by a program and to give general or special proxies or powers of attorney with or without power of substitution;<br /> <br /> (2) The authority conferred by (1) above must be exercised for financial reasons, impartially and solely in the interests of the beneficiaries of the program as determined from the purposes, terms, distribution requirements, and other circumstances of the program, and the terms of the respective program's investment and proxy voting policies or guidelines;<br /> <br /> (3) The state treasurer may delegate the authority conferred by (1) above, in whole or in part, to the department of treasury staff, which authority includes, but is not limited to, conducting research, providing due diligence, and casting votes;<br /> <br /> (4) The state treasurer has final authority over an investment or proxy voting decision for a program;<br /> <br /> (5) The state treasurer may make and enter into contracts, agreements, and other instruments with an individual or entity to effectuate this bill;<br /> <br /> (6) In cases where the interest of the state treasurer requires additional legal counsel to effectuate this bill and to advise on issues concerning the state treasurer's fiduciary obligations and responsibilities, the state treasurer, with the approval of the attorney general and reporter, may contract with additional counsel; and<br /> <br /> (7) This bill applies to investments made on or after July 1, 2023.<br />
ON MARCH 13, 2023, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 955, AS AMENDED.<br /> <br /> AMENDMENT #1 rewrites this bill to require the department of treasury investment division staff, under the supervision of the state treasurer, to invest, reinvest, manage, and select investment options for program assets for financial reasons, excluding environmental, social, and governance interests that may not be material to the financial analysis of the investment, for the exclusive benefit of the beneficiaries of the programs while maximizing long-term shareholder value. This amendment defines a "program" as any of the following that are established by law and for which the state treasurer has, or has been delegated, investment authority, oversight, and responsibility: <br /> <br /> (1) A trust fund; <br /> <br /> (2) An endowment fund; <br /> <br /> (3) Deferred or tax-sheltered compensation plan or plans, including profit sharing or salary reduction plans; <br /> <br /> (4) Programs under the Tennessee College Savings Trust Act; and <br /> <br /> (5) Programs under The Achieving a Better Life Experience (ABLE) Act.<br /> <br /> This amendment further provides the following:<br /> <br /> (1) The state treasurer has the sole authority to exercise, in person or by proxy, all voting rights with respect to securities held by a program and to give general or special proxies or powers of attorney with or without power of substitution;<br /> <br /> (2) The authority conferred by (1) above must be exercised for financial reasons, impartially and solely in the interests of the beneficiaries of the program as determined from the purposes, terms, distribution requirements, and other circumstances of the program, and the terms of the respective program's investment and proxy voting policies or guidelines;<br /> <br /> (3) The state treasurer may delegate the authority conferred by (1) above, in whole or in part, to the department of treasury staff, which authority includes, but is not limited to, conducting research, providing due diligence, and casting votes;<br /> <br /> (4) The state treasurer has final authority over an investment or proxy voting decision for a program;<br /> <br /> (5) The state treasurer may make and enter into contracts, agreements, and other instruments with an individual or entity to effectuate this bill;<br /> <br /> (6) In cases where the interest of the state treasurer requires additional legal counsel to effectuate this bill and to advise on issues concerning the state treasurer's fiduciary obligations and responsibilities, the state treasurer, with the approval of the attorney general and reporter, may contract with additional counsel; and<br /> <br /> (7) This bill applies to investments made on or after July 1, 2023.<br />
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