ID S1405

Adds Section 67-2345 to Idaho Code requiring public entities using investment agents to apply the Idaho Uniform Prudent Investor Act and prohibits considering environmental, social, or governance characteristics in a manner that could override the prudent investor rule.

Permits public entities serving as fiduciaries to offer environmental, social, and governance preferred investment alternatives, but such investments shall not be required and sufficient alternative options must also be provided.

Requires investment agents to notify public entities if they adopt or revise policies related to disfavored investments applicable to the entity's investment.

Establishes that all proxies for public entities belong to that entity; if voting proxies are delegated to investment agents, they must be exercised in the best interests and exclusive benefit of the public entity or beneficiaries, with quarterly posting or availability through public records requests.

Defines "disfavored investments" as investments or limitations identified as against Idaho's public policy by statute, concurrent resolution, or executive order; effective July 1, 2022.