TN HB2476

Expands investment oversight authority to include local governmental entities and political subdivision retirement plans not participating in the Tennessee Consolidated Retirement System

Requires fiduciaries to invest and vote shares exclusively for financial reasons to benefit beneficiaries while maximizing long-term shareholder value, prohibiting votes that subordinate financial interests to environmental, social, and governance (ESG) considerations

Creates a rebuttable presumption that fiduciary votes are for financial reasons when following the recommendation of an issuer's board of directors with a majority of independent directors

Mandates annual reporting to the state treasurer or local legislative body on votes inconsistent with board recommendations, including documented economic analyses justifying such votes, with certification by the fiduciary's CEO and CFO

Prohibits agreements with proxy advisory firms that have conflicts of interest, including those receiving consulting fees from share issuers or shareholder proposal sponsors, or whose recommendations contradict independent board decisions on litigation or executive compensation