TX SB312

Requires public retirement system governing bodies and investment managers to discharge duties solely in the financial interest of participants and beneficiaries, taking into account only financial factors when making investment decisions

Prohibits using retirement system assets to further social, political, or ideological interests, and mandates that all proxy votes be cast solely based on financial factors

Requires contracts with investment managers and proxy advisors to include provisions ensuring they only consider financial factors and do not pursue non-financial interests when investing assets or advising on proxy voting

Establishes proxy voting transparency requirements, including public notice at least 24 hours before votes are cast and annual reporting of all proxy votes to the State Pension Review Board, which must post reports publicly

Mandates annual reporting to the State Pension Review Board for retirement systems with more than $100 million in assets, detailing investment relationships, fees, and returns for all funds and investment managers

Takes effect September 1, 2025, and applies only to contracts entered into on or after that date