US HB2358

Amends the Investment Advisers Act of 1940 to require brokers, dealers, and investment advisers to base customer recommendations on pecuniary (financial) factors only, unless the customer provides written informed consent to consider non-pecuniary factors such as ESG criteria

Requires disclosure of expected pecuniary effects over a customer-selected period (up to 3 years) when non-pecuniary factors are considered, and mandates comparison to a benchmark index showing actual performance including all fees and costs

Directs the SEC to conduct a study within 1 year on climate change and environmental disclosures in the municipal bond market, examining disclosure frequency, consistency, standards used, and investor reliance on such disclosures

Requires the SEC to study the effectiveness of "pay-to-play" rules (MSRB Rule G-38 and SEC Rule 206(4)-5) that restrict political contributions by municipal securities dealers, including impacts on small, minority-owned, and women-owned businesses

SEC must issue implementing rules within 12 months, with the pecuniary factor requirements applying to broker/dealer/adviser actions beginning 12 months after enactment