US HB4098

Prohibits proxy advisory firms from providing voting advice if they have conflicts of interest, including offering consulting services to companies they rate or modifying recommendations based on whether companies subscribe to their services

Bars proxy advisory firms from giving voting advice while simultaneously providing stewardship or engagement services to shareholder proponents related to the same matter

Prohibits proxy advisory firms from being members of organizations that support shareholder-sponsored proposals on which they are providing voting advice

Authorizes the SEC to impose civil penalties on proxy advisory firms and individuals who cause violations, following notice and hearing procedures under existing Securities Exchange Act standards

Defines "proxy advisory firm" as any person who markets expertise in proxy voting advice separately from other investment advice and sells such advice for a fee