The bill prohibits state money from being used to further certain social, political, or ideological interests beyond what controlling state and federal law require. Sections 1 to 3 of the bill apply this prohibition to the public employees' retirement association (PERA) by requiring PERA to make investments solely on financial factors and prohibiting PERA from investing in an entity with a stated purpose to further certain social, political, or ideological interests beyond what federal and state law require (nonfinancial commitment). Section 1 also:
- Requires that PERA ensure that a designated agent commits to following guidelines that match PERA's obligation to act solely on financial factors prior to PERA entrusting member funds to the designated agent;
- Requires that a designated agent ensure that a proxy advisor or other service provider has committed to following guidelines that match PERA's obligation to act solely on financial factors prior to the designated agent following a recommendation of the proxy advisor or service provider; and
- Gives the attorney general the authority to enforce these investment requirements.
(Note: This summary applies to this bill as introduced.)