SB 183: Kentucky Bans Proxy Advisor Proposals Based on Nonpecuniary Interests

March 27, 2025

Summary

SB 183 amends HB 236--a law requiring state investments to be based solely on pecuniary factors--to restrict proxy vote guidance, too.  Proxy advisors' proposals must recommend votes consistent with the board of trustees' policy to invest the retirement system funds "solely in the interest of the members and beneficiaries" and not to consider nonpecuniary environmental, social, political or ideological interests.  The proxy advisor may be required to prepare an economic analysis to explain why the proposal is consistent with the retirement system's investment policy.  The law defines "proxy adviser" as any person who provides "advice, research, analysis, ratings, or recommendations specifically with respect to proxy voting," and has a contract with "the board of trustees of the retirement system to receive compensation for those purposes."

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