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SB 183 Kentucky Senate · 2025 Regular Session

AN ACT relating to the fiduciary duties owed to the state-administered retirement systems.

Summary
Amend KRS 21.450, 61.650, 78.790, and 161.430 relating to the fiduciary duties owed to the state-administered retirement systems to define "shareholder-sponsored proposal" and "economic analysis"; require a proxy adviser under contract with a state-administered retirement system to conduct and document an economic analysis prior to voting on or recommending a vote on a shareholder-sponsored proposal that is inconsistent with the recommendation of the board of directors of the issuer of shares in order to demonstrate that a vote against management's recommendation is solely in the interest of the retirement plan members and beneficiaries; make technical corrections.
Bill status signed all 5 stages cleared
Introduction
Feb 2025
Committee Review
Mar 2025
Senate Passage
Mar 2025
House Passage
Mar 2025
Signed into Law
Mar 2025
Introduced Feb 14, 2025 Signed Mar 27, 2025
Maddy AI version diff · 1 comparison

What changed between versions

Introduced → Current/Final · 4 edits
MODERATE
This bill updates Kentucky's retirement system fiduciary duty laws to clarify how investment decisions should be made. The changes add specific definitions for 'proxy adviser' and refine how shareholder proposals are evaluated, emphasizing financial risk and return over nonpecuniary interests like environmental or social concerns.
Scope change
The bill's scope remains focused on state-administered retirement systems, but the definitions and evaluation criteria for investment decisions have been expanded and clarified.
DEFINITION

Added a new definition for 'proxy adviser' to clarify who provides voting advice on shareholder proposals.

REQUIREMENT

Modified the definition of 'nonpecuniary interest' to explicitly list environmental, social, political, or ideological interests that lack a direct financial connection to investment returns.

Added requirements for 'economic analysis' of shareholder-sponsored proposals, including assessment of long and short-term economic impacts on retirement fund returns.

Modified voting requirements for proxy advisers to specify conditions under which their recommendations align with board of directors' decisions.

Floor votes · Senate Mar 4, 2025

How they voted

36–7
Passed
Total votes 43
Mar 4, 2025
D Democratic6
6 Nay
100% Nay
R Republican37
36 Yea 1 Nay
97% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
33
Key actions
11
Committee
8
Mar 27, 2025
Lower · Passed
enrolled, signed by Speaker of the House
lower
Mar 27, 2025
Upper · Passed
enrolled, signed by President of the Senate
upper
Mar 27, 2025
Upper · Passed
passed 72-17
upper
Mar 27, 2025
Vetoed
posted for consideration of Governor's veto
upper
Mar 27, 2025
Committee
to Rules (H)
lower
Mar 27, 2025
Upper · Passed
passed 31-7
upper
Mar 27, 2025
Vetoed
veto overridden
upper
Mar 27, 2025
Vetoed
posted for passage for consideration of Governor's veto
upper
Mar 27, 2025
Committee
to Rules (S)
upper
Mar 26, 2025
Vetoed
Vetoed
upper
Mar 14, 2025
Lower · Passed
enrolled, signed by Speaker of the House
lower
Mar 14, 2025
Upper · Passed
enrolled, signed by President of the Senate
upper
Mar 14, 2025
Upper · Passed
3rd reading, passed 83-6
upper
Mar 12, 2025
Upper · Passed
reported favorably, 1st reading, to Calendar
upper
Mar 7, 2025
Committee
to Banking & Insurance (H)
lower
Mar 5, 2025
Committee
to Committee on Committees (H)
lower
Mar 4, 2025
Upper · Passed
3rd reading, passed 32-6 with Committee Substitute (1)
upper
Feb 26, 2025
Upper · Passed
reported favorably, 1st reading, to Calendar with Committee Substitute (1)
upper
Feb 19, 2025
Committee
to State & Local Government (S)
upper
Feb 14, 2025
Committee
to Committee on Committees (S)
upper
Feb 14, 2025
Introduced
introduced in Senate
upper
0 primary · 0 co-sponsors

Sponsors

No sponsor information available.