HB 1170: Public finance; Public Finance Protection Act; terms; standard of care; nonpecuniary factors; vote; authority; proxy votes; Attorney General; immunity; indemnification; severability; codification. - Oklahoma

Floor (House) → Floor (Senate) · 3 edits

MINOR

The bill was transitioned from the House version to the Senate floor version, resulting in significant formatting updates and a reorganization of the text. The substantive legal content, including the definitions of 'fiduciary' and 'nonpecuniary' factors and the prohibition on considering environmental or social goals in investment decisions, remains identical to the House version. No new policy requirements, funding changes, or eligibility criteria were introduced in this specific revision.

TECHNICAL

The document header was updated to reflect the 'Senate Floor Version' and the date was changed to April 21, 2026.

The bill's title block was restructured to list the sponsors (Lepak, Daniels, and Jett) and include a subject matter index.

The text of the bill was renumbered and reorganized to align with Senate formatting standards, though the actual legal language and sections remain unchanged.

House Committee Substitute → Floor (House) · 3 edits

MINOR

The bill text was updated from the House Committee Substitute version to the Floor version, which includes the addition of a co-sponsor (Senator Daniels) and the correction of the official Act title to match the committee substitute. The substantive legal definitions and fiduciary duties within the act remain unchanged, indicating these are primarily formatting and procedural updates rather than new policy.

TECHNICAL

Added Senator Daniels as a co-sponsor to the bill, reflecting the final version approved by the Senate committee.

Corrected the header and Act title to align with the committee substitute version, ensuring the official citation matches the enacted text.

Removed the 'House Committee Substitute' label from the main header, as the text is now the Floor version.

Proposed Policy Committee Substitute 1 → House Committee Substitute · 3 edits

MINOR

The bill was amended to remove the 'Proposed Policy Committee' designation and update the document title to 'Committee Substitute'. The substantive legal text, including definitions of fiduciary duties and investment standards, remains unchanged from the previous version.

TECHNICAL

The header changed from 'Proposed Policy Committee Substitute' to 'Committee Substitute', indicating the bill has moved to a different legislative stage.

The page numbering and reference numbers (Req. No.) were updated to reflect the new version of the document.

The 'Proposed Policy' label was removed from the act's title page.

Proposed Committee Substitute (full committee) 1 → Proposed Policy Committee Substitute 1 · 3 edits

MINOR

The bill text was updated from a 'Proposed Committee Substitute' to a 'Proposed Policy Committee Substitute,' indicating the bill has advanced in the legislative process. The changes are primarily technical, including updating the document title, changing the requirement number from 13011 to 12392, and adjusting line spacing and indentation. No substantive policy, funding, or eligibility changes were made in this specific revision.

TECHNICAL

Updated the document header from 'Proposed Committee Substitute' to 'Proposed Policy Committee Substitute' to reflect the bill's current stage in the legislative process.

Changed the requirement number in the footer from 13011 to 12392, likely to track the new version of the bill.

Adjusted line spacing and indentation throughout the text to improve formatting and readability.

Engrossed → Proposed Committee Substitute (full committee) 1 · 6 edits

MODERATE

The bill was completely rewritten by the committee to clarify and strengthen the 'Oklahoma Public Finance Protection Act.' The primary change is the explicit prohibition of considering nonpecuniary factors (like environmental, social, or political goals) when making investment decisions for state pension funds. The new text defines 'pecuniary factors' strictly as those affecting financial risk or return, ensuring fiduciaries must vote and invest solely based on financial outcomes.

Scope change

The scope remains focused on state pension benefit plans, but the applicability of the rules is now stricter regarding investment criteria.

DEFINITION

Added a specific definition for 'Material' to clarify that risks or returns related to non-investment-specific events are excluded from consideration.

Expanded the definition of 'Nonpecuniary' to explicitly include actions taken to further environmental, social, political, or ideological goals.

REQUIREMENT

Revised the fiduciary duty standard to explicitly state that evaluations must take into account 'only pecuniary factors' and that promoting nonpecuniary benefits is prohibited.

Strengthened proxy voting rules to explicitly prohibit voting to further nonpecuniary or other benefits/goals.

Added a requirement that proxy advisory firms must follow voting guidelines consistent with pecuniary factors to be used by the plan.

TIMELINE

Added a provision declaring an emergency to allow the bill to take effect immediately.

Introduced → Engrossed · 4 edits · Mar 25, 2026

MODERATE

The bill was amended to clarify that pension funds must prioritize financial returns over environmental, social, or political goals. The changes explicitly prohibit using plan assets to further non-financial objectives and restrict reliance on proxy voting advice that does not align with pecuniary factors. Additionally, the amendment clarifies the definition of 'nonpecuniary' factors and removes references to Attorney General enforcement powers that were present in the original version.

Scope change

The scope of the bill remains focused on public pension finance, but the applicability of fiduciary duties is now strictly limited to pecuniary (financial) factors, removing ambiguity about considering social or political goals.

DEFINITION

Redefined 'nonpecuniary' to explicitly include environmental, social, or political goals, ensuring these are excluded from fiduciary decision-making.

REQUIREMENT

Added a specific prohibition requiring fiduciaries to evaluate investments based solely on pecuniary factors and forbidding the promotion of nonpecuniary benefits.

Clarified that proxy votes must be cast solely in the pecuniary interest of plan participants, prohibiting votes intended to further non-financial goals.

ENFORCEMENT

Removed language authorizing the Attorney General to examine persons and records, shifting the enforcement focus to the State Treasurer for providing notices.

Public finance; Public Finance Protection Act; terms; standard of care; nonpecuniary factors; vote; authority; proxy votes; Attorney General; immunity; indemnification; severability; codification.

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