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House
File
721
-
Introduced
HOUSE
FILE
721
BY
STONE
A
BILL
FOR
An
Act
relating
to
the
consideration
of
nonfinancial
factors
in
1
providing
financial
services,
including
actions
regarding
2
the
economic
interest
of
enterprise
shareholders
and
3
participants
in
and
beneficiaries
of
public
pension
benefit
4
plans,
and
providing
penalties.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
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Section
1.
NEW
SECTION
.
12L.1
Definitions.
1
For
purposes
of
this
chapter:
2
1.
“Best
economic
interest”
means
investment
pursuant
to
the
3
objective
of
maximizing
risk-adjusted
investment
returns
of
the
4
participants
and
beneficiaries
of
a
pension
benefit
plan
over
a
5
time
horizon
consistent
with
the
risk
management
profile
of
the
6
plan.
7
2.
“Consumer”
means
a
person
who
is
a
resident
of
this
state
8
and
to
which
any
of
the
following
apply:
9
a.
The
person
has
an
interest
in
an
investment
company,
10
including
but
not
limited
to
mutual
funds
and
exchange-traded
11
funds,
registered
with
the
federal
securities
and
exchange
12
commission
that
directly
or
indirectly
owns
shares
of
an
13
enterprise
regulated
by
the
state.
14
b.
The
person
is
a
beneficiary
of
or
participant
in
a
15
pension
benefit
plan.
16
c.
The
person
has
sought
or
is
seeking
a
relationship
with
a
17
financial
institution
for
the
provision
of
financial
services.
18
3.
“Discriminate
in
the
provision
of
financial
services”
19
means
to
refuse
to
provide,
terminate,
or
restrict
financial
20
services
based
on
an
analysis
or
rating
that
evaluates
any
of
21
the
following:
22
a.
A
person’s
speech,
association,
or
exercise
of
religion
23
that
is
protected
from
government
interference
by
state
or
24
federal
law.
25
b.
A
person’s
failure
or
refusal
to
adopt
a
target
or
make
26
a
disclosure
related
to
greenhouse
gas
emissions
beyond
what
27
is
required
by
law.
28
c.
A
person’s
failure
or
refusal
to
conduct
any
type
of
29
racial,
diversity,
or
gender
audit
or
to
provide
a
preference
30
or
benefit
based
on
race,
diversity,
or
gender
beyond
what
is
31
required
by
law.
32
d.
A
person’s
failure
or
refusal
to
assist
an
employee
in
33
obtaining
an
abortion
or
gender
reassignment
services.
34
e.
A
person’s
participation
in
lawful
business
associations
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or
activities,
including
but
not
limited
to
those
related
to
1
fossil
fuels,
firearms,
firearm
accessories,
or
ammunition,
2
except
for
purposes
of
a
financial
institution’s
analysis
of
3
a
person’s
quantifiable
financial
risks
based
on
impartial,
4
financial-based
standards
established
in
advance
by
the
5
financial
institution
and
publicly
disclosed
to
consumers.
6
4.
“Economic
analysis”
means
a
written
analysis
7
demonstrating
the
factors
considered
in
evaluating
the
economic
8
impact
of
a
shareholder-sponsored
proposal.
At
a
minimum,
the
9
analysis
must
address
all
of
the
following
factors:
10
a.
The
subject
matter
of
the
shareholder-sponsored
proposal.
11
b.
An
evaluation
of
the
investment
company’s
stated
reasons
12
for
opposition
to
the
shareholder-sponsored
proposal.
13
c.
An
evaluation
of
whether
the
shareholder-sponsored
14
proposal
reflects
the
investment
objectives
and
risk
management
15
profile
of
the
pension
benefit
plan
in
which
the
participants
16
and
beneficiaries
are
invested.
17
d.
An
evaluation
of
the
economic
benefits
and
costs
of
18
implementing
the
proposal,
as
written,
over
a
time
horizon
that
19
reflects
the
investment
objectives
and
risk
management
profile
20
of
the
plan.
21
e.
The
quantifiable
impact
of
the
shareholder-sponsored
22
proposal,
as
written,
on
the
investment
returns
of
the
23
participants
and
beneficiaries
of
the
plan.
24
f.
An
explanation
of
modeling,
procedures,
or
processes
used
25
to
complete
the
economic
analysis.
26
5.
“Fiduciary”
means
a
person
who,
with
respect
to
a
pension
27
benefit
plan,
does
any
of
the
following:
28
a.
Exercises
discretionary
authority
or
discretionary
29
control
with
respect
to
management
of
the
plan
or
exercises
30
authority
or
control
with
respect
to
acquisition,
management,
31
or
disposition
of
the
plan’s
assets.
32
b.
Renders
investment
advice
for
a
fee
or
other
33
compensation,
direct
or
indirect,
with
respect
to
moneys
or
34
other
assets
of
the
plan
or
has
authority
or
responsibility
to
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do
so.
1
c.
Has
discretionary
authority
or
discretionary
2
responsibility
in
the
administration
of
the
plan.
3
6.
“Financial
institution”
means
any
of
the
following:
4
a.
A
bank
that
has
more
than
one
hundred
billion
dollars
of
5
assets.
6
b.
A
payment
processor,
credit
card
company,
credit
card
7
network,
payment
network,
payment
service
provider,
or
payment
8
gateway
that
has
processed
more
than
one
hundred
billion
9
dollars
in
transactions
in
the
previous
calendar
year.
10
c.
An
affiliate
or
subsidiary
of
an
entity
described
in
11
paragraph
“a”
or
“b”
that
is
owned
or
controlled
by
the
entity.
12
7.
“Financial
service”
means
a
financial
product
or
service
13
offered
by
a
financial
institution.
14
8.
“Investment
company”
means
the
same
as
defined
in
15
15
U.S.C.
§80a-3.
16
9.
“Pension
benefit
plan”
or
“plan”
means
a
plan,
fund,
or
17
program
established,
maintained,
or
offered
by
a
public
entity,
18
including
but
not
limited
to
a
public
retirement
system
as
19
defined
in
section
97D.5,
if
by
its
terms
or
as
a
result
of
20
surrounding
circumstances
the
plan,
fund,
or
program
does
any
21
of
the
following:
22
a.
Provides
retirement
income
or
other
retirement
benefits
23
to
employees
or
former
employees.
24
b.
Results
in
a
deferral
of
income
by
employees
for
a
period
25
extending
to
the
termination
of
covered
employment
or
beyond.
26
10.
“Proxy
advisory
firm”
means
a
person
who
is
engaged
27
in
the
business
of
providing
proxy
voting
advice,
research,
28
analysis,
ratings,
or
recommendations
to
a
fiduciary,
29
shareholder,
or
investor,
including
institutional
investors.
30
11.
“Public
entity”
means
the
state,
political
subdivisions
31
of
the
state,
public
school
corporations,
and
all
public
32
officers,
boards,
commissions,
departments,
agencies,
and
33
authorities
empowered
by
law
to
enter
into
public
contracts
for
34
the
expenditure
of
public
funds,
including
the
state
board
of
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regents
and
institutions
under
the
control
of
the
state
board
1
of
regents.
2
12.
“Shareholder-sponsored
proposal”
means
a
proposal
3
submitted
to
an
issuer
of
securities
by
a
shareholder
under
17
4
C.F.R.
§240.14a-8.
5
Sec.
2.
NEW
SECTION
.
12L.2
Fiduciary
voting
6
responsibilities.
7
1.
A
fiduciary
shall
vote
all
shares
held
directly
8
or
indirectly
by,
subject
to,
or
on
behalf
of
a
pension
9
benefit
plan
for
the
benefit
of
the
plan’s
participants
and
10
beneficiaries
solely
in
the
best
economic
interest
of
the
plan
11
participants
and
beneficiaries.
12
2.
For
purposes
of
this
section,
with
respect
to
a
13
shareholder-sponsored
proposal,
there
is
a
rebuttable
14
presumption
that
a
fiduciary
votes
its
shares
solely
15
in
the
best
economic
interest
of
the
plan
participants
16
and
beneficiaries
if
the
fiduciary’s
vote
follows
the
17
recommendation
of
the
board
of
directors
of
the
issuer
of
the
18
shares,
as
long
as
the
board
includes
a
majority
of
independent
19
directors.
20
3.
With
respect
to
a
shareholder-sponsored
proposal,
21
a
fiduciary’s
vote
in
a
manner
inconsistent
with
the
22
recommendation
of
the
board
of
directors
of
the
issuer
of
the
23
shares
is
presumed
to
be
in
the
best
economic
interest
of
the
24
plan
participants
and
beneficiaries
if
any
of
the
following
25
criteria
are
met:
26
a.
The
fiduciary
conducts
and
documents
an
economic
analysis
27
demonstrating
that
such
a
vote
is
in
the
best
economic
interest
28
of
the
plan
participants
and
beneficiaries.
29
b.
On
behalf
of
the
fiduciary,
a
third
party
conducts
and
30
documents
an
economic
analysis
demonstrating
that
such
a
vote
31
is
in
the
best
economic
interest
of
the
plan
participants
32
and
beneficiaries,
and
the
fiduciary
determines
that
the
33
economic
analysis
adequately
demonstrates
that
such
a
vote
is
34
in
the
best
economic
interest
of
the
plan
participants
and
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beneficiaries.
1
4.
A
fiduciary
shall
not
vote
in
a
manner
that
does
any
of
2
the
following:
3
a.
Subordinates
the
economic
interest
of
the
plan’s
4
participants
and
beneficiaries
to
any
environmental,
social,
5
policy,
governance,
or
ideological
goal.
6
b.
Promotes
any
environmental,
social,
policy,
governance,
7
or
ideological
goal,
unless,
based
on
an
economic
analysis,
it
8
is
determined
that
the
vote
is
in
the
best
economic
interest
of
9
the
plan
participants
and
beneficiaries.
10
5.
With
respect
to
shareholder-sponsored
proposals,
a
11
fiduciary
shall
annually
disclose
in
a
report
to
the
treasurer
12
of
state
all
of
the
following:
13
a.
Each
vote
that
was
inconsistent
with
the
recommendation
14
of
an
issuer’s
board
of
directors
composed
of
a
majority
of
15
independent
directors.
16
b.
The
economic
analysis
conducted
and
documented
with
17
respect
to
each
vote
described
in
subsection
3
to
determine
18
that
the
vote
was
in
the
best
economic
interest
of
the
plan’s
19
participants
and
beneficiaries.
20
6.
The
report
required
under
subsection
5
must
be
certified
21
by
the
chief
executive
officer
and
chief
financial
officer,
or
22
an
individual
acting
in
each
capacity,
of
the
fiduciary.
23
7.
At
least
once
every
three
years,
a
fiduciary
shall
24
back
test
its
economic
analysis
to
ensure
that
the
models,
25
procedures,
and
processes
it
uses
predict
the
best
economic
26
interest
of
the
plan’s
participants
and
beneficiaries,
and
27
shall
deliver
a
report
detailing
such
back
testing
to
the
28
treasurer
of
state.
Based
on
such
back
testing,
the
chief
29
executive
officer
and
chief
financial
officer,
or
an
individual
30
acting
in
each
capacity,
of
the
fiduciary
shall
certify
that
31
the
economic
analysis
performed
by
the
fiduciary
and
included
32
in
the
report
is
effective.
33
8.
The
court
may
award
court
costs
and
reasonable
attorney
34
fees
to
a
party
who
prevails
in
an
action
brought
under
this
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section.
1
Sec.
3.
NEW
SECTION
.
12L.3
Proxy
advisory
firms.
2
1.
A
proxy
advisory
firm
shall
not
provide
proxy
voting
3
advice
with
respect
to
shareholder-sponsored
proposals
4
submitted
to
any
enterprise
that
the
state
regulates,
unless
5
the
proxy
advisory
firm
bases
its
voting
recommendations
6
solely
on
the
best
economic
interests
of
the
enterprise’s
7
shareholders.
8
2.
For
purposes
of
this
section,
with
respect
to
a
9
shareholder-sponsored
proposal
submitted
to
an
enterprise
10
regulated
by
the
state,
there
is
a
presumption
that
a
proxy
11
advisory
firm’s
voting
recommendation
is
based
solely
on
the
12
best
economic
interest
of
the
enterprise’s
shareholders
if
13
the
recommendation
follows
the
recommendation
of
the
board
of
14
directors
of
the
issuer
of
the
shares,
as
long
as
the
board
15
includes
a
majority
of
independent
directors.
16
3.
With
respect
to
a
shareholder-sponsored
proposal
17
submitted
to
an
enterprise
regulated
by
the
state,
a
proxy
18
advisory
firm
may
recommend
a
vote
that
is
inconsistent
with
19
the
recommendation
of
the
board
of
directors
of
the
issuer
of
20
the
shares
if
the
proxy
advisory
firm
conducts
and
documents
an
21
economic
analysis
demonstrating
that
such
a
vote
is
in
the
best
22
economic
interest
of
the
enterprise’s
shareholders.
23
4.
With
respect
to
shareholder-sponsored
proposals
24
submitted
to
an
enterprise
regulated
by
the
state,
a
proxy
25
advisory
firm
shall
annually
disclose
in
a
report
to
the
26
treasurer
of
state
all
of
the
following:
27
a.
Each
vote
recommendation
that
was
inconsistent
with
the
28
recommendation
of
an
issuer’s
board
of
directors
composed
of
a
29
majority
of
independent
directors.
30
b.
The
economic
analysis
conducted
and
documented
with
31
respect
to
each
vote
recommendation
described
in
subsection
32
3
to
determine
that
the
vote
recommendation
was
in
the
best
33
economic
interest
of
the
regulated
enterprise’s
shareholders.
34
Sec.
4.
NEW
SECTION
.
12L.4
Consumer
right
to
disclosure.
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1.
a.
If
a
consumer
has
reason
to
believe
that
the
1
requirements
of
section
12L.2
or
12L.3
have
not
been
met,
a
2
consumer
may
submit
a
request
to
any
of
the
following
to
obtain
3
a
copy
of
the
documented
economic
analysis
demonstrating
that
4
such
a
vote
is
solely
in
the
best
economic
interest
of
the
5
consumer:
6
(1)
The
investment
company
that
owns
shares
of
an
enterprise
7
regulated
by
the
state.
8
(2)
The
pension
benefit
plan,
in
each
case,
in
which
the
9
consumer
is
an
investor,
beneficiary,
or
participant.
10
b.
There
is
a
presumption
that
a
vote
is
solely
in
the
11
best
economic
interest
of
the
consumer
if
the
vote
follows
the
12
recommendation
of
the
board
of
directors
of
the
issuer
of
the
13
shares,
as
long
as
the
board
includes
a
majority
of
independent
14
directors.
15
2.
a.
The
investment
company
or
plan
shall
respond
in
16
writing
to
the
consumer
within
ninety
days
of
receipt
of
17
a
request
described
in
subsection
1
by
doing
one
of
the
18
following:
19
(1)
Providing
the
consumer
with
the
requested
economic
20
analysis.
21
(2)
Informing
the
consumer
that
no
economic
analysis
is
22
available,
if
the
investment
company
did
not
conduct
and
23
document
an
economic
analysis.
24
(3)
Informing
the
consumer
that
the
vote
at
issue
was
25
consistent
with
the
recommendation
of
the
board
of
directors
26
of
the
issuer
of
the
shares
and
such
board
is
composed
of
a
27
majority
of
independent
directors.
28
b.
The
investment
company
or
plan
shall
provide
information
29
in
response
to
a
consumer
request
at
no
cost
up
to
twice
30
annually
per
consumer.
31
Sec.
5.
NEW
SECTION
.
12L.5
Prohibition
on
discrimination.
32
1.
A
financial
institution
shall
not
discriminate
in
33
the
provision
of
financial
services
or
agree,
conspire,
or
34
coordinate
to
do
so.
35
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2.
If
a
financial
institution
refuses
to
provide,
1
restricts,
or
terminates
service
to
a
consumer,
the
consumer
2
may
submit
a
request
for
a
written
statement
of
the
specific
3
reasons
for
the
decision
by
telephone,
mail,
or
electronic
4
mail
within
ninety
days
of
receiving
notice
of
the
decision.
5
Unless
otherwise
prohibited
by
law,
the
financial
institution
6
shall
transmit
the
written
statement
within
fourteen
days
of
7
receiving
the
consumer’s
request.
The
statement
must
include
8
all
of
the
following:
9
a.
A
detailed
explanation
of
the
basis
for
the
denial,
10
restriction,
or
termination
of
service.
11
b.
A
copy
of
the
terms
of
service
agreed
to
by
the
consumer
12
and
the
financial
institution.
13
c.
A
citation
of
the
specific
provisions
of
the
terms
of
14
service
on
which
the
financial
institution
relied
to
deny,
15
restrict,
or
terminate
service.
16
3.
A
consumer
who
has
been
discriminated
against
by
a
17
financial
institution
may
bring
an
action
to
recover
damages
18
or
seek
an
injunction.
19
Sec.
6.
NEW
SECTION
.
12L.6
Enforcement.
20
1.
This
chapter
may
be
enforced
by
the
attorney
general.
21
2.
If
the
attorney
general
has
reasonable
cause
to
believe
22
that
a
person
has
engaged
in,
is
engaging
in,
or
is
about
to
23
engage
in
a
violation
of
this
chapter,
the
attorney
general
may
24
do
any
of
the
following:
25
a.
Require
the
person
to
file
on
forms
prescribed
by
the
26
attorney
general
a
statement
or
report
in
writing,
under
oath,
27
as
to
all
the
circumstances
surrounding
the
actual,
alleged,
or
28
potential
violation
and
such
other
data
and
information
as
the
29
attorney
general
deems
necessary.
30
b.
Examine
under
oath
any
person
in
connection
with
the
31
actual,
alleged,
or
potential
violation.
32
c.
Examine
any
record,
book,
document,
account,
or
paper
as
33
the
attorney
general
deems
necessary.
34
d.
Issue
civil
investigatory
demands
consistent
with
35
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investigation
into
a
potential
enforcement
action.
1
e.
Under
an
order
of
the
district
court,
impound
any
record,
2
book,
document,
account,
paper,
or
sample
or
material
relating
3
to
the
actual,
alleged,
or
potential
violation
and
retain
the
4
same
in
the
attorney
general’s
possession
until
the
completion
5
of
all
proceedings
undertaken
under
this
chapter
or
in
court.
6
3.
The
attorney
general
may
initiate
an
action
in
the
7
name
of
the
state
and
may
seek
an
injunction
to
restrain
8
any
violations
of
this
chapter.
A
violation
of
this
chapter
9
shall
constitute
irreparable
harm.
Each
share
voted
by
a
10
fiduciary
that
is
not
voted
in
the
best
economic
interest
of
11
the
shareholder
constitutes
a
separate
violation.
The
attorney
12
general
may
also
seek
civil
penalties
for
each
violation
under
13
this
chapter.
All
civil
penalties
issued
shall
be
in
equity.
14
Civil
penalties
shall
not
exceed
one
thousand
dollars
per
15
violation.
Civil
penalties
collected
under
this
chapter
shall
16
be
deposited
in
the
general
fund
of
the
state.
17
Sec.
7.
Section
97A.7,
subsection
1,
Code
2025,
is
amended
18
to
read
as
follows:
19
1.
The
board
of
trustees
shall
be
the
trustees
of
the
20
retirement
fund
created
by
this
chapter
as
provided
in
section
21
97A.8
and
shall
have
full
power
to
invest
and
reinvest
funds
22
subject
to
the
terms,
conditions,
limitations,
and
restrictions
23
imposed
by
subsection
2
and
chapters
12F
,
12H
,
12J
,
and
12K
,
24
and
12L
and
subject
to
like
terms,
conditions,
limitations,
25
and
restrictions
said
trustees
shall
have
full
power
to
hold,
26
purchase,
sell,
assign,
transfer,
or
dispose
of
any
of
the
27
securities
and
investments
of
the
retirement
fund
which
have
28
been
invested,
as
well
as
of
the
proceeds
of
said
investments
29
and
any
moneys
belonging
to
the
retirement
fund.
The
board
30
of
trustees
may
authorize
the
treasurer
of
state
to
exercise
31
any
of
the
duties
of
this
section
.
When
so
authorized
the
32
treasurer
of
state
shall
report
any
transactions
to
the
board
33
of
trustees
at
its
next
monthly
meeting.
34
Sec.
8.
Section
97B.4,
subsection
5,
Code
2025,
is
amended
35
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to
read
as
follows:
1
5.
Investments.
The
system,
through
the
chief
investment
2
officer,
shall
invest,
subject
to
chapters
12F
,
12H
,
12J
,
and
3
12K
,
and
12L
and
in
accordance
with
the
investment
policy
and
4
goal
statement
established
by
the
board,
the
portion
of
the
5
retirement
fund
which,
in
the
judgment
of
the
system,
is
not
6
needed
for
current
payment
of
benefits
under
this
chapter
7
subject
to
the
requirements
of
section
97B.7A
.
8
Sec.
9.
Section
97B.7A,
subsection
1,
Code
2025,
is
amended
9
by
adding
the
following
new
paragraph:
10
NEW
PARAGRAPH
.
d.
Prioritize
the
best
economic
interest
of
11
the
system’s
participants
and
beneficiaries
in
accordance
with
12
chapter
12L.
13
Sec.
10.
Section
262.14,
unnumbered
paragraph
1,
Code
2025,
14
is
amended
to
read
as
follows:
15
The
board
may
invest
funds
belonging
to
the
institutions,
16
subject
to
chapters
12F
,
12H
,
12J
,
and
12K
,
and
12L
and
the
17
following
regulations:
18
EXPLANATION
19
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
20
the
explanation’s
substance
by
the
members
of
the
general
assembly.
21
This
bill
requires
a
fiduciary
to
vote
all
shares
of
a
22
pension
benefit
plan
established,
maintained,
or
offered
by
23
a
public
entity
solely
in
the
best
economic
interest
of
the
24
plan
participants
and
beneficiaries.
The
bill
creates
the
25
rebuttable
presumption
that,
if
a
fiduciary’s
vote
aligns
with
26
the
recommendation
of
the
board
of
directors
of
the
issuer
27
of
the
shares
or
if
the
fiduciary
or
a
third
party
conducts
28
and
documents
an
economic
analysis
showing
that
the
vote
is
29
in
the
best
economic
interest
of
the
plan
participants
and
30
beneficiaries,
the
vote
is
in
the
best
interest
of
the
plan
31
participants
and
beneficiaries.
The
bill
prohibits
a
fiduciary
32
from
voting
shares
of
a
plan
based
on
any
environmental,
33
social,
policy,
governance,
or
ideological
goal
that
is
34
not
in
the
best
economic
interest
of
plan
participants
and
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beneficiaries.
1
The
bill
requires
a
fiduciary
to
annually
report
to
2
the
treasurer
of
state
any
vote
inconsistent
with
the
3
recommendation
of
an
issuer’s
board
of
directors
and
the
4
economic
analysis
on
which
the
fiduciary
relied.
This
report
5
must
be
certified
by
the
fiduciary’s
chief
executive
officer
6
and
chief
financial
officer.
7
The
bill
also
requires
a
fiduciary
to
review
its
economic
8
analysis
every
three
years
to
ensure
that
the
fiduciary’s
9
models,
procedures,
and
processes
predict
the
best
economic
10
interest
of
the
plan
participants
and
beneficiaries.
11
The
bill
permits
a
court
to
award
court
costs
and
reasonable
12
attorney
fees
to
the
prevailing
party
in
a
suit
concerning
13
fiduciary
voting
responsibilities
under
the
bill.
14
The
bill
prohibits
a
proxy
advisory
firm
from
providing
15
proxy
voting
advice
regarding
shareholder-sponsored
proposals
16
to
an
entity
that
the
state
regulates
unless
the
advice
is
17
based
solely
on
the
best
economic
interests
of
the
enterprise’s
18
shareholders.
If
a
proxy
advisory
firm’s
advice
follows
the
19
recommendation
of
the
board
of
directors
of
the
issuer
of
the
20
shares
or
if
the
proxy
advisory
firm
conducts
and
documents
an
21
economic
analysis
demonstrating
that
the
vote
is
in
the
best
22
economic
interest
of
the
plan
participants
and
beneficiaries,
23
then
the
advice
is
presumed
to
be
based
solely
on
the
best
24
economic
interest
of
the
enterprise’s
shareholders.
A
proxy
25
advisory
firm
must
submit
an
annual
report
to
the
treasurer
of
26
state
disclosing
any
vote
inconsistent
with
the
issuer’s
board
27
of
directors’
recommendations
and
the
economic
analysis
on
28
which
the
proxy
advisory
firm
relied.
29
The
bill
permits
an
investor,
beneficiary,
or
participant
of
30
a
plan
to
submit
a
request
for
the
economic
analysis
conducted
31
for
a
fiduciary’s
vote
to
the
investment
company
that
owns
32
shares
of
an
enterprise
regulated
by
the
state
or
the
plan
if
33
the
individual
has
reason
to
believe
the
provisions
of
the
bill
34
have
not
been
met.
The
investment
company
or
plan
must
respond
35
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in
writing
within
90
days
by
providing
the
requested
economic
1
analysis
or
informing
the
individual
that
no
economic
analysis
2
was
conducted
or
the
vote
aligned
with
the
recommendation
3
of
the
board
of
directors
of
the
issuer
of
the
shares.
The
4
investment
company
or
plan
must
provide
such
a
response
without
5
cost
up
to
twice
annually
per
consumer.
6
The
bill
prohibits
a
financial
institution
from
refusing
to
7
provide,
terminating,
or
restricting
financial
services
based
8
on
certain
nonfinancial
factors.
If
a
financial
institution
9
refuses
to
provide,
terminates,
or
restricts
financial
10
services,
a
consumer
may
request
within
90
days
a
written
11
statement
of
the
specific
reasons
for
the
decision,
which
the
12
financial
institution
must
provide
within
14
days.
A
person
13
who
is
discriminated
against
by
a
financial
institution
may
14
bring
an
action
to
recover
damages
or
seek
an
injunction.
15
The
bill
allows
the
attorney
general
to
investigate
any
16
suspected
violations
of
the
bill
and
to
enforce
the
bill’s
17
provisions
by
initiating
an
action
in
the
name
of
the
state
18
and
seeking
civil
penalties
for
each
violation.
Each
share
19
not
voted
in
the
best
economic
interest
of
the
shareholder
20
qualifies
as
a
separate
violation
and
constitutes
irreparable
21
harm.
The
bill
requires
civil
penalties
to
be
in
equity
and
22
to
not
exceed
$1,000
per
violation.
Civil
penalties
collected
23
under
the
bill
are
deposited
in
the
general
fund
of
the
state.
24
The
bill
makes
conforming
changes.
25
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