Protecting Americans’ Retirement Savings from Politics Act

Bill: 118-hr-4767
Sponsor: Rep. Steil, Bryan [R-WI-1]
Introduced: 2023-07-20 in the House
Policy area: Finance and Financial Sector
Subjects: Bank accounts, deposits, capital
Congressional oversight
Corporate finance and management
Economic performance and conditions
Employee benefits and pensions
Financial services and investments
Licensing and registrations
Performance measurement
Political movements and philosophies
Securities

Summary:
action_date: 2023-07-20
text: 

Protecting Americans’ Retirement Savings from Politics Act

This bill revises laws and regulations regarding shareholder proposals, the proxy voting process, and proxy advisory firms. (Public companies regularly hold shareholder meetings during which proposals, including those presented by shareholders, can be voted on by eligible shareholders. Voting is held in-person or by proxy. To vote by proxy, shareholders fill out proxy cards with voting directions and submit it to a designated representative. Proxy advisory firms provide voting services and advice to institutional investors.)

The bill allows an issuer of securities to exclude certain shareholder proposals from its proxy materials, including proposals that address the same subject matter as a previously offered proposal or those related to environmental, social, or political issues.

Passively managed funds (e.g., index funds) that vote shares on behalf of fund investors in proxy shareholder votes must adhere to requirements set forth by the bill, including by voting shares according to the instructions of the beneficial owner of the securities. 

The bill also creates new requirements for proxy advisory firms. Under the bill, a proxy advisory firm is prohibited from using robovoting and must register with the Securities and Exchange Commission (SEC) to provide proxy-voting advice to a client using interstate commerce. The bill establishes a private right of action against a proxy advisory firm and allows these firms to be held liable for failing to disclose material information or making false or misleading statements in the context of the sale or purchase of securities.

The bill also requires various disclosures and reporting to the SEC. 
 
action_date: 2023-12-19
text: 

Protecting Americans’ Retirement Savings from Politics Act

This bill revises laws and regulations regarding shareholder proposals, the proxy voting process, and proxy advisory firms. (Public companies regularly hold shareholder meetings during which proposals, including those presented by shareholders, can be voted on by eligible shareholders. Voting is held in-person or by proxy. To vote by proxy, shareholders fill out proxy cards with voting directions and submit it to a designated representative. Proxy advisory firms provide voting services and advice to institutional investors.)

The bill allows an issuer of securities to exclude certain shareholder proposals from its proxy materials, including proposals that address the same subject matter as a previously offered proposal or those related to environmental, social, or political issues.

Passively managed funds (e.g., index funds) that vote shares on behalf of fund investors in proxy shareholder votes must adhere to requirements set forth by the bill, including by voting shares according to the instructions of the beneficial owner of the securities. 

The bill also creates new requirements for proxy advisory firms. Under the bill, a proxy advisory firm is prohibited from using robovoting and must register with the Securities and Exchange Commission (SEC) to provide proxy-voting advice to a client using interstate commerce. The bill establishes a private right of action against a proxy advisory firm and allows these firms to be held liable for failing to disclose material information or making false or misleading statements in the context of the sale or purchase of securities.

The bill also requires various disclosures and reporting to the SEC. 
 

Legislative actions:
action_date: 2023-12-19
text: Placed on the Union Calendar, Calendar No. 263.
action_date: 2023-12-19
text: Reported (Amended) by the Committee on Financial Services. H. Rept. 118-324.
action_date: 2023-12-19
text: Reported (Amended) by the Committee on Financial Services. H. Rept. 118-324.
action_date: 2023-07-27
text: Ordered to be Reported (Amended) by the Yeas and Nays: 29 - 21.
action_date: 2023-07-27
text: Committee Consideration and Mark-up Session Held
action_date: 2023-07-20
text: Referred to the House Committee on Financial Services.
action_date: 2023-07-20
text: Introduced in House
action_date: 2023-07-20
text: Introduced in House