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REFERENCE TITLE: governmental entities; proxy voting; prohibition |
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State of Arizona House of Representatives Fifty-sixth Legislature Second Regular Session 2024
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HB 2213 |
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Introduced by Representative Livingston
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An Act
amending title 35, chapter 2, article 2, Arizona Revised Statutes, by adding section 35-320; amending title 35, chapter 2, Arizona Revised Statutes, by adding article 4; relating to public finances.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 35, chapter 2, article 2, Arizona Revised Statutes, is amended by adding section 35-320, to read:
35-320. State investments; investment managers; list; posting
A. The state treasurer shall post a current list of its investments by name on the state treasurer's publicly accessible website. The state treasurer shall update Any changes to the list within a reasonable period of time.
B. The state treasurer shall post the current list of its investment managers on the state treasurer's publicly accessible website and shall update any changes to the list within a reasonable period of time.
C. All state investments made by the state treasurer shall be made in the sole interest of the beneficiary taxpayer. The state treasurer's evaluation of an investment must be based on pecuniary factors as prescribed in article 4 of this chapter.
Sec. 2. Title 35, chapter 2, Arizona Revised Statutes, is amended by adding article 4, to read:
ARTICLE 4. GOVERNMENT INVESTMENTS PROTECTION
35-351. Definitions
In this article, unless the context otherwise requires:
1. "Pecuniary factor" means a factor that has a material effect on the financial risk or the financial return of an investment based on appropriate investment horizons consistent with a plan's investment objectives and funding policy.
2. "Plan" means any plan, fund or program that is established or maintained by this State or a political subdivision of this state, including a university under the jurisdiction of the Arizona board of regents and a community college district as defined in section 15-1401, to do any of the following:
(a) Provide retirement income or other retirement benefits to employees or former employees.
(b) Defer income by employees for a period of time extending to the termination of covered employment or beyond.
(c) Invest taxpayer monies for any purpose.
35-352. Plans; voting of ownership interests
A. A governmental entity that establishes or maintains a plan must make all direct investment decisions based solely on pecuniary factors when evaluating an investment.
B. A governmental entity that establishes or maintains a plan must vote all directly held shares, or have the governmental entity's directly held shares voted, based solely on pecuniary factors when voting proxies.
C. If a governmental entity that establishes or maintains a plan has indirect investments or commingled investments, the governmental entity must notify the general partner or investment manager that in all cases where the governmental entity has the option, the general partner or investment manager must:
1. Make investment decisions based solely on pecuniary factors when evaluating an investment.
2. Proportionally vote directly held shares, or have the governmental entity's directly held shares proportionally voted, based solely on pecuniary factors.