ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
prohibited uses; public monies
Purpose
Prohibits the use of public monies to promote, support or maintain diversity, equity and inclusion (DEI) or to engage in political or social activism by the state, a university, a community college or a county, city, town or other political subdivision of Arizona.
Background
Current statute prohibits a public entity from entering into a contract with a value of $100,000 or more with a company to acquire or dispose of services, supplies, information technology or construction unless the contract includes a written certification that the company is not currently engaged in, and agrees for the duration of the contract to not engage in, a boycott of goods and services from Israel. A public entity may not adopt a procurement, investment or other policy that has the effect of inducing or requiring a person or company to boycott Israel (A.R.S. §§ 35-393 and 35-393.01). A public entity also may not enter into or renew a contract with a company to acquire or dispose of services, supplies, information technology, goods or construction unless the contract includes a written certification that the company does not currently, and agrees for the duration of the contract that it will not, use forced labor, or any goods or services produced by the forced labor, of ethnic Uyghurs in the People's Republic of China (A.R.S. § 35-394).
The state General Fund (state GF) consists of all monies received into the state treasury except for money designated by law for other statutory funds. Expenses paid from the state GF must be authorized in an appropriation by the Legislature (A.R.S. § 35-141). The State Treasurer is responsible for the safekeeping of all securities for which the State Treasurer is the lawful custodian. The State Treasurer invests state monies and operates the Local Government Investment Pool for the benefit of participating units of local government (A.R.S. § 35-314). The Arizona Department of Administration prescribes the use of all budget units in an accounting system designed to ensure compliance with all legal and constitutional requirements, including those receiving, spending and accounting for public monies (A.R.S. § 35-131).
There is no anticipated fiscal impact to the state GF associated with this legislation.
Provisions
1. Prohibits the use of public monies to promote, support or maintain DEI or to engage in political or social activism by any of the following:
b) a university under the jurisdiction of the Arizona Board of Regents;
c) a community college; or
d) a county, city, town or other political subdivision of Arizona.
2. Becomes effective on the general effective date.
Prepared by Senate Research
February 12, 2024
JT/MA/slp