Bill > SB1093

This bill introduces new regulations for state investments and establishes guidelines for how state investment managers (called "fiduciaries") must handle public funds. The bill requires the state treasurer to publicly post current lists of state investments and investment managers on their website, with timely updates. More critically, it mandates that all state investments must be made solely in the financial interest of taxpayers, prohibiting investment decisions based on social, environmental, or political considerations (termed "nonpecuniary factors"). The bill defines a fiduciary as anyone with discretionary control over state investment plans, and specifies that such fiduciaries must evaluate investments based exclusively on pecuniary factors—those with a material effect on financial risk or return. Additionally, the bill restricts voting of shares held by state plans, allowing only the governmental entity to vote, and only in the pecuniary interest of the plan. Fiduciaries are prohibited from considering or voting shares based on nonpecuniary goals like environmental or social objectives, and cannot delegate voting to entities that might do so. The overall intent appears to be ensuring that state investments are managed strictly for financial performance, without being influenced by broader social or political agendas.

Government Affairs

https://apps.azleg.gov/BillStatus/BillOverview/81922