Bill > SB1221

This bill requires publicly managed funds in Arizona (which are investment structures run by the state or its political subdivisions) to divest from certain Chinese companies and investments, specifically targeting entities owned by, controlled by, or domiciled in the People's Republic of China, the Chinese Communist Party, or the Chinese military. The legislation mandates that these funds must begin divestment immediately and complete the process within one year, using methods like reviewing publicly available information, consulting asset managers, contacting institutional investors, or hiring an independent research firm to identify restricted investments. Funds are exempt from divestment if the prohibited investments comprise less than 1% of their total holdings and the divestment costs would exceed 1% of those holdings. The bill provides legal protections for funds and individuals implementing these divestment requirements, ensuring they are immune from potential legal challenges and held harmless from related claims. The purpose of the bill is to stop funding companies connected to China due to increasing economic, political, and military tensions, and it applies to private equity or venture capital investments entered into or renewed after the bill's effective date. The legislation defines key terms like "company," "divestment," and "investment" to provide clarity on its scope and implementation.

Budget and Finance

https://apps.azleg.gov/BillStatus/BillOverview/82570