AN ACT

Amending Title 38, chapter 5, Arizona Revised Statutes, by adding article 7.1; relating to public retirement systems.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section  1.    Title 38, chapter 5, Arizona Revised Statutes, is amended by adding article 7.1, to read:

ARTICLE 7.1.    RETIREMENT SYSTEM INVESTMENTS

START_STATUTE38-931.    Definitions

In this article, unless the context otherwise requires:

1.    "Board" means the ASRS board established by section 38   713, or the board's designee, and the board of trustees established by section 38   848, or the board's designee.

2.    "Company" means a sole proprietorship, organization, association, corporation, partnership, venture or other entity, or its subsidiary or affiliate, that is for-profit or that exists to otherwise secure economic advantage.

3.    "Investment" means the purchase, ownership or control of publicly issued stock, corporate bonds or other debt instruments issued by a company.

4.    "Private prison company" means a company that generates the majority of its revenue from operating, managing or contracting as a prison or detention center.END_STATUTE

START_STATUTE38-932.    Investment liquidation; private prison companies

A.    The board may not make additional or new investments or renew existing investments in a private prison company.

B.    On or before July 1, 2022, the board shall liquidate all investments in any private prison company.END_STATUTE