HB2457 is a bill that amends Arizona Revised Statutes related to the handling of public funds by the State Treasurer and other fiduciaries. The bill introduces new requirements for the State Treasurer to post a current list of state investments and investment managers on a publicly accessible website and update any changes within a reasonable time frame. It mandates that all state investments be made solely in the interest of the beneficiary taxpayer and that the evaluation of investments must be based on pecuniary factors, prohibiting the promotion of nonpecuniary benefits or social goals.

The bill also defines terms such as "fiduciary," "nonpecuniary factor," "pecuniary factor," and "plan," and sets forth rules for fiduciaries managing plans. Fiduciaries are required to act solely in the interest of plan participants and beneficiaries, focusing exclusively on providing pecuniary benefits and not taking nonpecuniary factors into account when evaluating investments or discharging their duties. Additionally, the bill restricts the voting of shares held by a plan to only pecuniary interests and prohibits entrusting plan assets to fiduciaries that engage with companies or vote shares based on nonpecuniary factors. It also prevents fiduciaries from following the recommendations of proxy advisory firms unless their guidelines are consistent with the obligation to act based on pecuniary factors.

Statutes affected:
Introduced Version: 35-320
House Engrossed Version: 35-320