The bill HB2457 amends existing Arizona law regarding the handling of public funds, specifically focusing on the responsibilities of the State Treasurer and fiduciaries managing state investments. Key provisions include the requirement for the State Treasurer to maintain and publicly post a current list of state investments and investment managers, ensuring updates are made in a timely manner. The bill emphasizes that all state investments must prioritize the financial interests of taxpayers, mandating that evaluations be based solely on pecuniary factors while prohibiting unnecessary investment risks and the promotion of nonpecuniary benefits or social goals.

Additionally, the bill outlines the duties of fiduciaries, stating they must act solely in the interest of plan participants and beneficiaries, focusing on providing pecuniary benefits and managing reasonable administrative expenses. It restricts fiduciaries from considering nonpecuniary factors in investment evaluations and mandates that voting rights associated with plan shares be exercised only in the pecuniary interest of the plan. The bill also prohibits granting proxy voting authority to individuals outside the governmental entity unless they adhere to guidelines that align with the obligation to act based solely on financial considerations.

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